COTY INC. — Form 8-K

Coty announced an agreement with Kering to exit the Gucci Beauty license approximately one year early (ending ~June 2027 vs. original ~June 2028). Kering will pay $250M cash upfront and $150M by September 30, 2027 (up to $30M contingent on criteria), plus inventory proceeds. Separately, Coty sold its remaining Wella stake in December 2025 for $750M. Combined ~$1.15B in proceeds to be deployed toward debt reduction and reinvestment in core prestige brands. FY26 sales declined 5% like-for-like to $5.81B; adjusted EBITDA fell 22% to $847M. Free cash flow improved to $348M. Management expects Gucci exit will reduce FY28 sales/profit but plans brand acceleration and $400M+ cost reduction to mitigate. Financial net debt at $2.91B (3.4x adjusted EBITDA).