Coty Weighs Sale or Spin-Off of Mass-Market Beauty Brands

Coty, a prominent player in the global cosmetics industry, is reportedly undertaking a comprehensive strategic review of its mass-market beauty brands, including its well-known flagship, CoverGirl. The company is exploring various options for these assets, which could potentially include outright sales or spinning them off into separate entities, according to a report by The Wall Street Journal on Tuesday. The newspaper cited an internal company announcement it had reviewed as the basis for its reporting.

This strategic evaluation of Coty's mass-market beauty portfolio is not an isolated event but rather a key component of a much broader reassessment of the company's overall business strategy. The move signals a potential significant shift in Coty's operational focus and brand architecture as it seeks to optimize its performance and market position in an evolving beauty landscape.

While The Wall Street Journal's report offers specific insights into Coty's internal considerations, Reuters noted that it could not independently confirm these developments at the time of its publication.