Coty Consumer Division Shows Some Signs of Stabilization

Coty Inc.’s consumer division, which houses Cover Girl, Rimmel and other mass market beauty brands, may be showing a glimmer of hope. While the segment was still down in Coty’s most recent quarter, things appeared less bad than they historically have been. In an early-morning interview with WWD on Wednesday, Coty chief financial officer Pierre-André Terisse called out improvements. “The performance of consumer beauty, which is not where we would like it to be ultimately, but which has been improving — we are delivering a minus 6.5 percent, which is approximately one point above the previous quarter,” Terisse said, speaking in like-for-like figures. “It’s been the highest for the past six quarters.” The signs of improvement — Coty executives are referring to them as “green shoots” — are still small. Max Factor is doing well in Germany again, for example, and Rimmel is back to making market share gains in the U.K., Coty executives said. Sally Hansen is doing well in the U.S. again. The small wins are in part due to a shift in Coty’s advertising strategy implemented by the current management team. Coty chief executive officer Pierre Laubies said the company is moving away from hyper-targeted advertising campaigns, and running things that

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