Coty sees FY27 transition year with EBITDA decline; taps new CFO

Coty

19/08/2026 22:14

Overview
Beauty products maker's Q4 revenue grew 1% yr/yr, beating analyst expectations
Adjusted loss per share for Q4 missed analyst expectations
Company cited cost control and sales growth despite Middle East conflict headwinds
Names Soraya Benchikh as CFO effective Sept 1, as it implements new operating structure; shares slide

Outlook
Coty expects Q1 FY27 LFL revenue to decline by low- to mid-single-digit percentage
Company sees Q1 FY27 adjusted EPS, excluding equity swap, at $0.11-$0.13
Coty expects over $300 mln free cash flow in first half of FY27

Result Drivers
MIDDLE EAST CONFLICT - Co said sales faced an estimated 1% headwind from the conflict in the Middle East
GROSS MARGIN PRESSURE - Co cited lower cost absorption from reduced volumes, higher excess and obsolescence charges, and tariffs as drivers of gross margin decline
PRESTIGE SALES - Higher Prestige cosmetics and fragrance sales contributed to Q4 revenue growth, partly offset by lower skincare sales

Company press release: ID:nBw1n22JWa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.27 bln
$1.19 bln (10 Analysts)
Q4 Adjusted Loss Per Share
Miss
$0.02
$0.007 (12 Analysts)
Q4 Loss Per Share
 
$0.16
 
Q4 Adjusted EBITDA
Miss
$93.60 mln
$96.22 mln (10 Analysts)
Q4 Adjusted operating income
Beat
$39.50 mln
$38.90 mln (8 Analysts)
Q4 Adjusted Gross Margin
 
60.90%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the personal products peer group is "hold"
Wall Street's median 12-month price target for Coty Inc is $2.80, about 7.6% above its August 19 closing price of $3.03
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)