11.20.21
Coty is making a comeback. That's the word from CEO Sue Y. Nabi in an address to investors at the New York Stock Exchange this week. To see where Coty ranks among The Top 50 US companies, click here.
"Although there is much further we can go, I'm delighted to be able to say that we have reclaimed our position as a true beauty powerhouse," Nabi told investors. "The essence of our strategy is simple. We concluded that growth through more profitable categories, regions and channels creates a virtuous circle, where we can improve our margins, produce cash, de-leverage the company, and continue to invest in our brands and in our people."
The six-part plan includes:
• Stabilize and grow the consumer beauty business;
• Accelerate the luxury fragrance business and establish itself in prestige makeup;
• Build a skin care portfolio;
• Enhance e-commerce and direct-to-consumer;
• Expand in China; and
• Build a leadership position in sustainability.
Easy to proclaim...more difficult to achieve.
"The next step in our journey is to execute our plan and in doing so, add evidence of Coty's position as a leading global beauty business," said Nabi.
That means rolling out new campaigns and succeeding in key white space opportunities. These initiatives include the rollout of Gucci Flora and Burberry Hero, the relaunch of Kylie, Rimmel's repositioning, entry into clean beauty and expanding market share for CoverGirl and Max Factor. Along the way, Coty is working to improve gross margins, reinvest in the business and pay down debt.
In the clean beauty space, Coty recently signed a licensing deal with Orveda, which Nabi described as "the ultra-premium, multiawarded, clean, vegan, microbiome-focused skin brand."
Nabi just so happens to have co-founded the brand with Nicolas Vu several years ago. Vu will continue as CEO.
In other moves, Coty will launch Kim Kardashian West skin care by the end of the fiscal year (June 2022). At the same time, Coty will make gains in China by playing in the prestige beauty space, and build share in the US through its celebrity-backed brands.
According to Nabi, Coty expects to increase net revenue by 6-8% a year through 2025.
"Although there is much further we can go, I'm delighted to be able to say that we have reclaimed our position as a true beauty powerhouse," Nabi told investors. "The essence of our strategy is simple. We concluded that growth through more profitable categories, regions and channels creates a virtuous circle, where we can improve our margins, produce cash, de-leverage the company, and continue to invest in our brands and in our people."
The six-part plan includes:
• Stabilize and grow the consumer beauty business;
• Accelerate the luxury fragrance business and establish itself in prestige makeup;
• Build a skin care portfolio;
• Enhance e-commerce and direct-to-consumer;
• Expand in China; and
• Build a leadership position in sustainability.
Easy to proclaim...more difficult to achieve.
"The next step in our journey is to execute our plan and in doing so, add evidence of Coty's position as a leading global beauty business," said Nabi.
That means rolling out new campaigns and succeeding in key white space opportunities. These initiatives include the rollout of Gucci Flora and Burberry Hero, the relaunch of Kylie, Rimmel's repositioning, entry into clean beauty and expanding market share for CoverGirl and Max Factor. Along the way, Coty is working to improve gross margins, reinvest in the business and pay down debt.
In the clean beauty space, Coty recently signed a licensing deal with Orveda, which Nabi described as "the ultra-premium, multiawarded, clean, vegan, microbiome-focused skin brand."
Nabi just so happens to have co-founded the brand with Nicolas Vu several years ago. Vu will continue as CEO.
In other moves, Coty will launch Kim Kardashian West skin care by the end of the fiscal year (June 2022). At the same time, Coty will make gains in China by playing in the prestige beauty space, and build share in the US through its celebrity-backed brands.
According to Nabi, Coty expects to increase net revenue by 6-8% a year through 2025.