07.01.22
New York, NY
www.coty.com
Sales: $4.6 billion
Key Personnel: Sue Y. Nabi, CEO; Laurent Mercier, CFO; Kristin Blazewicz, chief legal officer and general counsel; Gordon von Bretten, chief transformation officer; Anna von Bayern, chief corporate affairs officer
Major Products: Fragrance, color and skin care products. Coty Luxury—Alexander McQueen, Bottega Veneta, Burberry, Calvin Klein, Chloé, Davidoff, Gucci, Hugo Boss, Kylie Skin, Marc Jacobs, Miu Miu and Tiffany & Co, Lancaster and Philosophy. Coty Consumer—CoverGirl, Max Factor, Rimmel, Sally Hansen, Adidas and Nautica
New Products: Clean Fresh Skincare, Kylie Baby, SKKN by Kim skin care, Sally Hansen Limited Edition Miracle Gel X Friends collection, Marc Jacobs Perfect, Gucci Guilty and Gucci Bloom
Comments: Sales fell less than 2% last year, after plunging nearly 25% in fiscal 2020. The decline in fiscal 2021 was blamed primarily on the pandemic, with the greatest impact on mass market color cosmetics sales. In addition, prestige products in travel retail channels remained significantly impacted due to continued restrictions on leisure travel. But Coty noted that the decrease in demand throughout most of fiscal 2021 was partially offset by the reopening of stores and reduced covid-19 restrictions in Q4, which provided a lift for prestige channel sales. In addition, stronger sales were attributed to a repositioning and reinvestment in mass beauty brands, e-commerce growth and expansion in China. Coty executives also pointed to several successful fragrance launches such as Marc Jacobs Perfect, Gucci Guilty and Gucci Bloom.
By segment, fragrances accounted for 57.4% of sales, followed by color cosmetics (29.3%), and body care and other (13.3%). By region, sales in the Americas rose 5% to more than $1.8 billion. Coty attributed the gain, in part, to the fragrance introductions mentioned here, as well as new brand position and increased support for CoverGirl.
Sales in EMEA fell 5% to nearly $2.2 billion. The decline was blamed on reduced customer traffic in retail malls and travel restrictions.
Asia Pacific sales slipped 1% to $579 million. The primary culprit, again, was travel restrictions, which hit prestige channels particularly hard across the region.
In 2019, Coty embarked on two-year restructuring program that may finally be bearing fruit. For the nine months ended March 31, sales increased 16% to more than $4.1 billion. Sales were driven by like-for-like increases of 22% in prestige and 8% in consumer beauty.
According to CEO Sue Y. Nabi, Coty is benefiting from several category and market tailwinds led by fragrances. But at the same time, the company has faced lockdowns in China, war in Ukraine, inflationary headwinds, and global supply pressures.
“What is clear is that Coty has navigated this complex backdrop very successfully thus far,” concluded Nabi. “We have continued the premiumization of our portfolios in both prestige and consumer beauty, to implement price increases as a means of retaining talent and protecting margins, while also maintaining the necessary flexibility in our supply chain.”
Last month, Kim Kardashian launched SKKN by Kim, a line of “high-performance” skin care in partnership with Coty. The nine-item line includes cleanser, toner, exfoliator, different serums, face cream, eye cream, oil drops and night cream. Prices range from $43 to $95, and every product is available for refill.
www.coty.com
Sales: $4.6 billion
Key Personnel: Sue Y. Nabi, CEO; Laurent Mercier, CFO; Kristin Blazewicz, chief legal officer and general counsel; Gordon von Bretten, chief transformation officer; Anna von Bayern, chief corporate affairs officer
Major Products: Fragrance, color and skin care products. Coty Luxury—Alexander McQueen, Bottega Veneta, Burberry, Calvin Klein, Chloé, Davidoff, Gucci, Hugo Boss, Kylie Skin, Marc Jacobs, Miu Miu and Tiffany & Co, Lancaster and Philosophy. Coty Consumer—CoverGirl, Max Factor, Rimmel, Sally Hansen, Adidas and Nautica
New Products: Clean Fresh Skincare, Kylie Baby, SKKN by Kim skin care, Sally Hansen Limited Edition Miracle Gel X Friends collection, Marc Jacobs Perfect, Gucci Guilty and Gucci Bloom
Comments: Sales fell less than 2% last year, after plunging nearly 25% in fiscal 2020. The decline in fiscal 2021 was blamed primarily on the pandemic, with the greatest impact on mass market color cosmetics sales. In addition, prestige products in travel retail channels remained significantly impacted due to continued restrictions on leisure travel. But Coty noted that the decrease in demand throughout most of fiscal 2021 was partially offset by the reopening of stores and reduced covid-19 restrictions in Q4, which provided a lift for prestige channel sales. In addition, stronger sales were attributed to a repositioning and reinvestment in mass beauty brands, e-commerce growth and expansion in China. Coty executives also pointed to several successful fragrance launches such as Marc Jacobs Perfect, Gucci Guilty and Gucci Bloom.
By segment, fragrances accounted for 57.4% of sales, followed by color cosmetics (29.3%), and body care and other (13.3%). By region, sales in the Americas rose 5% to more than $1.8 billion. Coty attributed the gain, in part, to the fragrance introductions mentioned here, as well as new brand position and increased support for CoverGirl.
Sales in EMEA fell 5% to nearly $2.2 billion. The decline was blamed on reduced customer traffic in retail malls and travel restrictions.
Asia Pacific sales slipped 1% to $579 million. The primary culprit, again, was travel restrictions, which hit prestige channels particularly hard across the region.
In 2019, Coty embarked on two-year restructuring program that may finally be bearing fruit. For the nine months ended March 31, sales increased 16% to more than $4.1 billion. Sales were driven by like-for-like increases of 22% in prestige and 8% in consumer beauty.
According to CEO Sue Y. Nabi, Coty is benefiting from several category and market tailwinds led by fragrances. But at the same time, the company has faced lockdowns in China, war in Ukraine, inflationary headwinds, and global supply pressures.
“What is clear is that Coty has navigated this complex backdrop very successfully thus far,” concluded Nabi. “We have continued the premiumization of our portfolios in both prestige and consumer beauty, to implement price increases as a means of retaining talent and protecting margins, while also maintaining the necessary flexibility in our supply chain.”
Last month, Kim Kardashian launched SKKN by Kim, a line of “high-performance” skin care in partnership with Coty. The nine-item line includes cleanser, toner, exfoliator, different serums, face cream, eye cream, oil drops and night cream. Prices range from $43 to $95, and every product is available for refill.