Coty Prepared For Possibility That COVID-19 Revenue Recovery Could Be Years Away
The beauty giant says it is selling its Professional Beauty and retail hair-care businesses to global investment firm KKR and targeting $700m in cost reductions over the next two and a half years. Coty already was in transformation mode prior to COVID-19, which drove a 23% decline in its third-quarter net sales, and it does not expect revenue levels to normalize anytime soon.
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Fabric & Home Care sales jumped 11% for the quarter, and Baby, Feminine & Family Care, 3%, reflecting consumer priorities during the COVID-19 pandemic. Beauty, impacted by travel retail’s nosedive, and Grooming, something consumers are doing considerably less of at home, were less impressive, but the units still grew in fiscal 2020 overall.
Recent surveys from consulting, retail analytics and e-commerce logistics firms support the views of leading beauty and personal-care companies that are modifying their approaches in light of consumers’ changing means and preferences during COVID-19.
Sue Nabi’s success at L’Oreal, where she headed the firm’s global L’Oreal Paris and Lancome businesses, her skin-care savvy as founder of the luxury, “clean, green and vegan” Orveda, and her experience as a career champion of diversity were major draws for Coty, where she begins as CEO on 1 September.