THE WHAT? Coty reported 1% year-on-year sales growth in Q4 FY2026, ahead of expectations, as the beauty group begins implementing its Coty.Curated strategic framework to strengthen its core prestige and consumer beauty businesses.
THE DETAILS Q4 like-for-like sales declined 1%, a sequential improvement despite an estimated 1% sales headwind from the Middle East conflict. For FY2026, operating cash flow increased to US$538 million and free cash flow reached US$348 million, despite lower profit. Under Coty.Curated, the company is streamlining its commercial, Consumer Beauty R&D and global brand marketing operations, reducing SKUs and concentrating investment behind fewer, higher-impact launches and hero products. Coty is also simplifying its portfolio, following the US750millionmonetisationofitsremainingWellastakeandtheUS400 million agreement to return the Gucci Beauty licence to Kering.
THE WHY? Coty is positioning FY2027 as a transition year focused on restoring competitiveness and simplifying the business, as sell-out continues to underperform the wider market. Proceeds from portfolio disposals are being directed towards debt reduction and investment in core prestige fragrance and beauty brands, while Coty prepares for the Gucci Beauty exit in FY2028 and a decision on its strategic review of Consumer Beauty by the end of 2026.
Source: Coty
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