Coty Chips Away At Post-Merger Brand Challenges, With Investors Getting Restless

11 Nov 2016

CoverGirl, Max Factor and other pickups from P&G through the firms’ recently closed merger were “neglected” for two to three years as the deal was coming together and being executed, doing no favors for Coty’s newly combined Consumer Beauty business. However, Coty has dispensed with organizational work and is focused on driving growth, management says, projecting improvements in the back half of the year.

Maintaining that fiscal 2017 is a transitional year for Coty, Inc., company leadership is optimistic about momentum in its professional and luxury units while cautioning investors that consumer beauty is more of a work in progress.

The New York-based beauty firm reported FY 2017 first-quarter net revenue of roughly $1.1bn for its standalone business, representing a...