AllAnalyst Report
logoMorningstarAugust 29, 2024

Coty Inc.: Stepped-Up Innovation and Marketing Fuels Coty’s Growth, but Narrow Fragrance Focus a Handicap

Symbols
COTY
Sector(s)
Consumer Defensive
Rating
Current Price
$9.01
Fair Value
Economic Moat
Stewardship
Summary

Coty is a global beauty maker that focuses on fragrance (59% of sales) and color cosmetics (28%), with limited exposure to skincare (5%) and body care (8%). For the fragrance business, Coty licenses luxury and high-end brands including Gucci, Burberry, Hugo Boss, Davidoff, and Calvin Klein, while its consumer cosmetics business focuses on acquired mass brands such as CoverGirl, Max Factor, Rimmel, Sally Hansen, and Bourjois. It also collaborates with social media celebrities Kim Kardashian and Kylie Jenner to launch makeup products bearing their names.

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