|Bid||11.23 x 800|
|Ask||11.30 x 2900|
|Day's Range||11.17 - 11.39|
|52 Week Range||8.61 - 14.14|
|Beta (5Y Monthly)||0.55|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.50 (4.38%)|
|Ex-Dividend Date||Feb 13, 2020|
|1y Target Est||N/A|
(Bloomberg) -- Coty Inc. has kicked off the sale of its professional hair and nail products business, drawing interest from some of the world’s largest buyout firms for a unit that could fetch as much as $8 billion, according to people with knowledge of the matter.Buyout firms including Advent International, Bain Capital and Cinven are working with advisers to prepare bids, the people said, asking not to be identified because the discussions are private. Clayton Dubilier & Rice LLC and KKR & Co. are also expected to make first-round bids, which are due the first week of March, the people said.Henkel AG, a German maker of adhesives and shampoos, has hired advisers as it explores a bid for the business, which could fetch $7 billion to $8 billion, the people said. Other strategic bidders including Unilever Plc are weighing offers for parts of the unit, the people said. No final decisions have been made and the talks about a sale remain in the early stages, the people said.The sale is expected to be one of the most hotly contested auctions involving buyout firms this year because they have record levels of capital to spend and access to cheap financing. In a transaction last year that drew a similar buyer universe, EQT beat out stiff competition to acquire Nestle SA’s skincare business for more than $10 billion.Coty is weighing the sale of the unit, which owns brands including Wella, as part of a plan by Chief Executive Officer Pierre Laubies to turn around the wider business by boosting margins and reducing leverage. The New York-based firm took a $965 million writedown last year on the value of brands, including Clairol, that it agreed to purchase from Procter & Gamble Co. in 2015. Coty’s shares have fallen about 48% in the last five years.Coty has launched a process to explore strategic alternatives for the unit and aims to complete the review by the summer, it said, referring back to an October announcement. Representatives for Henkel, Unilever and the buyout firms declined to comment.Coty’s advisers are offering cash-paid leverage of about 6.5 times to help buyout firms finance the acquisition, one of the people said. The businesses for sale have earnings before interest, taxes, depreciation and amortization of about $450 million, and that number could rise to well over $500 million after including the gains from the carve-out and cost cuts, the person said.Staple financing is a pre-agreed debt package provided by banks chosen by the vendor to all competing bidders during an M&A sale process. The debt financing that was raised for EQT’s buyout of Nestle skincare was levered at 7.2 times total debt to core earnings. Prior to that, banks provided staple financing for the auction of Unilever’s spreads division that was levered at 5.25 times, while the final debt package used by KKR for the buyout was 6.2 times the total.Coty is selling brands including Clairol, Good Hair Day and OPI nail care as well as its business in Brazil. Cosmetics company Boticario Group is considering a bid to boost its haircare business, CEO Artur Grynbaum told Valor newspaper earlier this month.Some of the biggest beauty companies have been on an acquisition spree in recent years as they seek to court younger shoppers with upstart brands. Coty itself agreed to pay $600 million in cash for a majority stake in Kylie Jenner’s cosmetics line last year.(Adds details on Brazil sale in second-to-last paragraph)\--With assistance from Jan-Henrik Förster, Myriam Balezou, Sally Bakewell, Thomas Buckley, Oliver Sachgau, Sarah Husband, Michael Hytha and Ruth McGavin.To contact the reporters on this story: Dinesh Nair in London at firstname.lastname@example.org;Aaron Kirchfeld in London at email@example.comTo contact the editors responsible for this story: Aaron Kirchfeld at firstname.lastname@example.org, Neil CallananFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Solid brand performances, innovations and strong consumer demand are aiding Coty's (COTY) Luxury business. However, challenges in the Consumer Beauty unit persist.
The number of coronavirus deaths and cases in China continues to rise. There are at least 490 deaths and 24,324 cases of coronavirus in China, according to the latest figures from China’s National Health Commission.
Coty Inc. -- the makeup and perfume company -- is up sharply Tuesday on the heels of its second-quarter earnings that beat earnings per share and revenue estimates. In this daily bar chart of COTY, below, we can see Tuesday's gap up and over the declining 50-day moving average line and the bottoming 200-day moving average line. Trading volume is not up significantly and the daily On-Balance-Volume (OBV) has been neutral since July.
STOCKSTOWATCHTODAY BLOG Higher Still. The three major U.S. stock-market indexes rose as investors reacted optimistically to reports that drugs have been found to treat coronavirus. The Dow Jones Industrial Average gained 351 points, or 1.
Coty Inc. shares jumped 8.7% in Wednesday premarket trading after the beauty company reported fiscal second-quarter earnings and revenue beat that expectations and gave upbeat guidance. Net losses totaled $21.1 million, or 3 cents per share, after a loss of $960.6 million, or $1.28 per share, last year. Adjusted EPS was 27 cents, ahead of the FactSet consensus for 24 cents. Revenue totaled $2.35 billion, down from $2.51 billion but ahead of the $2.34 billion FactSet consensus. "Our turnaround plan has now been underway for two quarters, and we are confident that the actions we are taking will build a much healthier business and growth," said Pierre Laubies, chief executive of Coty, in a statement. Coty brands include Gucci, Tiffany, Rimmel, Sally Hansen and Kylie Jenner. Coty expects fiscal 2020 revenue to be flat to slightly lower, and mid-single digit EPS growth. The FactSet consensus is for revenue of $8.22 billion, implying a 4.9% decline, and EPS of 67 cents, suggesting a 3.5% increase. Coty stock has gained 36.2% over the past year while the S&P 500 index is up 20.5% for the period.
Soft Consumer Beauty unit and supply chain hurdles are likely to get reflected in Coty's (COTY) performance in Q2. Nevertheless, robust Luxury segment and transformation efforts bode well.
Coty (COTY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Helen of Troy's (HELE) Q3 earnings and sales increase year over year on strength in the Housewares and Beauty segment. However, the Health & Home segment looks troubled.
Procter & Gamble (PG) intends to buy Billie to further boost its women's care portfolio. This is likely to enhance its grooming business.
Coty Inc. and celebrity Kylie Jenner said late Monday Christoph Honnefelder will be the chief executive of their $600 million beauty tie-in, Kylie Cosmetics and Kylie Skin, "in the near future." Honnefelder most recently worked at European beauty retailer Douglas. The Coty-Jenner deal was announced in November, and both parties said Monday the transaction is completed and ready to "jointly build and further develop Kylie's existing beauty business into a global powerhouse brand." Shares of Coty rose 1.8% in the extended session Monday after ending the regular trading day down 1.9%.
(Bloomberg Opinion) -- On Oct. 6, 2010 — the first year of the decade now drawing to a close — the following headline appeared above a modest 445-word article on a tech-industry website: “Instagram Launches With the Hope of Igniting Communication Through Images.”It’s an almost comically quaint description of exactly what the company has done over the past nine years. On its way to amassing more than a billion users, Instagram has become many things: a joyful storehouse of family photos, a sledgehammer for celebrity tabloid culture, a shadowy abyss of teen bullying. Oh, and it has also become the most powerful force in shaping commerce this side of Amazon.com Inc.The smartphone app has notably served as a platform for new forms of consumer marketing. But its influence on spending is far more profound. Because everyone now lives their lives on camera, Instagram has played a crucial role in altering both the look and nature of products people buy and the physical spaces where they shop.Certain items were elevated to the must-have list this decade because they were shareable — that is, they photographed especially well or had a flair of whimsy that racked up the likes and comments. So the Ugly Christmas Sweater went from ironic joke to something Walmart Inc. had to stock in droves, while matching family pajamas invaded department stores.Product designers and merchants have gotten wise to this dynamic and have responded in kind. They brought shoppers pool floats shaped like swans and floppy sun hats with cursive kiss-offs like “Do Not Disturb.” They served up eye-catching rainbow bagels, Unicorn Frappuccinos and latte art. They scored with kids’ games such as Pie Face that were perfect for video snippets.“Bride Tribe” tank tops. Mermaid toast. “Live Laugh Love” wall art. It is doubtful any of these things would even exist if not for Instagram.In some cases, whole product categories have benefited from the photo-centric world that Instagram has created. The beauty business had several booming years this decade, powered by trends such as contouring and strobing that made women feel duck-face-ready. Sales of houseplants skyrocketed as Millennials outfitted their homes with fiddle-leaf figs that lent an artful flourish to photos.And then there are the stores themselves — if that’s still the correct term in the Instagram era. Retailers have created spaces that are alluring sets for photos, such as Tiffany & Co.’s addition of a robin’s-egg blue café to its Manhattan flagship and Canada Goose’s “cold room” sprinkled with real snow. Concepts like Museum of Ice Cream and Rosé Mansion aren’t so much stores as gallery-museum-commerce crossbreeds built on the back of Instagram.Meanwhile, restaurateurs have adapted the lighting in their dining rooms to be conducive to photos, knowing diners’ pictures are among their most powerful marketing tools. Splashy lettering, loud wallpaper, neon signs — these have become the default aesthetic of eateries looking to nab a spot in Instagram feeds.Restaurants are just one component of the so-called “experience economy,” a broader category of consumer spending that has been utterly upended by Instagram. The vacation-photo arms race has led to certain picturesque landmarks being choked by visitors and public lands being degraded. Hotels are also being forced to adapt. Industry giant Marriott International Inc., for example, debuted in 2014 a chain called the Moxy, where guests can opt to have their tiny rooms festooned with photo-friendly inflatable flamingos.Perhaps Instagram’s most peculiar commercial influence has been its role in creating entirely new spending occasions, particularly around life milestones. Maternity photo shoots have become commonplace; so have birth and newborn photo shoots. Same for “Trash the dress” and home-buying photo shoots. Some of these rituals started becoming trendy before Instagram’s rise, but it is the app that has cemented them as an ordinary thing to drop hundreds (or thousands) of dollars on.Relatedly, there now exists a weird species of consumer goods that no one needed before they revealed big news via a visual medium. Search Etsy for “pregnancy announcement props,” and you’ll find thousands of items: chalkboard-style signs, pacifiers and dog outfits emblazoned with baby announcements. You’ll find similar props to herald engagements, gender reveals and birthdays by photo.All of this is before contemplating what an essential tool Instagram has become for brand advertising. So-called influencers — a class that includes both Hollywood actresses and suburban moms with fewer than 10,000 followers — have perfected the art of hawking everything from fashion to protein drinks to tampons to credit-card rewards programs to their audiences in exchange for fees or free gear.In a $600 million testament to Instagram’s power as a marketing platform, beauty industry giant Coty Inc. took a majority stake this year in Kylie Cosmetics, the makeup brand that Kardashian clan member Kylie Jenner had made a hot seller largely thanks to clever promotion on the app. Fast-growing digital upstarts such as Fashion Nova and Revolve Clothing provide additional powerful examples of Instagram’s ability to put a brand on the map. Instagram’s impact on shopping in the 2010s isn’t as easily quantified as that of Amazon. The online retailer’s transformative role can be seen in its estimated 38% share of the U.S. e-commerce market, a market value that briefly touched $1 trillion and CEO Jeff Bezos’s No. 1 or No. 2 spot on Bloomberg’s Billionaire’s Index.What Instagram did is change consumer culture. It turned shoppers into a performative swarm of shutterbugs presenting Clarendon-filtered (or maybe Juno-filtered?) versions of themselves and their surroundings to their followers. It changed not only how things are bought and sold, but why. When period-piece movies are someday made about the 2010s, the aesthetics used to evoke this decade— all-white kitchens, neon-colored foods, major sleeves — will be the ones that sparkled in Instagram’s onscreen world. Real life never looked quite so glossy.To contact the author of this story: Sarah Halzack at email@example.comTo contact the editor responsible for this story: Michael Newman at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Coty's (COTY) solid brand performance, innovations and consumer demand in the Luxury segment might help it retain a strong run in 2020.