Interparfums reportedly interested in Coty's luxury division.
Cosmetics giant Coty is looking to divest two pillars of its business, according to industry sources cited Monday by Women's Wear Daily (WWD). France's Interparfums is said to be in the running for the luxury division.
Coty is reportedly considering the simultaneous sale of its luxury division, which includes prestigious licenses such as Gucci, Hugo Boss and Burberry, and its consumer division, which includes CoverGirl and Max Factor, according to WWD.
On Wall Street, the announcement sent Coty's shares up 7% yesterday at close. However, the stock is still down nearly 25% since January amid a tense economic climate and US trade policy that has been deemed unpredictable since Donald Trump's return to the White House.
In May, Coty already reduced its profit forecasts for the year and postponed its investor day. The group has also launched a strategy to partially relocate its production from Europe to the US, while diversifying its sources of supply outside China. However, it states that its exposure to tariffs remains limited.
According to WWD, exploratory talks are underway with Interparfums regarding the sale of its luxury business; however, these discussions are only at a preliminary stage. The French group, which specializes in the creation, manufacture, and distribution of fragrances, already owns renowned licenses such as Mont Blanc, Jimmy Choo, Lanvin, and Rochas. It was behind the successful Burberry fragrance, which regained its license in 2012 before handing it over to Coty in 2017.
Interparfums specializes in the design, manufacturing and marketing of luxury fragrances. The group's activity is organized primarily around 2 product families:
- fragrance: Jimmy Choo, Montblanc, Coach, Lacoste, Lanvin, Rochas, Karl Lagerfeld, Van Cleef & Arpels, Kate Spade, Boucheron, and Moncler brands;
- women's and men's fashion items: Rochas brand.
Products were being marketed through perfume shops, franchise chains and department stores in France, and through import companies, airports, and airlines abroad.
Net sales are distributed geographically as follows: France (6.4%), Eastern Europe (8.8%), Western Europe (18.1%), North America (38.6%), Asia (12.8%), South America (8.8%), the Middle East (5.8%) and Africa (0.7%).
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