Coty: Coronavirus (COVID-19) Company Impact

Summary

Coty: Coronavirus (COVID-19) Company Impact reports key findings as of May 14, 2020 based on market analysis and brand diversification by industry and geography.

Coty, having limited diversification in with the beauty sector, will find it difficult to overcome the loss created by the situation. However, a cash injection from the sale of its professional beauty business may help Coty to focus on its core operations - fragrances and make-up. The company has already prioritized its objective of countering the ill effects of COVID-19 with a series of steps towards reviving sales, and exploring new markets and channels.

Scope

• Coty's lack of operational diversification and dependence on virus-hit regions will adversely impact its sales.
• Coty's concentrated operations in West Europe and North America make the company vulnerable in the COVID-19 crisis, with potentially $942m of sales if these regions at risk.
• Fragrances, haircare, and make-up are vulnerable to significant sales declines due to the spread of COVID-19 in major markets.

Reasons to Buy

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• Access valuable strategic take-outs to help direct future decision-making and inform new product development.