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.
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye