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yesterday

Coty Explores Two-Part Sale of Luxury and Consumer Units

Early talks with Interparfums focus on Coty’s luxury fragrances, highlighting urgency from sliding sales, an expiring Gucci license, a downturn in its consumer division.

Covergirl makeup, owned by Coty Inc., is seen for sale in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo
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Overview

  • Coty has begun preliminary talks to sell its Luxury division, home to brands such as Gucci and Burberry, and its mass-market Consumer division separately.
  • Industry sources report that Interparfums has made an offer for Coty’s Burberry fragrance license and is likely to pursue Hugo Boss scents through a strategic partnership.
  • Coty’s Consumer beauty net revenue fell 9 percent in its third quarter while total net revenues dropped 6 percent to $1.29 billion, reflecting heightened competition.
  • The Gucci fragrance and beauty license held by Coty runs through 2028, after which parent company Kering is expected to bring the label’s fragrance operations in-house.
  • Coty’s stock has plunged 30.7 percent year-to-date, weighed down by a $71.1 million loss on the divestiture of Skkn by Kim Kardashian’s beauty business.