Coty Inc. (COTY) Earnings
Coty Inc. is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $0.12. COTY has beaten EPS estimates in 3 of its last 12 reported quarters (average surprise -834.3% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 19, 2026 | $-0.01 | $-0.02 | -224.7% | $1.3B | +6.3% |
| May 6, 2026 | $0.00 | $-0.03 | -3070.3% | $1.3B | +1.0% |
| Feb 5, 2026 | $0.18 | $0.14 | -22.2% | $1.7B | +25.1% |
| Nov 5, 2025 | $0.15 | $0.12 | -20.0% | $1.6B | -4.9% |
| Aug 20, 2025 | $0.01 | $-0.05 | -600.0% | $1.3B | -22.8% |
| Aug 20, 2024 | $0.05 | $-0.03 | -159.4% | $1.4B | -0.9% |
| Feb 7, 2024 | $0.20 | $0.25 | +25.0% | $1.7B | +2.9% |
| Aug 22, 2023 | $0.02 | $0.01 | -36.0% | $1.4B | +3.4% |
| Feb 8, 2023 | $0.15 | $0.22 | +46.7% | $1.5B | +1.5% |
| Aug 25, 2022 | $-0.01 | $-0.01 | -9.1% | $1.2B | +2.0% |
| Feb 8, 2022 | $0.11 | $0.17 | +54.5% | $1.6B | -1.6% |
| Aug 26, 2021 | $-0.05 | $-0.09 | -80.0% | $1.1B | +34.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q4 FY2026 · August 19, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Company Performance * Q4 2026 like-for-like sales declined 1%, which was ahead of guidance for a mid-single-digit decline, driven by stronger-than-expected U.S. orders for prestige fragrances and mass cosmetics, and a smaller 1% sales impact from the Middle East conflict vs. the anticipated 2-3% impact. Full FY26 like-for-like sales declined 5%. * Adjusted gross margin was 60.9% in Q4 (down 140 bps YoY, in-line with expectations) and 63% for full FY26 (down 190 bps YoY). Adjusted EBITDA and adjusted EPS (excluding equity swap) came in at the high end of guidance; adjusted EPS was breakeven in Q4 and $0.34 for full FY26. * The company's All-In-To-Win savings program delivered over $250 million in productivity and fixed cost savings in FY26, exceeding targets; underlying fixed cost structure declined 4% YoY despite inflation. * Full-year FY26 free cash flow was $348 million, an increase of $70 million YoY and ahead of guidance, driven by strong working capital discipline. Net debt declined by nearly $840 million YoY to $2.9 billion, with leverage at ~3.4x; the long-term target leverage remains ~2x. - Strategic Framework (Coty Curated) * The framework focuses on concentrated investment in core brands and markets, reducing portfolio complexity, simplifying the organization to improve agility, and reallocating savings to consumer engagement to protect profitability. * Key operational actions completed to date include: simplifying and de-layering the commercial organization; adding market share as a KPI for FY27 incentive compensation to align the organization around sell-out growth; concentrating innovation on a smaller number of high-impact big bets; expanding generative AI use to improve content efficiency and AI-driven brand discovery; and applying rigorous ROI screening across the full portfolio. - Core Brand Progress (Prestige) * Burberry: Burberry fragrances rose from #29 globally in 2019 to #15 today, and Burberry makeup delivered double-digit growth in Q4 and full FY26; category share of influence increased 80 bps. * Hugo Boss: Fragrances gained share in the U.S. and Canada, with the Boss Bottle franchise holding a top 5 position in Europe; category share of influence increased 100 bps. * Calvin Klein: The Euphoria Elixir launch drove share gains across multiple markets, with the broader Calvin Klein fragrance business delivering mid-single-digit sell-out growth in Q4; category share of influence increased 60 bps. * Marc Jacobs: Fragrance sales grew double-digit over the past six months; the new Marc Jacobs makeup launch has delivered early sell-out results ahead of targets, with a full Sephora store rollout planned for September 2026. * Kylie Cosmetics: Both fragrance and makeup sales grew double-digit over the past six months, with Kylie gaining unit share across the U.S., UK, and Canada. - Consumer Beauty Turnaround (Color the Future Plan) * Key actions include: implementing a new leaner operating model for global marketing and product development to improve speed; reducing SKU count by 20% (with negligible revenue impact) and completing exits from all underscale markets in Q4; refocusing brand targeting: CoverGirl/Max Factor on Gen X, while maintaining existing equity for Rimmel/Bourjois; and rolling out AI-enabled content production to reduce costs and improve speed. * Early results show material improvement: Sally Hansen's sales gap to the category narrowed to 1 point from 6 points over 52 weeks, with 5% unit growth against a flat category; CoverGirl's sales improved from a 6% 52-week decline to slightly positive over the latest four weeks; UK Rimmel's sales decline narrowed from 3% over 52 weeks to 0.5% over the latest four weeks, outperforming the category on a unit basis. - Gucci License Early Exit Agreement * Coty reached an agreement to transition the Gucci Beauty license to Kering one year early (by FY28), for total cash proceeds of $400 million plus inventory proceeds. Proceeds will be used for debt reduction, core brand investment, and organizational optimization. Gucci Beauty currently contributes a low double-digit percentage of total Coty revenues, with profitability consistent with the broader Prestige division.
Guidance
- Q1 FY27: Like-for-like revenue is expected to decline by a low to mid-single-digit percentage, with sell-out trends broadly consistent with H2 FY26. Adjusted gross margins are expected to decline 50-100 bps YoY, and adjusted EBITDA is expected to decline by a low teens percentage (an improvement from larger declines in H2 FY26). Adjusted EPS (excluding equity swap) is guided to 11-13 cents per share. Free cash flow for H1 FY27 is expected to exceed $300 million. - Full-year FY27: No full-year guidance is provided at this stage, as Coty Curated remains in early implementation with uneven quarterly trends and the ongoing strategic portfolio review will conclude by the end of calendar 2026. Fiscal 27 is positioned as a transition year, and management expects EBITDA trends to improve sequentially over the course of the year. - Fiscal 28 (post-Gucci exit): The company's current planning targets are: 1) Return underlying portfolio (excluding Gucci) to growth in FY28; 2) Moderate the mechanical adjusted EBITDA decline from the Gucci exit, with profit growth resuming in FY29 and beyond; 3) Continue reducing net debt in both FY27 and FY28, with a long-term target leverage of ~2x. A $400 million proceeds from the Gucci early exit will be used for debt reduction, core brand investment, and cost structure optimization. The company plans to implement a major fixed cost savings program starting in H2 FY27, targeting several hundred million in additional cumulative savings over the next three years, to offset the profit impact of the Gucci exit.
Segment performance
1. Prestige Division: Q4 2026 like-for-like sales declined 0.5% sequentially, better than expectations. Within the division, Prestige Fragrance like-for-like revenues declined 1% in Q4 and 4% in H2 FY26, while Prestige Cosmetics delivered double-digit sales and sell-out growth driven by Kylie, Burberry, and the early Marc Jacobs makeup launch. Adjusted EBITDA for the Prestige division declined 17% year-over-year in Q4 and 12% for full FY26, delivering a strong 20.5% adjusted EBITDA margin for full FY26. The Middle East conflict reduced Q4 Prestige sales by ~1.5%, a smaller impact than initially anticipated. Prestige contributed approximately 70-80% of total company EBITDA based on margin structure. 2. Consumer Beauty Division: Q4 2026 like-for-like sales declined 3%, an improvement from prior quarter trends. Color cosmetics pressure persisted but trends improved sequentially; Sally Hansen returned to sales growth with positive six-month sell-out momentum, CoverGirl sell-out trends improved and narrowed the gap to category growth, and UK-based Rimmel gained volume market share in Q4. Lifestyle fragrances remained challenged but also saw improving trends. Adjusted EBITDA for Consumer Beauty declined 67% year-over-year in Q4, but improved $32 million sequentially from Q3 driven by tighter cost control and seasonal sales strength. Gross margin pressure from lower volume absorption, excess inventory, and tariff costs weighed heavily on division profitability.
Risks & headwinds
- Continued macroeconomic and geopolitical volatility, including ongoing impacts from the Middle East conflict that could create further cost of goods volatility tied to oil prices. Management estimates that if oil prices remain at or below $100 per barrel, the cost impact will be limited to $20-$30 million, which is embedded in current guidance. - Persistent competitive pressure in both prestige and mass beauty segments, with Coty's current sell-out performance trailing overall market growth in both divisions. - The mechanical profit impact of the Gucci Beauty exit in FY28, which will be sizable without mitigating actions; management is developing cost savings and growth initiatives to offset this impact, but full implementation will take time. - Quarterly performance volatility is expected to continue through FY27 as the company completes portfolio adjustments and executes its turnaround and simplification plans. - Potential uncertainty from ongoing portfolio strategic review, with final decisions expected by the end of calendar 2026.