Below is a look at the company's 2020 highlights, recent acquisitions, best-selling brands, and latest innovations.
- Sue Y. Nabi, chief executive officer
- Peter Harf, founder and executive chairman
- Gordon von Bretten, chief transformation officer
- Simona Cattaneo, president, luxury brands
- Richard Jones, chief supply officer
- Pascal Baltussen, chief global procurement officer
- Fiona Hughes, president, consumer brands
- Bottega Veneta, Burberry, Calvin Klein
- Chloé, Gucci, Hugo Boss
- Tiffany & Co, Marc Jacobs, Miu Miu
- Wella, OPI, ghd
- System Professional, Nioxin, Sassoon
- Sebastian, Clairol, CoverGirl
- Clairol, Rimmel, Adidas
- Bourjois, Sally Hansen, Max Factor
- Wella, Monage, Risqué, Bruno Banani
- Katy Perry, James Bond 007, Mexx
- Nautica Fragrances, Biocolor, Bozzano
- Cenoura & Bronze, Paixão
- CoverGirl Clean Fresh, Calvin Klein Women
- CK Everyone, Gucci Bloom Nettare di Fiorgi
- Gucci Guilty Pour Femme, Gucci Alchemist Garden
- Kylie Skin (Europe), Kylie Cosmetics and Burberry beauty
- Marc Jacobs Perfect
According to Coty’s year-end results issued in August, Covid-19 has taken a sizable bite out of the company’s fiscal 2020 net revenues, which decreased 22%. Fourth quarter, like-for-like figures also indicated a decline of 53% for Total Coty and 60% for Continuing Operations, which excluded the revenues and directly attributable costs of the to-be-divested Wella business.
Regionally, Coty’s Americas territory net revenues of $1.7 billion (38% of total Coty continuing operations) decreased by 21.3% versus the prior year. On a like-for-like basis, Americas net revenues decreased by 21.5%. Sales through the first half of the fiscal year were in line with Coty’s expectations, however. the company acknowledged.
Despite the challenge of withstanding the Mass beauty market pressures and shelf space losses within its Mass beauty business, Coty’s U.S. Mass cosmetics gained market share online and offline. CoverGirl U.S. provided a boost with the launch of Clean Fresh, and Sally Hansen generated strong growth on and offline, thanks to the launch of “Good.Kind.Pure,” which premiered in December 2019; it has been the No. 1 color cosmetics launch since December 2019. Strong prestige performances were also turned in by Gucci, Burberry and Tiffany.
The most notable development to boost U.S. sales was Coty’s Kylie Beauty partnership with reality TV personality, Kylie Jenner. Despite Covid-19 related issues to the brand’s third-party manufacturer’s fulfillment center in Coty’s 4Q20, Kylie Skin remained operable during the quarter, generating solid sales growth.
In June, Coty announced a $200 million deal with Kim Kardashian West to help broaden the reality show superstar’s product and category offerings as well as develop her beauty business globally. Coty will have a 20% ownership interest and will have overall responsibility for the portfolio’s development in skin care, hair care, personal care and nail products. The acquisition is expected to close in the third quarter of 2021.
June was also marked by the announcement of a strategic transaction with KKR for Coty’s professional and retail hair business, spanning the Wella, Clairol, OPI and ghd brands, valuing the businesses at $4.3 billion on a cash- and debt-free basis. KKR will own 60% of this separately managed entity and Coty will own the remaining 40%. As previously announced, KKR is investing $1 billion directly into Coty through the issuance of convertible preferred shares. The sale of a majority interest in the professional and retail hair business effectively simplifies Coty’s portfolio, allowing Coty to focus on its core Prestige and Mass beauty businesses.
Effective September 1, 2020, Sue Y. Nabi serves as newly appointed chief executive officer, charged with spearheading Coty’s transformation. Peter Harf will be elevated to the role of executive chairman. Nabi is founder and CEO of Orveda, a new-age luxury skin care line, and previously served as worldwide president of both L’Oréal and Lancôme during her 20-year tenure at L’Oréal.
Coty reported seeing gradual sales trend improvement from April through June, with “significant” improvements in July and August across the portfolio. Peter Harf, Coty’s founder and executive chairman, said the company had set “rigorous objectives” for fiscal 2021 and expected a return to profitability by the first quarter of 2021.
In a global town hall address, new CEO Nabi stated Coty would become more “product-centric” and “maximize the cache” that comes with its brand partners, Kylie Jenner and Kim Kardashian West.
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