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Coty Touts ‘Powerhouse’ Beauty Plan Progress

CEO Sue Nabi told investors at the New York Stock Exchange the beauty company is moving to the second phase of her plan.

Sue Y. Nabi declared that her powerhouse play at Coty’s was working — and setting up the company for continued growth.  

The chief executive officer and her executive team were at the New York Stock Exchange on Thursday, underscoring the strategic plan laid out in April and pointing out to the investment community signs of progress. 

“Although there is much further we can go, I’m delighted to be able to say that we have reclaimed our position as a true beauty powerhouse,” Nabi said at the investor meeting.   

Nabi — a L’Oréal veteran who went on to cofound Orveda before taking the CEO job at Coty in September 2020 — had to hit the ground running at the beauty company, which was going through a tough patch after buying 41 beauty brands from Procter & Gamble in 2016. 

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“The essence of our strategy is simple,” she said. “We concluded that growth through more profitable categories, regions and channels creates a virtuous circle, where we can improve our margins, produce cash, de-lever the company and continue to invest in our brands, and in our people.”

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To get there the company has a number of initiatives underway and a six-part strategic plan that has it working to stabilize and grow its consumer beauty business; accelerate its luxury fragrance business and establish itself in prestige makeup; build a skin care portfolio; enhance e-commerce and direct-to-consumer; expand in China, and build a leadership position in sustainability. 

With work started on all those fronts, Nabi said: “The next step in our journey is to execute our plan and in doing so, add further evidence of Coty’s position as a leading global beauty business.”

Coty is now entering what the CEO described as “the second phase of our journey.” 

“Operationally, this means unveiling our new campaigns in market, landing our innovations effectively, and succeeding in the key white space opportunities we have identified,” she said. “We are off to a great start across all of our initiatives, including Gucci Flora, Burberry Hero, Kylie Relaunch, Lancaster’s momentum in Hainan, CoverGirl and Max Factor market share gains, and Rimmel’s repositioning and entry into clean beauty.”

The company will also be working to improve its gross margins, reinvest in the business and pay down debt. 

Coty’s efforts to build up its skin care portfolio were on full display. 

Nabi said the company signed a license arrangement with Orveda, which she described as “the ultra-premium, multi-awarded, clean, vegan micro-biome focused skin care brand I cofounded with Nicolas Vu several years ago.” 

Vu, the company’s sole owner, will continue lead the business as CEO. 

Coty is also preparing to launch Kim Kardashian West skin care by the end of the fiscal year, having relaunched Kylie Jenner’s Kylie Cosmetics in July with new clean and vegan formulas. 

“We have a portfolio of skin care brands that covers each and every consumer’s need and price point, and importantly covering key trends booming around the world such as ultra premium in China, celebrity-driven in the U.S., and ingredient-led skin care in mass,” Nabi said. 

“The outlook is bright for Coty,” she said. 

Specifically, Coty is looking to increase its net revenues by 6 percent to 8 percent annually through fiscal 2025, ahead of the beauty market generally, which the company pegged for growth of 3 percent to 5 percent. 

Investors seem to be betting Nabi can keep pushing Coty ahead. 

The company has seen its market capitalization more than triple to $9 billion since she took the helm.

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