Coty Inc.
COTY,
on Friday outlined a plan to boost its luxury skincare, fragrance and cosmetic lines with contributions from Gucci and Burberry. In a statement released ahead of an investor day, the company said it is aiming to reposition and rejuvenate some of its brands, including CoverGirl, Rimmel and Max Factor with new marketing campaigns and an emphasis on sustainability. In China, the company is aiming that by fiscal 2025, skincare will account for about 10% of its revenue mix, up from about 6% currently; for prestige cosmetics to increase to a high single-digit percent from about 3% currently; and for China’s contribution to triple to more than 10% of the revenue mix. “With Prestige fragrances, Prestige cosmetics, skincare and China operations delivering above-corporate margins, this targeted portfolio mix is expected to drive profitability and margin expansion,” the company said. Other plans include bringing new female fragrances to market and expanding its line of artisanal fragrances. The company reaffirmed guidance of revenue of $4.5 billion to $4.6 billion for fiscal 2021. Shares were slightly lower premarket, but have gained 31% in the year to date, while the S&P 500
SPX,
has gained 10%.
