Welcome to our dedicated page for Coty news (Ticker: COTY), a resource for investors and traders seeking the latest updates and insights on Coty stock.
Coty Inc. (NYSE: COTY) is one of the world's largest and most well-established beauty companies. With approximately $9 billion in revenue, Coty is dedicated to celebrating and liberating the diversity of consumers' beauty. The company's strong entrepreneurial heritage has led to the creation of an iconic portfolio of leading beauty brands.
Core Divisions
- Coty Consumer Beauty: This division focuses on color cosmetics, retail hair coloring and styling products, body care, and mass fragrances. Notable brands under this segment include CoverGirl, Max Factor, and Rimmel.
- Coty Luxury: This division is dedicated to prestige fragrances and skincare, representing brands such as Calvin Klein, Marc Jacobs, Hugo Boss, Gucci, and Philosophy.
- Coty Professional Beauty: This segment aims to serve salon owners and professionals in hair and nail care, featuring brands like Wella Professionals and Sebastian Professional.
Market Position
Coty is the global leader in fragrances, second in professional salon hair color and styling, and third in color cosmetics. The company generates about 59% of its sales from fragrances, 28% from color cosmetics, 8% from body care, and 5% from skincare.
Strategic Partnerships and Collaborations
Coty licenses luxury and high-end brand names including Gucci, Burberry, Hugo Boss, Davidoff, and Calvin Klein for its fragrance business. In the consumer cosmetics segment, the company focuses on mass brands acquired over time, such as CoverGirl, Max Factor, Rimmel, Sally Hansen, and Bourjois. Coty also collaborates with social media celebrities like Kim Kardashian and Kylie Jenner to launch makeup products under their names.
Global Reach
Coty operates worldwide, generating close to 45% of its sales from Europe, 42% from the Americas, and 13% from the Asia-Pacific region. The company's controlling shareholder is the German investment firm JAB, holding a 53% stake.
Stay updated with the latest news and developments from Coty Inc. to understand its market performance and strategic initiatives.
Coty Inc. (NYSE: COTY) reported improved financial results for Q2 FY21, achieving an adjusted operating income of $188.4 million, a 7% year-over-year increase. The company's fixed cost savings reached approximately $80 million for the quarter, raising the FY21 savings target to $300 million. Despite a 16% revenue decline due to COVID-19, the Prestige segment showed positive trends with significant retail gains in the U.S. and China. Free cash flow totaled $389.4 million, and financial net debt decreased to about $4.8 billion.
Coty Inc. (NYSE: COTY) has launched a flagship Gucci Beauty store on Tmall Luxury Pavilion, enhancing its reach to over 770 million Chinese consumers. This store will feature a full range of Gucci Beauty products, including popular items like Rouge à Lèvres Mat lipstick. Coty reported a 40% growth in prestige cosmetics retail sales in China last quarter, with Gucci Beauty achieving double-digit growth. The collaboration aims to elevate consumer engagement and streamline the shopping experience for Chinese luxury buyers.
Coty Inc. (NYSE: COTY) announced the planned closure of its manufacturing site in Cologne, Germany, as part of a consolidation of global fragrance operations. Approximately 300 employees will be affected, with the closure expected by Summer 2022. The decision aims to enhance operational efficiency and reduce overcapacity, which has been exacerbated by COVID-19. Coty targets $600 million in cost reductions, with $80 million already achieved in Q1 FY2021. The closure is a step towards a more competitive and streamlined business model.
Coty Inc. (NYSE: COTY) appointed Stéphane Delbos as Chief Procurement Officer, effective February 1, 2021. Delbos, who has been with Coty since 2010, will lead the company's multi-year procurement strategy aimed at achieving $600 million in cost reductions by FY2023. Coty reported $80 million savings in Q1 towards this target. The transformation agenda is crucial for Coty’s long-term growth amidst the ongoing challenges posed by COVID-19. Delbos joins the senior leadership team and will report to Chief Transformation Officer Gordon von Bretten.
Coty Inc. (NYSE: COTY) announced a strategic acquisition of a 20% stake in Kim Kardashian West's business for $200 million, finalizing the deal in Q3 fiscal year 2021. This partnership aims to expand Coty's portfolio into new beauty categories, including a skincare line expected to launch in fiscal year 2022. CEO Sue Y. Nabi emphasized leveraging their strengths for mutual growth, while Kardashian West will guide creative initiatives. The collaboration targets enhancement of a direct-to-consumer beauty brand through established retail and digital channels.
Coty Inc. (NYSE: COTY) has announced the appointment of Anna Adeola Makanju and Mariasun Aramburuzabala Larregui to its Board of Directors, effective December 18th. Makanju brings over 15 years of experience in global policy, while Aramburuzabala serves as CEO of Tresalia Capital and holds various board positions.
The board now consists of a majority of women, with seven out of 13 directors. Former director Paul S. Michaels stepped down after five years of service. CEO Sue Y. Nabi expressed excitement about the new additions, emphasizing their passion for beauty.
Coty Inc. (NYSE: COTY) has announced the promotion of Laurent Mercier to Chief Financial Officer, effective February 15, 2021. Mercier has been with Coty since 2017 and previously served as Deputy CFO, successfully increasing operating income in the Luxury division. His promotion follows the strategic separation of Coty's Professional and Retail Hair business. Mercier aims to focus on cost control and sustainable sales growth, while continuing Coty’s financial turnaround. CEO Sue Y. Nabi expressed confidence in Mercier's leadership as the company seeks to strengthen its financial platform for growth.
Coty Inc. (NYSE: COTY) has appointed Stefano Curti as Chief Brands Officer and promoted Alexis Vaganay to Chief Commercial Officer for its Consumer Beauty division. Curti, with nearly 30 years of experience, aims to enhance brand equity and innovation. Vaganay, who has over 20 years in sales and marketing, will develop Coty's commercial strategy for growing market share in color cosmetics and fragrances. CEO Sue Y. Nabi emphasizes that these appointments strengthen the leadership team to reposition Coty's brand portfolio effectively amidst market challenges.
Coty Inc. (NYSE: COTY) completed the sale of a majority stake in its Professional and Retail Hair business, including brands like Wella and OPI, to KKR on November 30, 2020, receiving approximately $2.5 billion in cash. Coty will retain a 40% stake in Wella, valued at $1.3 billion. With this transaction, Coty's financial net debt is expected to decrease from $7.9 billion to $5.0 billion, enhancing its ability to invest strategically. The divestment is part of Coty's transformation plan to streamline operations and focus on core business areas.
Coty Inc. (NYSE: COTY) announced plans to sell its Professional and Retail Hair business, including brands like Wella and OPI, to KKR, expected to finalize by November 30, 2020. KKR will own 60% of the new Wella entity, while Coty retains 40%, valued at $1.3bn. Coty is set to receive $2.5bn in net proceeds, which it aims to use primarily to reduce its Term Loans A and B, thereby enhancing its capital structure. The sale is part of Coty's strategic restructuring, positioning it for future growth.
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