Coty raises share repurchase program by $600M

Coty announced that its Board of Directors has increased its share repurchase program authorization by an additional $600M to a total availability of approximately $1B. In connection with today’s announcement, Coty is entering into total return swaps in respect of its Class A Common Stock with several banks to hedge its potential exposure to prevailing stock price trading levels over the applicable hedging periods for a planned share buyback of approximately 25M shares in fiscal 2026. These agreements are in addition to the Company’s previously announced hedge transactions for planned buyback of 27M shares in 3Q FY24 and 23 million shares in FY25. Similar to the initial hedge transactions executed in June and December 2022, any total return swap settled in shares would be covered by the Company’s share repurchase authorization. The three hedge transactions are part of Coty’s target to reduce its diluted share count toward 800M by FY26. Coty anticipates continued strong free cash flow generation and to achieve steady deleveraging with target leverage of approximately 3x exiting CY23, approximately 2.5x exiting CY24 and approximately 2x exiting CY25.