Coty Still Knocking Dust Off P&G Consumer Brands; Luxury Biz Carries Q3
This article was originally published in The Rose Sheet
Luxury and Professional sales gains drove Coty’s top- and bottom-line growth ahead of external expectations in the third quarter, but the sluggish pace of the firm’s major brand renovations, and the investments required to continue propping them up, disappointed analysts.
You may also be interested in...
Coty’s improved second-quarter results, and Pierre Laubies’ remarks in his first earnings call as the company’s chief exec, charmed the investment community, though a detailed strategy from management – including its plan for the ailing Consumer Beauty unit – is still to come.
Coty’s ongoing integration of P&G beauty assets, going on two years after the deal’s completion, has compounded challenges for its Consumer business, which faces a very different market today compared with conditions when Coty outbid rivals for CoverGirl, Max Factor and other P&G castoffs.
For months, Coty leadership has been teasing a "game-changing" Clairol innovation that it expects to reinvent home hair coloring while making a beauty brand of what has been largely "functional" to date. Senior R&D Director Jeff Miller discusses the restaged, "allergy gentle" Clairol Nice'n Easy line, available now at Target.com and slated for a wider rollout in February.