Latest news with #Coty
Fashion United
4 days ago
- Business
- Fashion United
Coty considering two-part sale, according to industry sources
US-based group Coty Inc., listed in New York and Paris, may be approaching a decisive turning point. According to several industry sources cited by WWD, the cosmetics specialist is considering a partial sale of its businesses, potentially paving the way for a profound restructuring of the company. Two-stage sale According to information gathered by WWD, discussions are still at a preliminary stage. The scenario under consideration would involve a two-stage sale: firstly, the Luxury division, which includes the Gucci, Burberry, Jil Sander and Hugo Boss licences; and secondly, the Consumer Beauty division, with mass-market brands such as CoverGirl, Max Factor and Rimmel London. When questioned by the media outlet, a Coty spokesperson declined to comment, stating that the company does not comment on "rumours or speculation". Coveted brands but complex transaction According to WWD's information, Coty is currently in discussion with Interparfums for some of its Luxury assets, including the Burberry and Hugo Boss fragrances. "We are always inclined to study opportunities that arise," said a spokesperson for Interparfums SA on Monday. According to sources close to the matter, the group has already submitted an offer to recover the Burberry licence, which it held until 2013. The Burberry Goddess brand, launched in 2023, is considered Coty's greatest commercial success to date, and Hugo Boss rose to become the second largest men's fragrance franchise in Europe in the second half of 2024. However, the future of the Gucci licence seems more uncertain. As WWD points out, the parent company Kering has for several years been aiming to develop its beauty activities internally and could recover the management of Gucci perfumes when the licence expires, expected by several observers to be in 2028. This is a deadline that Coty's chief executive officer, Sue Nabi, mentioned in July 2023, stating that no discussions on licence renewals would take place for five years. Consumer beauty division: a stumbling block While the Luxury division is attracting interest, the sale of the Consumer Beauty business is proving more difficult. According to WWD, Coty initially hoped to find a buyer in Asia, but the regional economic slowdown, combined with persistent trade tensions with the US, makes this prospect increasingly unlikely. In addition, mass-market brands such as CoverGirl and Rimmel are facing growing competition from direct-to-consumer (D2C) players, and their attractiveness is considered lower than that of premium brands in terms of valuation. However, some sources cited by WWD believe that the division could be of interest to private equity funds. But a global takeover of Coty by a single player seems unlikely, particularly for competition reasons. "If Coty manages to sell the Consumer Beauty division, the fragrance part will find a buyer immediately," another source told WWD. Shaky financial indicators In the third quarter of its 2025 fiscal year, ending 31 March, revenue in the Consumer Beauty division fell by 9 percent, reflecting the segment's difficulties. Overall, Coty posted a 6 percent decline in revenue to 1.29 billion dollars, below analysts' forecasts of 1.3 billion dollars, reports Coty's share price, which has fallen sharply since the beginning of the year (-30.7 percent), jumped 11 to 13 percent after the publication of the sale rumours by WWD, according to and Bloomberg. In comparison, L'Oréal posted growth of nearly ten percent over the same period and Estée Lauder's decline was limited to 2.4 percent. Coty's recent underperformance is also explained by the loss-making sale of Skkn by Kim, Kim Kardashian's brand, which resulted in a loss of 71.1 million dollars in the last quarter. Coty acquired a 20 percent stake in the company for 200 million dollars in 2022, but Kim Kardashian regained full control in March 2025. Coty had already had to manage similar difficulties with Kylie Cosmetics, whose growth disappointed despite a promising start in perfumery. At the same time, the group is still seeking to fully divest itself of Wella, the hair care specialist, in which it still holds a 3.6 percent stake. An attempted sale to IGF Wealth Management failed in October 2023. Governance in suspense Speculation is also rife about Sue Nabi's future at the helm of Coty. According to WWD, some observers envisage her departure as early as this summer. Formerly of L'Oréal and founder of Orveda, Nabi took over as chief executive officer of Coty in 2020, succeeding Peter Harf, now chairman of the board. Harf announced his retirement from JAB, Coty's main shareholder, in April 2025 after 40 years with the group. Turning the page With a market capitalisation estimated at 4.13 billion dollars and revenue of 6.1 billion dollars in 2024 according to the WWD Beauty Inc ranking, Coty remains a major player in global beauty. But the group's future seems more open than ever. Between the possible loss of the Gucci licence, the difficulties of the Consumer Beauty division and market pressure, Coty could well be at a decisive turning point. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Business of Fashion
4 days ago
- Business
- Business of Fashion
Coty Shares Surge on Report Company Looking to Sell Off Units
Shares of Coty Inc. jumped following a report the embattled cosmetics and perfume company is contemplating splitting up the business. The stock rose as much as 13 percent after Women's Wear Daily said the company is in the early stages of a sale process, citing 'multiple industry sources' it didn't identify. Coty's shares declined 32 percent this year through the close Friday, worse than performance of competitors and major equity indexes. WWD reported Coty is considering the sale of its luxury and consumer divisions in separate pieces, with Interparfums Inc. interested in its high-end fragrance brands Burberry and Hugo Boss. Coty didn't immediately respond to a request for comment. Interparfums didn't immediately provide a comment. Coty's sales have declined for two consecutive quarters as shoppers in North America and Asia pull back. Analysts are projecting total sales will fall 12 percent in the current quarter. The mass-market unit, which includes brands such as Covergirl, appears to be attracting less interest amid a slowdown in beauty spending in Asia and trade tensions, according to WWD. By Redd Brown Learn more: Coty to Cut 700 Jobs As Part of Cost-Saving Initiative The American beauty conglomerate announced on Thursday that a newly enhanced cost-saving programme will cull 700 jobs across the globe, around 5 percent of its workforce.
Yahoo
4 days ago
- Business
- Yahoo
Why Is Coty (COTY) Stock Rocketing Higher Today
Shares of beauty products company Coty (NYSE:COTY) jumped 7% in the afternoon session after WWD (Women's Wear Daily) reported that the company is exploring a potential sale. Sources suggested the company was in the very early stages of discussions to potentially sell off its business in two parts, separating its luxury division from its consumer division. This report raised investor optimism about a potential valuation increase for Coty. The shares closed the day at $5.05, up 6.7% from previous close. Is now the time to buy Coty? Access our full analysis report here, it's free. Coty's shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 2 months ago when the stock dropped 9.3% on the news that Bank of America analysts issued a rare double downgrade on the company, shifting their rating from Buy to Sell, signaling a significant deterioration in their outlook. Alongside the downgrade, the firm slashed its price target from $9 to $4.50. The analysts pointed to declining market share, an indication the company was losing ground to competitors, and persistent softness in consumer spending, which could pressure both top-line growth and profitability. Coty is down 26.4% since the beginning of the year, and at $5.05 per share, it is trading 51.6% below its 52-week high of $10.44 from July 2024. Investors who bought $1,000 worth of Coty's shares 5 years ago would now be looking at an investment worth $1,002. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
4 days ago
- Business
- Bloomberg
Stock Movers: Coty, MGM, Lockheed Martin
On this edition of Stock Movers: - Coty (COTY) climbed after Women's Wear Daily reports that the beauty company is looking for buyers. Citi analyst Filippo Falorni writes: 'we acknowledge the possibility of M&A, especially given COTY's valuation, progress on debt deleverage over the last several years with the potential for value unlock from the sale of its Wella stake' - MGM (MGM) Resorts shares gained, as well as shares in Entain, after BetMGM, the sports betting platform the two companies jointly own, raised its full-year guidance. - Lockheed Martin (LMT) shares fell on word that a deal between the US and China on rare earths wouldn't include Lockheed Martin's F-35 planes.
Yahoo
4 days ago
- Business
- Yahoo
Why Is Coty (COTY) Stock Rocketing Higher Today
Shares of beauty products company Coty (NYSE:COTY) jumped 7% in the afternoon session after WWD (Women's Wear Daily) reported that the company is exploring a potential sale. Sources suggested the company was in the very early stages of discussions to potentially sell off its business in two parts, separating its luxury division from its consumer division. This report raised investor optimism about a potential valuation increase for Coty. Is now the time to buy Coty? Access our full analysis report here, it's free. Coty's shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 2 months ago when the stock dropped 9.3% on the news that Bank of America analysts issued a rare double downgrade on the company, shifting their rating from Buy to Sell, signaling a significant deterioration in their outlook. Alongside the downgrade, the firm slashed its price target from $9 to $4.50. The analysts pointed to declining market share, an indication the company was losing ground to competitors, and persistent softness in consumer spending, which could pressure both top-line growth and profitability. Coty is down 26.5% since the beginning of the year, and at $5.05 per share, it is trading 51.7% below its 52-week high of $10.44 from July 2024. Investors who bought $1,000 worth of Coty's shares 5 years ago would now be looking at an investment worth $1,001. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
