Driven by its recent poor performance and a battered stock price on the New York Stock Exchange, Coty is set to conduct a strategic review of its Consumer Beauty business, not ruling out divestitures. The group led by Sue Nabi will further integrate its Prestige and Consumer Fragrances businesses, which now account for the bulk of its revenue.
On a downward slope, Coty has decided to reorganize by reviewing its cosmetics division and bringing its two divisions, Prestige and Consumer, closer together, focusing on Fragrances, its main business and positioned in a more promising segment.
In a press release dated September 30, the American cosmetics and fragrance specialist announced the launch of a “comprehensive strategic review of its consumer beauty business to unlock its full potential,” during which “a full range of options, including partnerships, divestitures, spin-offs, and other potential strategic actions” will be explored.
New momentum
The media outlet WWD recently reported on the possibility of the American cosmetics and fragrance specialist spinning off its luxury and consumer divisions to sell them to different buyers.
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Read also > Is Coty up for sale?
Featured photo: © Burberry
