Coty (NYSE:COTY) saw its stock rise after being upgraded to overweight from neutral by Piper Sandler. Coty is increasing exposure to China and travel retail, which should allow for recovery tailwinds, the firm said.
Last week, the fragrance giant announced the sale of its Lacoste fragrance license back to Lacoste by mutual agreement.
Under Coty’s management in the last six years, Lacoste men’s fragrances have secured a premium+ positioning in the market, with two award winning pillars, L’Homme and Match Point, multiple innovations, and a 17-place improvement in French market rankings.
Thierry Guibert, Lacoste President, commented: “We are very appreciative of Coty's support throughout our partnership. With Coty, Lacoste has taken an important step in the development of its fragrance lines. It is now time for the brand to renew its approach to continue its growth, in a market where Lacoste still has great potential.”
Sue Y. Nabi, Coty’s CEO, said: “We are very proud of the Lacoste fragrance brand and the growth we have achieved through our highly successful partnership over the past six years. Lacoste has been a great partner to Coty and their fragrances continue to have outstanding potential. For both Coty and Lacoste, the exit by end of CY23 represents our respective yet mutually beneficial priorities. This sale advances Coty’s strategic objectives, by enabling Coty to further focus on our largest fragrance licenses, while accelerating our deleveraging agenda through the sales proceeds.”
COTY shares began Tuesday up 24 cents, or 2.9%, to $8.80.
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