U.S. cosmetics and fragrance group Coty, which recently announced the early transfer of its Gucci Beauty license to Kering and L’Oréal, reported wider losses for fiscal 2025/26 and is forecasting a “transition” year in fiscal 2027.

The group, which is undergoing a restructuring, reported a net loss of USD 618 million for the fiscal year ended in late June, compared with a USD 381 million loss a year earlier, according to a statement released on Wednesday, August 19.

Full-year sales fell 5% to USD 5.8 billion. However, performance stabilized in the fourth quarter, with sales returning to growth and rising 1% in the three months ended in late June.

"Our Q4 results provide early signs of stabilization, although the recovery will not be linear," said interim CEO Markus Strobel, as quoted in the statement.

“Fiscal year 27 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 fiscal year 28 and final portfolio decisions related to our strategic review of Consumer Beauty by the end of civil year 26,” he added.

In July, the US group — which has held the Gucci beauty license since 2016 — announced it would transfer it back a year ahead of schedule for "approximately USD 400 million" to Kering, the French luxury group that owns the Gucci brand. Coty will continue to operate Gucci Beauty until June 30, 2027.

Under the terms of the agreement signed with Kering on October 19, 2025, L’Oréal will subsequently hold the exclusive license for the Gucci Beauty brand for 50 years.

Coty said it plans to use the proceeds from the transaction to reduce debt, invest in its core portfolio of prestige fragrances and beauty products, and streamline its organization.

Last year, the group announced a strategic review of its mass-market cosmetics business as part of a broader effort to refocus on fragrances, including the merger of its “prestige” and “mass-market” fragrance divisions.

Coty also plans to continue significantly reducing the number of product launches and cutting marketing production costs, partly through the use of artificial intelligence, while increasing investment in consumer engagement.

In addition, Coty announced the appointment of Soraya Benchikh as its incoming Chief Financial Officer (CFO), effective September 1, 2026. She will succeed Laurent Mercier.

The appointment follows the new operating structure introduced by Coty on July 2, which includes a new commercial decision-making model and the consolidation of research and development and supply chain into a single function.