It's looking like deal time again for Coty Inc.The business is said to be ready to sell 10 fragrance brands: David Beckham, Beyoncé, Enrique Iglesias, Katy Perry, Playboy, Guess, Nautica, Vera Wang, Stetson and Jovan, according to industry sources. In April, Coty sold the Jennifer Lopez fragrance license to Designer Parfums, which also has licenses for Porsche Design and Naomi Campbell.Coty has publicly stated that it wants to exit 6 percent to 8 percent of its business after it closed the deal for 41 beauty brands from Procter & Gamble in October, but hasn't specifically said what it was selling. Asked about the fragrance sale, a spokeswoman for Coty said that company doesn’t comment on M&A rumors.Multiple financial sources said Coty has divided the fragrance licenses into groups for the sale process — celebrity fragrances, which includes Beckham, Beyoncé, Enrique, Katy Perry and Playboy, and designer fragrances, which includes Guess, Nautica, Vera Wang and Stetson. Jovan, which Coty owns, could possibly be sold separately, the sources said.Financial sources valued the group in the hundreds of millions, though indicated all of the brands are suffering from slumping sales. Coty is handling the sale process internally, one source noted, and bids are due in mid-October."There's the designer portfolio and the celebrity portfolio, and you can either buy the whole thing or you can buy the celebrity part or the designer part," one financial source said.Adding an additional layer of complication, nine of the 10 fragrances up for grabs are licensing deals, which means that once a potential buyer got through the Coty bidding process, they would still need to get the OK from the licensor to complete a transaction, sources said.Financial sources indicated that the celebrity portion of the business is considered a particularly hard sell, as sales of most celebrity fragrances have slowed in recent years as consumer desire has shifted towards designer and artisanal scents.One source noted the benefits of scale when buying fragrances, saying that acquiring the whole portfolio would allow the purchaser to make bigger manufacturing orders and get better pricing. But the buyer may need to replace the infrastructure that the brands have at Coty, sources said.Sources named Revlon, former Coty chief executive officer Bernd Beetz, Interparfums and PDC as potential bidders. Revlon declined to comment, Beetz could not be reached for comment, Interparfums said it does not comment on speculation and PDC declined to comment.For Coty, the sale would come as part of the plan to divest a portion of its business following the P&G deal.“With the acquisition, we will have substantially too many brands in the portfolio so there will be some brands [that] will be divested within that portfolio," Coty chairman Bart Becht said at the time the P&G beauty acquisition closed. "It will be in particular the bottom end of the fragrance portfolio — some of the smaller brands we’ll be looking at divesting out of the portfolio.” After the company released its financial results in August, Coty chief financial officer Patrice de Talhouët said the divestment process should be complete by the end of fiscal 2018.The beauty company took on a handful of new fragrance licenses, including Hugo Boss and Gucci, as part of the P&G transaction.
Coty fragrances were spark plugs in the late Nineties through the mid-Aughts, guaranteeing slam dunk launches to the mass market. The company would pump big dollars into debuts — sometimes as much as half of the expected total volume — especially behind the Stetson and Vanilla Fields franchises. Stetson clocked in at sales of at least $100 million at its height, including a host of flankers. Vanilla Fields' sales exceeded $60 million in 1994 and spawned a herd of vanilla-based competitors.
The mass fragrance business started evaporating as more designer fragrances wafted into mass doors — that opened the door for celebrity scents, beginning with the coming of Jennifer Lopez in 2002. Eventually, that category also dried up and some chains even ponder whether the category is worth stocking on a day-to-day basis. Mass market fragrance posted declines in both men's (3.8 percent) and women's (7 percent) in the 12-week period ended August 13, according to IRI data.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
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)