# Coty Keeps Year-End 2026 Target for Consumer Beauty Review

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/50719
Published: 2026-11-07T09:23:21.000Z
Updated: 2026-11-07T09:23:21.000Z
Section: Business

> The company plans a broader outlook after the review. A separate Gucci Beauty license agreement with Kering provides for about $400 million in consideration.

Coty is targeting the end of calendar 2026 to finish a strategic review of its Consumer Beauty business, with a broader outlook planned after the process as the company navigates a transition year in fiscal 2027.

“We remain committed to completing the strategic review by the end of calendar 2026,” said Markus Strobel, Coty’s executive chairman and interim CEO. The deadline is a target; Coty has not announced an outcome for the review.

The process covers Coty’s mass color cosmetics operations, which generated $1.2 billion in revenue and include CoverGirl, Rimmel, Sally Hansen and Max Factor. It also includes a distinct group of local Brazilian brands with revenue close to $400 million. Coty’s possible paths include partnerships, divestitures, spin-offs and other strategic actions.

Coty’s Consumer Beauty division recorded $496.8 million in net revenue in the three months ended Sept. 30, 2026. That was down 2% from a year earlier on a reported basis and 3% on a like-for-like basis. Across the company, net revenue was $1.5552 billion, down 1% reported and 2% like-for-like.

The Gucci Beauty license deal is separate from the Consumer Beauty review. Coty signed an agreement with Kering on July 7 to return the license, with about $400 million in aggregate consideration. The schedule calls for $250 million in cash at signing and a further $150 million by the earlier of the license termination date or Sept. 30, 2027. Up to $30 million of the later payment may be withheld in specified circumstances.

The license is set to terminate June 30, 2027, though Kering can choose to extend the date. Coty also agreed to sell Kering inventory for the transition; those purchases are invoiced separately from the license consideration. Coty plans to direct the Gucci proceeds toward debt reduction, investment in its core fragrance and beauty brands, and organizational changes.

Coty’s next stated milestone for the review is its completion target: the end of calendar 2026. The company plans to provide a broader outlook after the review concludes.