Key Takeaways:
Following a challenging year, including rumors that Coty is looking to sell off parts of its business, the company is doubling down on the category that drives the majority of its revenue and profit: fragrance.
On September 30, the company announced plans to more closely integrate its prestige beauty and mass fragrance operations—together representing 69% of sales—to “unlock the full power of our scale,” Coty CEO Sue Nabi said in a press release. At the same time, Coty initiated a comprehensive strategic review of its consumer beauty business, with the stated goal of maximizing long-term value and strengthening its balance sheet.
“This next phase of our transformation is about clarity and focus,” Nabi said. “The fragrance category continues to outperform the global beauty market … Coty has a proven right to win at all price points of scenting, from $5 to $500, and is already making strong headway in the exciting new $7 billion mist market.”
By collapsing silos between prestige and mass fragrance, Coty plans to centralize and scale research and development, consumer insights, manufacturing, and distribution. The integrated model is designed to accelerate blockbuster launches, tighten innovation cycles, and extend consumer reach from entry to ultra-premium price tiers.
Coty also reaffirmed that prestige cosmetics and skincare will continue to expand “with strong margin potential,” supported by the company’s IP portfolio and advanced formulations.
What’s Next for Coty’s Consumer Beauty Division
Simultaneously with the fragrance integration, Coty is conducting a strategic review of its consumer beauty business, with newly appointed board member and former Chief Transformation Officer Gordon von Bretten stepping in as President of Consumer Beauty and joining the Executive Committee. He will oversee day-to-day operations and lead the review.
The review will focus on two main areas: mass color cosmetics (~$1.2 billion revenue), including brands like CoverGirl, Rimmel, Sally Hansen, and Max Factor; and Coty’s Brazil portfolio, which is comprised of a collection of local brands that generate around $400 million in revenue. Alternatives on the table include partnerships, divestitures, spin-offs, and other strategic actions. Coty has retained Citi as its financial advisor. The company said it will update the market as the board approves decisions.
“Our agenda is clear,” von Bretten said. “Realize the full potential of our market-leading brands by focusing the portfolio, elevating product excellence, and driving productivity with discipline so that performance is visible in growth, margin expansion, and cash generation.”
As part of the organizational restructuring, Stefano Curti, Chief Brands Officer, Consumer Beauty, and Alexis Vaganay, Chief Commercial Officer, Consumer Beauty, will step down from their roles. Nabi thanked both executives “for their contributions and commitment … over the last five years.”
The announcement comes as fragrance continues to outpace broader beauty growth. Aligning prestige and mass under one operating spine positions Coty to capitalize on cross-tier consumer demand, from accessible body mists to luxury eau de parfums. A unified fragrance engine can concentrate investment behind fewer, bigger bets; streamline procurement and fill-finish; and amplify media and sampling across channels.
Reviewing Consumer Beauty—especially mass color and the standalone Brazil unit—creates latitude to reshape the portfolio, reduce complexity, and reallocate capital toward higher-growth, higher-margin segments. Any combination of partnerships, carve-outs, or sales could improve leverage metrics and fund strategic priorities (like the fragrance scale, prestige skin/cosmetics, and mist expansion).
The Bigger Picture
In August, Coty released its fourth-quarter results for 2025 (Q4 2025), which aligned with the company’s projections. During the earnings call, Coty’s Chief Financial Officer, Laurent Mercier, emphasized the company’s position in the prestige fragrance sector. Prestige fragrances represented a $3.5 billion business for the company, achieving a strong compound annual growth rate (CAGR) of +10% between fiscal years 2021 and 2025. Over the same period, Coty also reported a 2% net revenue CAGR in Consumer Beauty sales.
Coty stands out as the sole global fragrance company to actively target both high and low price points. The company is experiencing growth across the fragrance market, with fiscal year 2025 like-for-like sales increasing by 9% in ultra-premium fragrances, 2% in prestige fragrances, and 8% in Consumer Beauty fragrances.
Coty is realigning its fragrance production due to the evolving global tariff environment. The company plans to move the manufacturing of mass fragrances, entry-level prestige fragrances, and related products sold in the US to its American plant.
Currently, consumer beauty products, primarily made in the US, account for approximately 12% of Coty's global sales. Prestige fragrances, mainly manufactured in Europe, account for approximately 16% of global sales.
“We are returning to our cadence of blockbuster launches. ... We have unleashed a major attack plan in the affordable, complementary, and strongly profitable fragrance mists category, with mist launches across more than a dozen of our brands rolling out in the coming 12 months,” Nabi said on the August earnings call.
Coty is steering the company around its strongest center of gravity—fragrance—while creating strategic flexibility for the rest of the portfolio. If execution matches ambition, the move could sharpen competitiveness across price tiers and simplify the path to profitable growth.
