Coty Inc.

Management did not report full-quarter revenue, EPS, or gross margin figures in this Q&A-only transcript. The main financial outlook given was that Coty is targeting fiscal 2027 EBITDA and free cash flow close to fiscal 2026 levels, with guidance for Q1 only previously provided elsewhere. Markus Strobel said the company has built in $20 million to $30 million of costs tied to oil prices between $90 and $100, and noted a potential tariff refund of about $30 million as an upside item. He also said the company aims to reduce the decline rate seen over the last two quarters and improve sell-out sequentially through fiscal 2027.

Markus Strobel emphasized that Coty is shifting from a sell-in mindset to a sell-out and market-share mindset, and said the organization’s bonus system has been changed for fiscal 2027 to reinforce that behavior. He framed the current year as a transition period with strong incremental innovation, more disciplined spending, and focused investment in the brands and geographies where Coty can win. His tone was candid and guardedly optimistic: he repeatedly said the company is not satisfied with current performance, but believes the right operational changes are now in place.

Laurent Mercier focused on the financial implications of the portfolio and restructuring work, especially around Gucci and Consumer Beauty. He said Coty was happy with the Kering deal because it delivered compensation for a year of profit and cash, funds to pay down debt, money for restructuring, and inventory resolution. He also said the company is looking at a serious restructuring program across go-to-market, manufacturing and distribution, and the central organization, with a meaningful amount of allocated overhead tied to the Prestige business; no specific cash balance or margin figures were given in the Q&A.

Analysts pressed on the fiscal 2027 transition, especially what KPIs matter most, how much upside exists, and where the risks are. Management said the key KPI is sell-out versus the market, with upside depending on faster market-share gains, lower oil-related costs, and a possible $30 million tariff refund. Questions also focused on Consumer Beauty’s U.S. improvement versus Europe, and management said the U.S. turnaround is being driven mainly by more focused advertising, tighter SKU assortment, and better innovation rather than promotions, while Europe is earlier in the rollout.