After closing down just 0.5 percent at $4.86, Coty’s stock price dropped more than 17 percent in after-hours trading Wednesday after a greater profit loss in its fourth quarter than Wall Street had expected, although it surpassed revenue forecasts.

The beauty company, which holds many licenses including for fashion houses Burberry, Gucci and Hugo Boss, reported a net loss of $72.1 million. The adjusted EPS loss was 5 cents a share, below forecasts for a 1 cent profit.

Net revenue was $1.25 billion in the fourth quarter ended June 30, down 8 percent year-over-year, but above Wall Street forecasts.

In the prestige sector, where Coty is launching new Boss Bottled Beyond globally, coupled with the broader extension of the Hugo Boss brand into the U.S. market, net revenue came in at $760.6 million, down 5 percent.

In consumer beauty, where it is launching new innovations under key mass fragrance brands, including Adidas, Nautica, Vera Wang and Bruno Banani, net revenue was $491.8 million, 12 percent lower than a year earlier.

Sue Nabi, Coty’s chief executive officer, said: “While Q4 was broadly in line with expectations as we set the baseline for a strong launch calendar in FY26, and we expect our organizational changes will start yielding results in the coming year, there is more to do. We are entering the next phase of our strategy with a sharper focus on our core strengths and the most attractive categories where we can deliver outsized returns.”

For fiscal 2026, Coty anticipates a decline in like-for-like sales of 6 percent to 8 percent in the first quarter of 2026 and a drop of 3 percent to 5 percent in the second quarter, with a return to growth in the second half. 

In April, Coty revealed plans to cut up to 700 jobs as it revisits a strategy launched during the pandemic.

In June, WWD reported that buzz is swirling that Coty is looking for buyers, but it would not be a one-and-done deal. While the sources said talks are in the very early stages, a number told WWD that Coty, jointly listed in New York and Paris, is exploring a potential sell-off in two parts. That would involve its Luxury division, counting brands such as Gucci, Burberry, Jil Sander and Hugo Boss, and its Consumer division, with mass brands including Covergirl, Max Factor and Rimmel London. At the time, a Coty spokeswoman said the company does not comment on rumors and speculation.