11.53 0.00 (0.00%)
After hours: 5:21PM EST
|Bid||11.52 x 2200|
|Ask||11.54 x 1800|
|Day's range||11.53 - 11.97|
|52-week range||5.91 - 14.14|
|Beta (3Y monthly)||0.75|
|PE ratio (TTM)||N/A|
|Earnings date||6 Feb 2020 - 10 Feb 2020|
|Forward dividend & yield||0.50 (4.22%)|
|1y target est||12.92|
(Bloomberg) -- A deal by one the world’s largest makeup brands to back a venture by a member of reality television’s royal family was a coup for a little-known firm that advised Coty Inc.When Coty announced its $600 million investment for the majority stake in Kylie Jenner’s cosmetics company this week, it said it tapped Tiger Chark LLC, an adviser that had not been publicly connected to a deal before.Tiger Chark acted as a matchmaker connecting Coty to Kylie Jenner, a member of the Kardashian-Jenner clan, and also as a brand consultant, people familiar with the matter said, asking not to be named because the matter is private.Tiger Chark wasn’t involved in the deal negotiations and is not a financial adviser in the traditional sense, the people added.Lisa Manice, Tiger Chark’s founder, has worked with Coty and Peter Harf, the chairman of Coty’s majority owner JAB Holdings BV, for some time, one of the people said.“When Peter Harf told us about the executive team’s vision for Coty’s future, we began exploring opportunities and soon came to believe that Kylie would be the perfect fit,” Manice said in an e-mailed statement.A Coty representative declined to comment.Tiger Chark, based in Manhattan’s Upper East Side, was founded in 2016 by Manice, a graduate of the University of Pennsylvania’s Wharton School of Business.The firm is a “strategic brand consulting firm” that develops “broad visions for consumer products,” Manice said.She added that the firm provides “millennial insight with the sage advice of industry experts.”Manice was listed as a co-chairwoman of a May event hosted by a blood cancer charity started by Harf.The services on its pastel-shaded website include capital raising, mergers and acquisitions, joint ventures, licensing, brand growth and business development.Joanna Baker de Neufville, the firm’s second in command, was co-chief operating officer at footwear company Tamara Mellon, a namesake brand founded by a co-founder of Jimmy Choo. Baker de Neufville was an analyst at Goldman Sachs Group Inc. from 2001 to 2003, according to her LinkedIn profile.The firm has five employees listed on LinkedIn.\--With assistance from Polly Mosendz and Sonali Basak.To contact the reporters on this story: Crystal Tse in New York at email@example.com;Kim Bhasin in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Coty Inc. just turned into Koty Inc.The American beauty group controlled by Germany’s billionaire Reimann family has agreed to pay $600 million for a majority stake in the cosmetics brand founded by Kylie Jenner, the youngest member of the Kardashian-Jenner clan. The deal, in which Coty will acquire a 51% stake, values Jenner’s Kylie Cosmetics business at about $1.2 billion, not bad for the line of lip kits the reality TV star created when still a teenager.You can see why Coty is paying up for a piece of the “Konsumer” action. Jenner, with 270 million social media followers is at the vanguard of the celebrity-influencer beauty industry, where company founders engage their fans via Instagram and YouTube and turn them into customers. Jenner — alongside other new media stars such as pop singer Rihanna, who’s partnered with LVMH Moet Hennessy Louis Vuitton SE, and the makeup artist Huda Kattan — is reshaping the beauty industry. Traditional cosmetics houses need to find ways to keep up. The mass beauty market, in which Coty has brands such as CoverGirl and MaxFactor, has been hit hard by the celebrity competition.Coty’s deal values Kylie Cosmetics at 6.7 times the last 12 months’ revenue. That compares with the 3.6 times multiple paid by Sweden’s EQT Partners for Nestle Skin Health, a brand catering for a slightly older demographic. It seems contouring for millennials is twice as valuable as hiding crow’s feet.Jenner’s company sells only make-up and skincare products currently; Coty will license it fragrances and nail merchandise too. If the new parent can broaden Kylie’s appeal into everything from false eyelashes to gel nail varnish, and pump them through its global distribution network, then it has a chance of bolstering revenue and squeezing value from the deal price. The business is already growing quickly and has an Ebitda margin of more than 25%.The danger of buying a “name” brand is that fashion is fickle. Coty’s purchase assumes that Kylie will keep inspiring young women to highlight their cheek bones and plump their lips. Yet what if she falls from favor with her young followers, who move onto the next Instagram or TikTok sensation. Already we may be past peak Kardashian, with the family’s TV show now into its 17th series.Coty is eager to stress that this is a partnership, and that Jenner will remain heavily involved. But operating inside a behemoth is very different to being an entrepreneurial startup.Let’s not forget the fate of the celebrity fragrance boom that emerged in the 2000s. These products are waning in popularity as millennials demand more personalized and artisanal scents. Coty itself has been moving away from some traditional collaborations, for example stopping producing perfumes for Jennifer Lopez, Lady Gaga and Celine Dion — although it still has Katy Perry in its stable.Yet perfume tie-ups were for the analogue age; capturing a Kardashian is for the digital era. Investors will hope that doesn’t also mean an acceleration of the process of falling out of fashion.\--With assistance from Chris Hughes.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Coty Inc. agreed to pay $600 million in cash for a majority stake in Kylie Jenner’s cosmetics line, the latest move by a major beauty company to acquire trendy brands that appeal to a younger clientele.The makeup and fragrance giant will have overall responsibility for the portfolio, while Jenner, part of the Kardashian clan, will lead creative efforts and communications, the companies said Monday. The deal values Kylie Cosmetics, which Jenner, 22, started in 2015 as a line of lip kits when she was still a teenager, at about $1.2 billion.The biggest beauty companies have been on an acquisition spree in recent years as they hope to court younger shoppers with upstart brands. Estee Lauder Cos. bought its remaining two-thirds stake in Korean skin-care company Have & Be Co. for around $1.1 billion on Monday and Japan’s Shiseido spent $845 million to buy clean beauty brand Drunk Elephant in October.Coty shares rose as much as 4.9% to $12.49 in New York Monday. They had already soared 82% this year through Friday.Coty has been under pressure to turn its business around, having taken a $965 million writedown this year on brands it bought from Procter & Gamble in 2015. It’s in the first stages of a plan where its seeking a sale of its professional hair and nail brands, such as Wella, Clairol and OPI. The Kylie deal is a “key milestone” in Coty’s transformation, the company said in the statement.“While the financial implications will be somewhat limited, this transaction, along with Coty exploring strategic options for Professional Beauty, shows that management is moving quickly and aggressively to evolve its portfolio to faster growing channels,” Wells Fargo analyst Joe Lachky said in a note. He rates Coty market perform and has a $13 price target on the shares.The deal solidifies the status of Jenner as one of the youngest billionaires in the world, according to the Bloomberg Billionaires Index, capitalizing off her family’s fame from the reality series “Keeping Up With the Kardashians.”Jenner’s line of lip kits paired a liquid lipstick with pencil lip liner. Now the business sells everything from eyebrow gel to skin care like face scrubs and sunscreen oil. First sold only online, her products became permanently available in stores nationwide in late 2018 through beauty retailer Ulta, which has more than 1,100 shops across the U.S.(Adds comment from analyst in sixth paragraph. Updates shares in fourth.)\--With assistance from Janet Freund.To contact the reporters on this story: Kim Bhasin in New York at firstname.lastname@example.org;Tiffany Kary in New York at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Lisa Wolfson, Cécile DauratFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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