Beauty / news
Coty Beats Revenue Estimates, Names New CFO Amid Gucci License Exit
Coty topped Wall Street sales forecasts in its fiscal fourth quarter and appointed Soraya Benchikh as CFO, even as it navigates the loss of the Gucci Beauty license and reports a wider net loss.
For the three months ended June 30, Coty's net revenue rose 1 percent to $1.26 billion, surpassing analyst projections of $1.19 billion. Prestige net revenues grew 1 percent to $771.8 million, accounting for 61 percent of total sales, while consumer beauty net revenues also increased 1 percent to $497.4 million.
The company is adjusting to the end of its Gucci Beauty license, a key growth driver in recent years. Markus Strobel, executive chairman and interim chief executive officer, said the company returned to reported sales growth in the quarter, with like-for-like trends improving sequentially to down 1 percent, despite an estimated 1 percent headwind from the Middle East conflict. He also noted closer alignment between sell-in and sell-out.
Coty still reported a net loss of $144.3 million for the quarter, deeper than the $72.1 million loss a year earlier. Adjusted losses per share narrowed to 2 cents, but missed the 1-cent loss analysts had expected.
In a separate move, the company named Soraya Benchikh as chief financial officer, signaling preparation for its next phase of growth. Coty did not provide full-year guidance for 2027, but Strobel alluded to opportunities beyond the Gucci license, suggesting the company is positioning for a reset.