Coty's move to exit the Gucci Beauty license back to Kering roughly a year ahead of its scheduled end will result in a step-down in sales and profit in FY28. "We are developing plans to help moderate the impact," the beauty brand told investors Wednesday. These plans include accelerating its core brands and lowering its 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," the company says.

This article was automatically created using artificial-intelligence technology and reviewed by Dow Jones Newswires editors.