(Reuters) -Beauty company Coty is seeking buyers for a selloff in two parts, fashion trade publication WWD reported on Monday, citing multiple industry sources. The company intends to sell both its luxury segment, which houses brands such as Hugo Boss, Gucci and Burberry, and its consumer division, including CoverGirl and Max Factor, the report said. […]
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CoverGirl parent Coty exploring sale, WWD reports
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(Reuters) -Beauty company Coty is seeking buyers for a selloff in two parts, fashion trade publication WWD reported on Monday, citing multiple industry sources.
The company intends to sell both its luxury segment, which houses brands such as Hugo Boss, Gucci and Burberry, and its consumer division, including CoverGirl and Max Factor, the report said.
U.S.-listed shares of Coty jumped 7% during afternoon trading. However, the stock has fallen nearly 25% this year as the company grapples with a worsening macroeconomic environment and President Donald Trump’s erratic trade policy.
The company cut its annual profit forecast and postponed its investor day in May, and said that although its tariff exposure was low, it planned to shift some production from Europe to the U.S. while broadening its sourcing of raw materials outside China.
Coty was in discussions with premium perfume maker Interparfums about the sale of its luxury business, the report said, adding that the talks were in early stages.
Coty said it does not comment on rumor and speculation, while Interparfums did not immediately respond to a Reuters request for comment.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Mohammed Safi Shamsi and Alan Barona)