The source said the company’s recent results haven’t “thrilled” and that Coty was waiting until its earnings came out before going to Wall Street.
“It was strictly Coty’s decision,” the source said.
A spokeswoman for the company did not reply to requests for comment by press time.
Coty has taken a circuitous path to the public markets, proceeded by a high-profile but ultimately unsuccessful effort to take over the ailing Avon Products Inc.
When Coty bared its soul, and financial results, to investors in its IPO papers in June, it seemed like Plan B had gone firmly into effect. But then Bernd Beetz, architect of the company’s current success and its longtime ceo, said just a month later that he was handing the torch to Scannavini, then president of Coty Prestige, on Aug. 1.
Observers saw that timing was awkward and sure to give some on Wall Street pause. Investors buying into a company that’s just starting out in the public markets want to know exactly what they’re getting.
Beetz built Coty into a $4.1 billion powerhouse through a series of acquisitions and deals in celebrity fragrance category with stars such as Jennifer Lopez, Madonna, Beyoncé Knowles, Halle Berry and Heidi Klum. He remains on the Coty board as non-executive director and owns 6.2 million shares of the company, giving him a 1.6 percent stake.
Even though the delay of the IPO, some details of which were first reported by Bloomberg News Monday, was said to be an internal matter and not indicative of current market conditions, companies looking to go public have been chastened by Facebook’s very high-profile fumble since its debut in May. The social media darling has seen more than 50 percent of its value evaporate to the whims of investors and what was broadly see as a flawed IPO process.
Even so, it is not unusual for companies to take their time with an offering. Toys ‘R’ Us filed its IPO paperwork in May 2010 and is still waiting in the wings. Neiman Marcus is also courting investors and waiting to take the plunge with a registration filing.
Other companies have also taken a step back from the markets.
In May, the fine jewelry sector saw a chilly wind blow through it when Graff Diamonds Corp. pulled its planned IPO in Hong Kong just as the firm was finishing up its road show in Manhattan. Word trickled out that the high-end jeweler was having trouble receiving orders for the planned offering.
That made Graff the first among the luxury-fashion firms to hit a brick wall despite successful IPOs by Michael Kors Holdings Ltd. and Tumi Holdings Inc. in New York, and Brunello Cucinelli SpA in Milan.
The global equity markets have been volatile throughout much of the summer, given the concerns in Europe over the economies of several nations, including Spain and Italy.
The global economic backdrop is also changing the dynamics of the consumer market in beauty. Core Western markets have seen consumers pull back on the premium products as they deal with economic woes and debt. Emerging markets are where growth is expected, but that strength is still primarily in the mass market sector.
The Coty IPO is being led by Bank of America, J.P. Morgan Chase and Morgan Stanley.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)