Coty Up 1.3% in the 4th Quarter, Driven in Part by the Burberry and Hugo Boss Licenses
By Eva Morletto20 août 2026
The Coty Group has just announced its results for the 4th quarter of 2026. The U.S.-based beauty group, which owns the Burberry, Hugo Boss, and Chloé licenses, among others, reported quarterly revenue of $1.27 billion, up 1.3% from the same period in 2025. The performance significantly exceeded Wall Street expectations, which had forecast a 4.6% decline.
For the full fiscal year, the financial situation remained under pressure following several quarters of shrinking margins. The group is now seeking to embark on a new strategic phase under the interim leadership of Markus Strobel.
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Coty.Curated: A Streamlining Strategy
The company launched its Coty.Curated program, designed to focus investments on a more limited number of brands and markets in order to streamline the portfolio and accelerate business decision-making. Fragrances are now at the heart of this strategy: luxury brands and mass-market fragrances together account for nearly 69% of the group’s sales. Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, and Kylie Cosmetics are among the priority assets that the company intends to further develop.
In July, Coty reached an agreement with Kering to return the Gucci Beauty license one year early, in exchange for approximately $400 million. However, the group will continue to operate Gucci Beauty until June 30, 2027. The proceeds will be used to reduce debt and reinvest in fragrance brands deemed more profitable.
New Leadership to Support the Strategic Shift
This initiative involves changes to key executive positions and the establishment of strategic partnerships with other major groups. The U.S. company has also just appointed Soraya Benchikh, former CFO of British American Tobacco, as CFO, replacing Laurent Mercier.
It is important to note that, despite these major decisions, the 2027 fiscal year is expected to be challenging. Coty is currently refusing to provide annual forecasts, describing the period as a “transition year.” Investors are now waiting for proof that the new strategy will restore margins on a sustainable basis. On the stock market, Coty’s stock fell by about 7% in trading following the release of the results.
Key Points:
- Coty exceeded expectations in the fourth quarter of 2026, with revenue of $1.27 billion, up 1.3% year-over-year, driven in particular by demand for fragrances and cosmetics.
- The group is refocusing its portfolio with “Coty.Curated,” concentrating its investments on its strategic brands and continuing to streamline its operations. In particular, Coty plans to return the Gucci Beauty license to Kering one year early, for approximately $400 million.
- 2027 will be a year of transition for Coty: the group is not yet providing full-year guidance and anticipates a decline in comparable sales in the first quarter. The appointment of Soraya Benchikh as the new chief financial officer marks this new strategic phase.
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