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.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
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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