Coty Initiates $1.2B Strategic Review of Beauty Division, Pivots Focus to Fragrance
Global beauty powerhouse, Coty, has initiated a comprehensive strategic review of its consumer beauty division. This move could potentially reshape the company’s $1.2 billion mass color cosmetics portfolio. The review includes major brands such as CoverGirl, Rimmel, Sally Hansen, and Max Factor. Additionally, the company’s Brazilian operations, which generate close to $400 million in revenue, are also under review.
As part of Coty’s strategic shift, the company plans to integrate its prestige beauty and mass fragrance businesses more closely. These sectors already account for 69% of the company’s sales. CEO Sue Nabi has stated that the review will explore:
- Partnerships
- Divestitures
- Spin-offs
- Other potential strategic actions
The aim is to maximize long-term value and strengthen the balance sheet.
Gordon von Bretten, the former Chief Transformation Officer, has been appointed as the President of Consumer Beauty to lead the review. This strategic shift follows Coty’s recent financial challenges. The company has seen annual revenues fall 4% to $5.9 billion in a highly competitive beauty market. Citi has been retained to advise on the comprehensive review process.
Source: Business of Fashion