10.25.21
Update: Coty ranks at #11 on our latest report Top 20 Global Beauty Companies 2022.
Coty is #13 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Beauty Sales
$4.7 billion
Key Personnel
Peter Harf, chief executive officer and chairman of the board; Sue Y. Nabi, chief executive officer; Laurent Mercier, chief financial officer; Constantin Sklavenitis chief prestige brands officer; Stefano Curti, chief brands officer; Andrew Stanleick, CEO Kylie Jenner and Coty EVP Americas; Claire Catherine-Mercier, vice president Retail Experience; Gordon von Bretten, chief transformation officer
Major Products
Fragrance, color cosmetics, hair care, skin care and body care products for Luxury and Consumer (Mass). Luxury includes Alexander McQueen, Chloé, Kylie Jenner, Marc Jacobs, Bottega Veneta, Burberry, Calvin Klein, Davidoff, Gucci, Hugo Boss, Escada, Philosophy. Coty Consumer includes CoverGirl, Rimmel, Max Factor, Sally Hansen, Adidas, Nautica.
New Products
CoverGirl Clean Pressed Powder Collection, Sally Hansen Good.Kind.Pure, CoverGirl Lash Blast clean mascara; Sally Hansen Good.Kind.Pure color cosmetics and Miracle Gel Top Coat; Kim Kardashian SKNN, Lancaster Sun Sensitive collection, Calvin Klein Eternity Summer for Women, Daisy Marc Jacobs Eau So Intense
Comments
In a year filled with new appointments and streamlined product offerings, all while aiming to build on a multi-year turnaround plan launched in 2019, Coty sales fell 25% for the year ended June 30, 2021, a decrease of close to $1.6 billion over the prior year. Sales in The Americas accounted for $1.8 billion, a drop of 21% over the prior year. The company put the onus on pandemic and supply chain disruptions for impacting all product categories, pointing to a 60% decline in continuing operations. Coty also cited the negative impact of shelf-space losses in the U.S.—for brands including Rimmel and CoverGirl—and especially in the U.S., the plunge of color trends in general.
The company said Prestige sales were affected most. On the other hand, the pandemic-related closure of nail salons boosted Sally Hansen sales.
EMEA sales topped $2.3 billion for the year; Asia-Pacific accounted for over $582 million.
In an effort to lower Coty’s leverage and strengthen its earnings, in the midst of the pandemic Coty secured a $1 billion direct investment from KKR and entered into an agreement to sell 60% of Coty’s professional and retail hair business (including Wella, Clairol, OPI and ghd brands) for $2.5 billion. To help get the company back on its feet, in June, they hired Sue Y. Nabi, a long-time beauty industry executive with her own successful brand, to take Coty’s reins.
In November 2020, ex-Coty CEO Peter Harf investing $150 million in the company, telling Reuters, “I put my money where my mouth is. I believe in Coty and I believe in Sue [Y Nabi] and I am investing my own money into this company.”
At about the same time, Coty’s iconic CoverGirl brand introduced its new Lash Blast Clean Volume Mascara, billed as their “first clean, sustainable, 100% vegan and cruelty-free mascara to hit mass retailers at an affordable price.”
In December, to alleviate the company’s financial debt, Coty completed its Wella deal receiving $2.5 billion in cash and retaining a 40% stake in Wella.
2021 Highlights
In April, Coty’s Lancaster new Sun Sensitive line received accolades as the first-ever sun care range to receive a Silver C2C Certified Material Health Certificate from the Cradle to Cradle Products Innovation Institute. Sun Sensitive is Lancaster’s first clean, vegan and ocean-friendly collection—all delivered in eco-designed packaging.
Coty also revealed its long-term strategy for other brands, including CoverGirl, which is celebrating its 60th anniversary this year. The brand also revealed that it would focus on its eight top-selling product lines that represent approximately 70% of CoverGirl’s business, according to Nielsen. (The Top 3: Clean (17%), Lash Blast (14%); True Blend (10%) ).
Coty reported that CoverGirl’s Clean portfolio was the reason for the brand’s successful eCommerce strategy during 2020 especially on Amazon. Coty credits the success of CoverGirl’s Clean Fresh Face Makeup and Lash Blast Clean Mascara with propelling the company upward—to become the number two player in “clean” cosmetics. CoverGirl also redesigned its packaging.
In a report to investors, Nabi said: “Across our business, we are harnessing sustainability as the ultimate driver of innovation—enabling our brands to capitalize on growing consumer demand for outstanding beauty products that are clean and green. We intend to use this strategy to build Coty into a truly global beauty powerhouse.”
In Q3 of 2021 (ended March 31, 2021), Coty announced continued improvement in its financial results and early evidence of recovery across its operations. Prestige brands like Gucci, Burberry and Marc Jacobs were standouts, with double digit growth in the quarter, and the Asia Pacific region resumed growth despite the continuing impact of Covid-19.
In May, Simona Cattaneo stepped down from her role as president, Luxury Brands, after five years at Coty.
At the end of May, Coty promoted Andrew Stanleick to CEO for the beauty business created by Kylie Jenner. In addition, Stanleick will also manage Kim Kardashian West’s business for Coty with a focus on driving global expansion and entry into new beauty categories. He continues these new global responsibilities in addition to his current role as Coty EVP Americas.
In June, Coty CFO Laurent Mercier said that the company will streamline its product portfolio in order to increase profitability. Coty is looking to save upwards of $600 million over the next three years, as it appears that consumers have a preference for luxury over mass brands.
In June, CoverGirl touted “their largest sustainability step to date” by announcing a 35% reduction of plastic packaging globally with the new mold of the Clean Pressed Powder Collection. According to the brand, they selected the Clean Pressed Powder Collection—No.1 in the industry—as the first to undergo the packaging reinvention due to its mass appeal and overall impact. Products in the collection include: Clean Pressed Powder, Clean Matte Pressed Powder, Clean Sensitive Pressed Powder and Clean Fresh Pressed Powder.
After two years, Richard Jones stepped down from his role as chief supply officer and head of R&D.
In July, Coty made Beauty headlines with its announcement that it would roll-out a digitally-enabled touch-less fragrance testing device intended for use at beauty retailers within the next 12 months. Coty is partnering with Êverie, a French start-up specializing in smart devices, micro-dosing and diffusion technologies, to bring this touch-less fragrance tester to life. The device deploys a single drop of liquid to the skin with “the same restitution as traditional testers, eliminating unnecessary waste and offering a safe, contact-free alternative for testing.”
Also in July, Coty announced the appointment of Constantin Sklavenitis to the role of chief prestige brands officer, effective September 6. Sklavenitis joins Coty from M·A·C Cosmetics where he was SVP/general manager of North America.
Good news in the final quarter of the year, for Coty. Net revenues rose 80.7% like-for-like to $1.1 million, showing improved growth across all regions—especially in the U.S. and China markets. Revenue in the Americas rose 68.9% in 4Q21 versus the prior year period, due to prestige brand sales, which more than doubled in Q4, with nearly all luxury labels up double-to triple-digits. Mass beauty revenues also increased, up 37.9% in Q4, with growth across every region.
An upbeat Sue Y. Nabi, Coty’s CEO, commented, “Today marks the completion of a transformational year for Coty, as we advance on our journey in strengthening Coty’s position as a global beauty powerhouse. Over the last 12 months, we have built a leadership team of beauty and transformation experts, unveiled and began executing on our multi-year strategy, completed the divestiture Wella, significantly improved our leverage profile, and over-delivered on our savings, revenue, and profit objectives.
“We have ended the year on a high note, with Q4 sales nearly doubling YoY. Sales in the Americas expanded in FY21, and we saw particular strength in the U.S. and China. This a true testament not only to the strength of our prestige brand portfolio, but also to our innovation capabilities, with Marc Jacobs Perfect the best performing U.S. fragrance launch in the industry over the last 3 years, Gucci Guilty Pour Homme and Burberry Her driving market share gains for the beauty brands, and Chloe Atelier des Fleurs solidifying its position as a leading ultra-premium artisanal fragrance collection.”
Read Next: Henkel is #14.
Coty is #13 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Beauty Sales
$4.7 billion
Key Personnel
Peter Harf, chief executive officer and chairman of the board; Sue Y. Nabi, chief executive officer; Laurent Mercier, chief financial officer; Constantin Sklavenitis chief prestige brands officer; Stefano Curti, chief brands officer; Andrew Stanleick, CEO Kylie Jenner and Coty EVP Americas; Claire Catherine-Mercier, vice president Retail Experience; Gordon von Bretten, chief transformation officer
Major Products
Fragrance, color cosmetics, hair care, skin care and body care products for Luxury and Consumer (Mass). Luxury includes Alexander McQueen, Chloé, Kylie Jenner, Marc Jacobs, Bottega Veneta, Burberry, Calvin Klein, Davidoff, Gucci, Hugo Boss, Escada, Philosophy. Coty Consumer includes CoverGirl, Rimmel, Max Factor, Sally Hansen, Adidas, Nautica.
New Products
CoverGirl Clean Pressed Powder Collection, Sally Hansen Good.Kind.Pure, CoverGirl Lash Blast clean mascara; Sally Hansen Good.Kind.Pure color cosmetics and Miracle Gel Top Coat; Kim Kardashian SKNN, Lancaster Sun Sensitive collection, Calvin Klein Eternity Summer for Women, Daisy Marc Jacobs Eau So Intense
Comments
In a year filled with new appointments and streamlined product offerings, all while aiming to build on a multi-year turnaround plan launched in 2019, Coty sales fell 25% for the year ended June 30, 2021, a decrease of close to $1.6 billion over the prior year. Sales in The Americas accounted for $1.8 billion, a drop of 21% over the prior year. The company put the onus on pandemic and supply chain disruptions for impacting all product categories, pointing to a 60% decline in continuing operations. Coty also cited the negative impact of shelf-space losses in the U.S.—for brands including Rimmel and CoverGirl—and especially in the U.S., the plunge of color trends in general.
The company said Prestige sales were affected most. On the other hand, the pandemic-related closure of nail salons boosted Sally Hansen sales.
EMEA sales topped $2.3 billion for the year; Asia-Pacific accounted for over $582 million.
In an effort to lower Coty’s leverage and strengthen its earnings, in the midst of the pandemic Coty secured a $1 billion direct investment from KKR and entered into an agreement to sell 60% of Coty’s professional and retail hair business (including Wella, Clairol, OPI and ghd brands) for $2.5 billion. To help get the company back on its feet, in June, they hired Sue Y. Nabi, a long-time beauty industry executive with her own successful brand, to take Coty’s reins.
In November 2020, ex-Coty CEO Peter Harf investing $150 million in the company, telling Reuters, “I put my money where my mouth is. I believe in Coty and I believe in Sue [Y Nabi] and I am investing my own money into this company.”
At about the same time, Coty’s iconic CoverGirl brand introduced its new Lash Blast Clean Volume Mascara, billed as their “first clean, sustainable, 100% vegan and cruelty-free mascara to hit mass retailers at an affordable price.”
In December, to alleviate the company’s financial debt, Coty completed its Wella deal receiving $2.5 billion in cash and retaining a 40% stake in Wella.
2021 Highlights
In April, Coty’s Lancaster new Sun Sensitive line received accolades as the first-ever sun care range to receive a Silver C2C Certified Material Health Certificate from the Cradle to Cradle Products Innovation Institute. Sun Sensitive is Lancaster’s first clean, vegan and ocean-friendly collection—all delivered in eco-designed packaging.
Coty also revealed its long-term strategy for other brands, including CoverGirl, which is celebrating its 60th anniversary this year. The brand also revealed that it would focus on its eight top-selling product lines that represent approximately 70% of CoverGirl’s business, according to Nielsen. (The Top 3: Clean (17%), Lash Blast (14%); True Blend (10%) ).
Coty reported that CoverGirl’s Clean portfolio was the reason for the brand’s successful eCommerce strategy during 2020 especially on Amazon. Coty credits the success of CoverGirl’s Clean Fresh Face Makeup and Lash Blast Clean Mascara with propelling the company upward—to become the number two player in “clean” cosmetics. CoverGirl also redesigned its packaging.
In a report to investors, Nabi said: “Across our business, we are harnessing sustainability as the ultimate driver of innovation—enabling our brands to capitalize on growing consumer demand for outstanding beauty products that are clean and green. We intend to use this strategy to build Coty into a truly global beauty powerhouse.”
In Q3 of 2021 (ended March 31, 2021), Coty announced continued improvement in its financial results and early evidence of recovery across its operations. Prestige brands like Gucci, Burberry and Marc Jacobs were standouts, with double digit growth in the quarter, and the Asia Pacific region resumed growth despite the continuing impact of Covid-19.
In May, Simona Cattaneo stepped down from her role as president, Luxury Brands, after five years at Coty.
At the end of May, Coty promoted Andrew Stanleick to CEO for the beauty business created by Kylie Jenner. In addition, Stanleick will also manage Kim Kardashian West’s business for Coty with a focus on driving global expansion and entry into new beauty categories. He continues these new global responsibilities in addition to his current role as Coty EVP Americas.
In June, Coty CFO Laurent Mercier said that the company will streamline its product portfolio in order to increase profitability. Coty is looking to save upwards of $600 million over the next three years, as it appears that consumers have a preference for luxury over mass brands.
In June, CoverGirl touted “their largest sustainability step to date” by announcing a 35% reduction of plastic packaging globally with the new mold of the Clean Pressed Powder Collection. According to the brand, they selected the Clean Pressed Powder Collection—No.1 in the industry—as the first to undergo the packaging reinvention due to its mass appeal and overall impact. Products in the collection include: Clean Pressed Powder, Clean Matte Pressed Powder, Clean Sensitive Pressed Powder and Clean Fresh Pressed Powder.
After two years, Richard Jones stepped down from his role as chief supply officer and head of R&D.
In July, Coty made Beauty headlines with its announcement that it would roll-out a digitally-enabled touch-less fragrance testing device intended for use at beauty retailers within the next 12 months. Coty is partnering with Êverie, a French start-up specializing in smart devices, micro-dosing and diffusion technologies, to bring this touch-less fragrance tester to life. The device deploys a single drop of liquid to the skin with “the same restitution as traditional testers, eliminating unnecessary waste and offering a safe, contact-free alternative for testing.”
Also in July, Coty announced the appointment of Constantin Sklavenitis to the role of chief prestige brands officer, effective September 6. Sklavenitis joins Coty from M·A·C Cosmetics where he was SVP/general manager of North America.
Good news in the final quarter of the year, for Coty. Net revenues rose 80.7% like-for-like to $1.1 million, showing improved growth across all regions—especially in the U.S. and China markets. Revenue in the Americas rose 68.9% in 4Q21 versus the prior year period, due to prestige brand sales, which more than doubled in Q4, with nearly all luxury labels up double-to triple-digits. Mass beauty revenues also increased, up 37.9% in Q4, with growth across every region.
An upbeat Sue Y. Nabi, Coty’s CEO, commented, “Today marks the completion of a transformational year for Coty, as we advance on our journey in strengthening Coty’s position as a global beauty powerhouse. Over the last 12 months, we have built a leadership team of beauty and transformation experts, unveiled and began executing on our multi-year strategy, completed the divestiture Wella, significantly improved our leverage profile, and over-delivered on our savings, revenue, and profit objectives.
“We have ended the year on a high note, with Q4 sales nearly doubling YoY. Sales in the Americas expanded in FY21, and we saw particular strength in the U.S. and China. This a true testament not only to the strength of our prestige brand portfolio, but also to our innovation capabilities, with Marc Jacobs Perfect the best performing U.S. fragrance launch in the industry over the last 3 years, Gucci Guilty Pour Homme and Burberry Her driving market share gains for the beauty brands, and Chloe Atelier des Fleurs solidifying its position as a leading ultra-premium artisanal fragrance collection.”
Read Next: Henkel is #14.