COTY ANNOUNCES FOURTH QUARTER FISCAL YEAR 2026 RESULTS (Form 8-K)

COTY ANNOUNCES FOURTH QUARTER FISCAL YEAR 2026 RESULTS

Q4 Results Ahead of Expectations, Including Sales Growth of 1%

Growth in FY26 Operating Cash Flow to $538 million and Free Cash Flow to $348 million, Despite Lower Profit

Coty.Curated Sets Clear Strategic Framework to Strengthen Business Fundamentals

NEW YORK -- August 19, 2026 -- Coty Inc. (NYSE: COTY) (Paris: COTY) ("Coty" or "the Company") today announced its results for the fourth quarter of fiscal year 2026, ended June 30, 2026. Coty delivered Q4 and FY26 sales, profit, and cash flow ahead of expectations, supported by cost control and the convergence of sales and sell-out.

"We closed FY26 on a stronger note, delivering sales and profit ahead of our targets, growing free cash flow even in the face of business headwinds, all while establishing a clear strategic framework and taking decisive action to steadily strengthen our core business in FY27 and beyond," said Markus Strobel, Executive Chairman and Interim Chief Executive Officer.

"We were pleased to return to reported sales growth, with Q4 sales up 1% year-over-year and a significant sequential improvement in our like-for-like (LFL) trends to down 1%, despite incurring an estimated 1% headwind to sales from the Middle East conflict. It's encouraging to see closer alignment between our sell-in and sell-out. However, we are not content with our sell-out performance, which remains below market levels in both divisions, and steadily closing that gap remains a clear priority across the organization.

"Our Coty.Curated strategic framework has entered the execution phase, with tangible actions already taken and further progress ahead. We began rightsizing our commercial organization and Consumer Beauty R&D and global brand marketing functions to enhance agility and accountability. We have also incorporated concrete market share targets into our global incentive program. Our FY27 big bets have been identified, and we will support them with amplified advocacy and consumer engagement programs, while also optimizing the visibility and recommendation of our brands across AI platforms. In Consumer Beauty color cosmetics, we are simplifying the innovation calendar and SKU base, and shifting resources toward fewer, higher-impact launches and proven hero products. We will execute these actions with discipline to minimize the impact on sales.

"Over the last three quarters, we have advanced our strategic objectives of simplifying our portfolio, sharpening our focus on the core of our business, and reducing our debt balance. In December 2025, we monetized our remaining stake in Wella for $750 million. In July 2026, we announced an agreement to sell the Gucci Beauty license back to Kering approximately one year ahead of its expiration for $400 million, plus additional proceeds from inventory. These favorable outcomes are fully consistent with our objectives, as we deploy the proceeds toward debt reduction, reinvestment in Coty's core prestige fragrance and beauty brands, and optimization of our organizational structure.

"While the Gucci Beauty license exit will result in a step-down in sales and profit in FY28, we are developing plans to help moderate the impact. These plans include accelerating our core brands; maximizing the contribution from new portfolio additions, including makeup under Marc Jacobs Beauty and fragrances under Swarovski, Etro, and Marni; and lowering our cost structure through a significant fixed cost reduction program. These actions are designed to mitigate the FY28 impact and position Coty to accelerate growth across our core portfolio and drive profit expansion in FY29 and beyond.

"In sum, our Q4 results provide early signs of stabilization, although the recovery will not be linear. FY27 will be a transition year as we strengthen our core business and continue shaping a simpler, more focused Coty, factoring in both the Gucci exit by FY28 and final portfolio decisions related to our strategic review of Consumer Beauty by the end of CY26. We have important strengths to build on, including leading brands, strong category positions, solid cash generation, and a differentiated end-to-end global platform. We are confident that our focused Coty.Curated framework will unlock Coty's significant potential and steadily translate into shareholder value in the years ahead."

RESULTS AT A GLANCE

						Three Months Ended June 30, 2026															Year Ended June 30, 2026
(in millions, except per share data)												Change YoY															Change YoY
COTY INC.												Reported Basis						(LFL)(a)									Reported Basis						(LFL)(a)
Net revenues						$	1,269.2					1		%				(1		%)	$	5,806.6					(2		%)				(5		%)
Gross Margin - reported						61		%													63		%
Gross Margin - adjusted*						61		%													63		%
Operating income - reported						(42.7)						<(100%)									(81.5)						<(100%)
Net loss attributable to common shareholders - reported**						(144.3)						<(100%)									(618.0)						(62		%)
Operating income - adjusted*						39.5						(42		%)							626.7						(27)		%
Net (loss) income attributable to common shareholders - adjusted* **						(13.4)						70		%							185.1						(2)		%
EBITDA - adjusted						93.6						(26		%)							846.9						(22)		%
EPS attributable to common shareholders (diluted) - reported						$	(0.16)					(100		%)							$	(0.70)					(59		%)
EPS attributable to common shareholders (diluted) - adjusted*						$	(0.02)					60		%							$	0.21					(5)		%
Cash flow from operations						116.0															537.8
Free cash flow*						72.6															348.2

(a) LFL results for the three months ended and year ended June 30, 2026 include immaterial help, respectively from Argentina resulting from significant price increases due to hyperinflation.

* These measures, as well as "free cash flow," "adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA)," and "financial net debt," are Non-GAAP Financial Measures. Refer to "Non-GAAP Financial Measures" for discussion of these measures. Reconciliations from reported to adjusted results can be found at the end of this release.

** Net income for Coty Inc. is net of the Convertible Series B Preferred Stock dividends.

Three Months Ended June 30, 2026, Summary Results

For the three months ended June 30, 2026, compared to the three months ended June 30, 2025:

•Net revenues of $1,269.2 million increased 1% on a reported basis and included a 3% benefit from foreign exchange (FX). On a LFL basis, net revenues declined 1%, which included an estimated 1% headwind from the conflict in the Middle East.

•Prestige net revenues of $771.8 million, representing 61% of the Company's total sales, increased 1% on a reported basis and included a 2% benefit from FX. On a LFL basis, Prestige net revenues declined 0.5%, which included an estimated 1.5% headwind from the conflict in the Middle East.

•Consumer Beauty net revenues of $497.4 million, representing 39% of the Company's total sales, increased 1% on a reported basis and included a 4% benefit from FX. On a LFL basis, Consumer Beauty net revenues declined 3%, which included an estimated 1% headwind from the conflict in the Middle East.

•Reported gross margin of 60.9% decreased 140 basis points year-over-year, driven by lower cost absorption due to reduced volumes, elevated excess and obsolescence charges in both divisions and the impact from tariffs. Adjusted gross margin of 60.9% decreased 140 basis points year-over-year.

•Reported operating loss of $42.7 million deteriorated from reported operating income of $15.5 million in the prior year. Reported operating loss margin of 3.4% compared to reported operating margin of 1.2% in the prior year. Adjusted operating income of $39.5 million decreased from $67.7 million in the prior year. Adjusted operating margin of 3.1% contracted by 230 basis points year-over-year.

•Reported net loss of $144.3 million compared to reported net loss of $72.1 million in the prior year. Reported net loss margin of 11.4% compared to reported net loss margin of 5.8% in the prior year. Adjusted net loss of $13.4 million improved from adjusted net loss of $44.9 million in the prior year.

Adjusted net loss margin of 1.1% compared to adjusted net loss margin of 3.6% in the prior year. Reported and adjusted net loss included a $10.0 million negative impact from the mark-to-market on the equity swap, compared to a $59.6 million negative impact from the mark-to-market on the equity swap in the prior year quarter.

•Adjusted EBITDA of $93.6 million decreased 26% from $126.7 million in the prior year primarily reflecting lower gross profit. Adjusted EBITDA margin of 7.4% decreased by 270 basis points.

•Reported loss per share of $0.16 compared to reported loss per share of $0.08 in the prior year. Adjusted loss per share of $0.02 improved from adjusted loss per share of $0.05 in the prior year. Reported and adjusted loss per share included a $0.02 negative impact from the mark-to-market on the equity swap, compared to a $0.07 negative impact from the mark-to-market on the equity swap in the prior year quarter.

•Cash flow from operating activities of $116.0 million compared to $83.2 million in the prior year period. Free cash flow totaled $72.6 million, compared to $34.9 million in the prior year period.

•Total debt of $3,088.2 million as of June 30, 2026 decreased from $3,216.2 million as of March 31, 2026, yielding a total debt to net loss ratio of 5.2x. Financial net debt of $2,912.1 million as of June 30, 2026 decreased from $2,959.1 million as of March 31, 2026, resulting in a financial leverage ratio (net debt to adjusted EBITDA) of 3.4x.

Twelve Months Ended June 30, 2026, Summary Results

For the twelve months ended June 30, 2026, compared to the twelve months ended June 30, 2025:

•Net revenues of $5,806.6 million decreased 2% and included a 4% benefit from FX. On a LFL basis, net revenues decreased 5%.

•Prestige net revenues of $3,805.8 million, representing 66% of the Company's total sales, decreased slightly on a reported basis and decreased 4% on a LFL basis.

•Consumer Beauty net revenues of $2,000.8 million, representing 34% of the Company's total sales, decreased 3% on a reported basis and 7% on a LFL basis.

•Reported gross margin of 62.9% decreased 190 basis points year-over-year, reflecting supply chain cost under-absorption due to lower sales, particularly in Consumer Beauty; the impact from tariffs; a more promotional environment in the first half of the year; and elevated excess and obsolescence charges. Adjusted gross margin of 63.0% decreased 190 basis points year-over-year.

•Reported operating loss of $81.5 million compared to reported operating income of $241.1 million in the prior year. Reported operating loss margin of 1.4% declined from reported operating margin of 4.1% in the prior year. Adjusted operating income of $626.7 million declined 27% from $852.9 million in the prior year. Adjusted operating margin of 10.8% reflected a 370 basis point decline.

•Reported net loss of $618.0 million compared to reported net loss of $381.1 million in the prior year. Reported net loss margin of 10.6% deteriorated from reported net loss margin of 6.5% in the prior year. Adjusted net income of $185.1 million decreased slightly from $188.8 million in the prior year. Adjusted net income margin of 3.2% was flat year-over-year. Reported net loss and adjusted net income included a

$115.8 million negative impact from the mark-to-market on the equity swap, compared to a $248.1 million negative impact from the mark-to-market on the equity swap in the prior year.

•Adjusted EBITDA of $846.9 million decreased 22% year-over-year from $1,081.7 million primarily driven by lower sales and gross profit. Adjusted EBITDA margin of 14.6% reflected a 380 basis point decline.

•Reported loss per share of $0.70 compared to reported loss per share of $0.44 in the prior year. Adjusted earnings per share (EPS) of $0.21 compared to $0.22 in the prior year. Reported loss per share and adjusted EPS included a $0.13 negative impact from the mark-to-market on the equity swap, compared to an $0.28 negative impact from the mark-to-market on the equity swap in the prior year.

•Cash flow from operating activities of $537.8 million compared to $492.6 million in the prior year period. Free cash flow totaled $348.2 million, compared to $277.6 million in the prior year period.

Noteworthy Developments

•Coty announced an agreement with Kering for the early transition of the Gucci Beauty license. As part of the agreement, Coty received $250 million in cash at signing and will receive an additional $150 million no later than September 30, 2027, of which up to $30 million is contingent on certain criteria. Coty has also agreed to sell to Kering an amount of Gucci Beauty inventory sufficient to support the transition. Under the terms of the agreement, Coty will continue to operate the Gucci Beauty brand through at least June 30, 2027, ending the license approximately one year ahead of the original license term.

•Coty continues to implement its Coty.Curated framework to support sharper focus and stronger execution

across the portfolio.

•Coty's Prestige strategy continues to be anchored by key brands such as Burberry, Hugo Boss, Calvin

Klein, Marc Jacobs, Chloé, Davidoff, and Kylie Cosmetics. Major FY26 launches continued to perform well, including BOSS Bottled Beyond, Cosmic by Kylie Jenner Intense, and Calvin Klein Euphoria Elixirs.

•Coty's online launch of makeup under Marc Jacobs Beauty is off to a strong start, with an exceptional consumer response and online sell-out at Sephora ahead of targets.

•Coty continues to see early progress in Consumer Beauty, with sell-out performance in the U.S. improving for CoverGirl and Sally Hansen. In the U.S., Sally Hansen is now outperforming the category in units, while CoverGirl has narrowed the gap versus the category significantly in both value and units.

Pipeline for FY27 and Beyond

Prestige Plans

•Building on the success of BOSS Bottled Beyond with the FY27 launch of BOSS Bottled Beyond for Her, designed to extend the franchise into the female fragrance segment and support the core franchise

•Strengthening the iconic Burberry Goddess franchise following the recent launch of Goddess Amber Vanilla, as well as relaunching a brand new, impactful campaign and incremental innovation behind one of Burberry's core franchises

•Expanding Marc Jacobs Beauty makeup beyond online distribution into hundreds of Sephora stores across the U.S. and in Travel Retail beginning in September

•Building on Kylie Cosmetics' strong multi-category growth through the launch of the Mood Stones fragrance collection and new lip kits

•Elevating Calvin Klein fragrances by amplifying the Euphoria Elixirs launch and leaning into renewed interest in 1990s nostalgia, leveraging CK One's position as one of the era's defining fragrances

•Advancing additional key launches across several core brands, alongside the planned debut of Etro fragrances in the second half of FY27 and Swarovski fragrances in CY27

Consumer Beauty Plans

•Advancing Color the Future through fewer, higher-impact launches in FY27 including CoverGirl's TruBlend Sun & Sculpt Bronzing Glow Serum, Rimmel's Oh My Gloss! Slip Stick, Max Factor's Lasting Blur and Sally Hansen's Miracle Gel and INSTA-DRI seasonal shade stories

•Introducing Future of Scenting to sharpen focus across the mass-fragrance portfolio and drive more consistent performance, including continuing to scale adidas fragrances globally

Outlook

Consumer demand for beauty remains resilient, with continued growth in fragrances and cosmetics, although consumers are becoming increasingly selective in their purchasing decisions. Coty continues to advance its Coty.Curated strategic framework, focusing on core brands and markets, reducing portfolio complexity, increasing agility through organizational simplification, and identifying savings opportunities across the P&L to support increased investment in consumer engagement while also protecting profitability.

Coty expects 1Q27 LFL revenue to decline by a low- to mid-single-digit percentage. While sell-out trends for both divisions are expected to be broadly consistent with the trends in the second half of FY26, the timing of customer orders and prior year comparisons are expected to contribute to fluctuations in year-over-year sales trends. On a reported basis, Coty expects FX to have a neutral impact on revenue in the quarter.

Adjusted gross margin in 1Q27 is expected to decline by approximately 50 to 100 basis points year-over-year, reflecting cost absorption headwinds from lower shipments, partially offset by productivity initiatives and procurement actions. Coty anticipates 1Q27 adjusted EBITDA to decline by a low-teens percentage, representing a sequential improvement from the more significant declines in the second half of FY26. This is expected to result in adjusted EPS, excluding the equity swap, of $0.11 to $0.13 per share.

Supported by the seasonally strong business dynamics in the first half, as well as continued disciplined capital expenditure and working capital management, Coty expects free cash flow for the first half of FY27 of over $300 million.

FY27 is expected to be a transition year as Coty completes its strategic review and advances the early-stage implementation of Coty.Curated. Accordingly, at this stage Coty is providing guidance for Q1 and visibility into first-half free cash flow. Coty's Q1 EBITDA outlook reflects sequential improvement from year-over-year trends in the second half of FY26. The Company expects performance to strengthen progressively throughout FY27, supported by innovation, disciplined execution, cost savings, and strong cash flow generation. Overall, year-over-year EBITDA trends are expected to improve over the course of FY27, supported by ongoing productivity initiatives and cost discipline. Following the expected completion of the Company's strategic review by the end of CY26, and as implementation of Coty.Curated progresses, Coty expects to provide a broader outlook supported by greater visibility into Coty's growth and profitability trajectory.

Fourth Quarter Fiscal 2026 Business Review by Segment

						Three Months Ended June 30,																														Year ended June 30,
(in millions)						2026						2025						Change YoY						LFL(a) Change YoY						Margin (b)						2026						2025						Change YoY						LFL(a) Change YoY						Margin (b)
Net Revenue:
Prestige						$	771.8					$	760.6					1		%				(0.5		%)										$	3,805.8					$	3,820.2					0		%				(4		%)
Consumer Beauty						497.4						491.8						1		%				(3		%)										2,000.8						2,072.7						(3		%)				(7		%)
Total Net Revenue						$	1,269.2					$	1,252.4					1		%				(1		%)										$	5,806.6					$	5,892.9					(2		%)				(5		%)
Reported Operating Income (Loss):
Prestige						$	(4.7)					$	38.1					<(100%)												(0.6)		%				$	444.5					$	580.6					(23		%)										11.7		%
Consumer Beauty						(29.9)						(16.0)						(87		%)										(6.0)		%				(442.6)						(127.4)						<(100%)												(22.1)		%
Corporate						(8.1)						(6.6)						(23		%)										N/A						(83.4)						(212.1)						61		%										N/A
Total Reported Operating (Loss) Income						$	(42.7)					$	15.5					<(100%)												(3.4)		%				$	(81.5)					$	241.1					<(100%)												(1.4)		%
Adjusted Operating Income (Loss):
Prestige						$	60.2					$	74.7					(19		%)										7.8		%				669.9						$	773.2					(13		%)										17.6		%
Consumer Beauty						(20.7)						(7.0)						<(100%)												(4.2)		%				(43.2)						79.7						<(100%)												(2.2)		%
Total Adjusted Operating Income						$	39.5					$	67.7					(42		%)										3.1		%				$	626.7					$	852.9					(27		%)										10.8		%
Adjusted EBITDA:
Prestige						$	85.8					$	102.9					(17		%)										11.1		%				$	779.1					$	884.6					(12		%)										20.5		%
Consumer Beauty						7.8						23.8						(67		%)										1.6		%				67.8						197.1						(66		%)										3.4		%
Total Adjusted EBITDA						$	93.6					$	126.7					(26		%)										7.4		%				$	846.9					$	1,081.7					(22		%)										14.6		%

(a) Consolidated, Prestige, and Consumer Beauty LFL results for the three months and year ended June 30, 2026 include immaterial help from Argentina resulting from significant price increases due to hyperinflation.

(b) The margin of each of the items included for each segment is calculated as a percentage of the divisional net revenues.

Prestige

•Reported net revenues in the fourth quarter increased by $11.2 million year-over-year, primarily driven by an increase in Prestige cosmetics and fragrance sales, partially offset by lower skincare sales.

•Reported operating loss in the fourth quarter represented a year-over-year deterioration from reported operating income in the prior-year period, primarily due to top-line pressure from lower fragrance shipments, gross margin pressure from higher tariff costs and the resulting cost of goods sold (COGS) absorption headwinds from lower shipment volumes, and higher fixed costs compared to a prior year period that benefited from lower variable compensation.

Consumer Beauty

•Reported net revenues in the fourth quarter increased by $5.6 million year-over-year, primarily driven by an increase in mass body and skincare sales, partially offset by lower mass color cosmetics sales.

•Reported operating loss in the fourth quarter widened year-over-year, primarily reflecting supply chain cost under-absorption from lower sales, increased excess and obsolescence, and higher tariff-related costs.

Fourth Quarter Fiscal 2026 Business Review by Region

						Three Months Ended June 30,																								Year Ended June 30,
						Net Revenues												Change												Net Revenues												Change
(in millions)						2026						2025						Reported Basis						LFL(a)						2026						2025						Reported Basis						LFL(a)
Americas						$	554.7					$	511.2					9		%				6		%				$	2,339.2					$	2,373.0					(1)		%				(3)		%
EMEA						528.9						574.2						(8)		%				(10)		%				2,745.5						2,811.8						(2)		%				(8)		%
Asia Pacific						185.6						167.0						11		%				7		%				721.9						708.1						2		%				-		%
Total						$	1,269.2					$	1,252.4					1		%				(1)		%				$	5,806.6					$	5,892.9					(2)		%				(5)		%

(a) Americas LFL results for the three months ended and year ended June 30, 2026 include immaterial help, respectively from Argentina resulting from significant price increases due to hyperinflation.

Americas

•Reported net revenues in the fourth quarter increased by $43.5 million year-over-year, primarily driven by higher sales in the U.S., Brazil, and the regional Travel Retail channel, partially offset by lower sales in Canada.

EMEA

•Reported net revenues in the fourth quarter decreased by $45.3 million year-over-year, primarily driven by lower sales in the Middle East, Germany, and Central and Eastern Europe.

Asia Pacific

•Reported net revenues in the fourth quarter increased by $18.6 million year-over-year, primarily driven by higher sales in China, Southeast Asia, Australia and New Zealand, and the regional Travel Retail channel.

Conference Call

Coty Inc. will issue pre-recorded remarks on August 19, 2026, at approximately 4:45 PM (ET) / 10:45 PM (CET) and will hold a live question-and-answer session on August 20, 2026, beginning at 8:00 AM (ET) / 2:00 PM (CET). The pre-recorded remarks and live question-and-answer session will be available at http://investors.coty.com. The dial-in number for the live question-and-answer session is 1-800-343-5172 in the U.S. or 1-203-518-9856 internationally (conference passcode: COTY4Q26).

For more information:

Investor Relations

Olga Levinzon, +1 212 389-7733

[email protected]

Media

Antonia Werther, +31 621 394495

[email protected]

About Coty Inc.

Founded in Paris in 1904, Coty is one of the world's largest beauty companies with a portfolio of iconic brands

across fragrance, color cosmetics, and skin and body care. Coty serves consumers around the world, selling

prestige and mass market products in over 120 countries and territories. Coty and our brands empower people to

express themselves freely, creating their own visions of beauty; and we are committed to protecting the planet.

Learn more at coty.com or on LinkedIn and Instagram.