By Martin Shwenk Leade
Copyright indiatimes
Coty said on Tuesday it had launched a strategic review of its consumer beauty business that could lead to the sale of brands such as CoverGirl and Rimmel, as the cosmetics maker plans to focus on its more profitable fragrances unit.The New York-based company had last month projected a quarterly sales decline as demand for its beauty products softened.The firm invested heavily into its U.S. mass beauty business at the expense of fragrance, before shifting course as mass beauty struggled with rising competition from lower-cost online rivals.The move comes as the U.S. mass-market makeup segment faces pressure, with drugstores destocking products as cost-conscious consumers tighten spending and fierce competition from newer brands building a strong following online.Anti-theft measures by U.S. retailers and recent changes in immigration policies have also hurt demand in the mass beauty category, company executives have said. More than a decade ago, Coty paid $12.5 billion for some of these brands in a deal with Procter & Gamble.Live Events”This new structure will… drive renewed momentum and sharper focus for consumer beauty, positioning it to compete more effectively in the evolving beauty landscape,” CEO Sue Nabi said, adding she aims to grow Coty’s prestige portfolio through blockbuster launches and brand elevation.In 2024, the prestige fragrance market was the fastest growing category, up 12%, according to data firm Circana, while the mass-market makeup category declined 3% compared to 2023. Coty is signaling it’s done playing drugstore beauty pageant and wants to sit exclusively at the prestige beauty tabl,” said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors.Add as a Reliable and Trusted News Source Add Now!
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