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.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion