Coty Inc. (COTY) is a leading beauty company with a portfolio of well-known brands. Its licensed brands include Adidas, Calvin Klein, Marc Jacobs, Playboy, Chloé, and Davidoff. The company’s owned brands include Rimmel, OPI, philosophy, and Sally Hansen.
The company’s top ten brands, known as its power brands, generated 72% of the company’s consolidated net revenue in fiscal 2015.[1. Year ending June 30, 2015]
Adidas (ADDYY) is Coty’s biggest licensed brand in the global mass skin and beauty care segment. Adidas maintains a significant presence in deodorants, facing stiff global competition from Unilever’s (UL) Axe deodorants.
The Calvin Klein fragrance brand holds a strong position in the US, the UK, Germany, and Spain, as well as in emerging markets like China and the Middle East. Through strong product lines like CK One, Eternity, and Euphoria, the brand reaches a diverse consumer base.
The company’s professional nail care brand OPI has a portfolio of over 400 creatively named unique shades. OPI has collaborated numerous celebrities and brands such as Gwen Stefani, Katy Perry, and Major League Baseball to create limited-edition collections. In addition, the recent launch of philosophy’s miracle worker anti-wrinkle line was one of the most successful skin care launches in the US prestige market.
Rimmel’s broad line of color cosmetics covers the entire range of women’s color cosmetics, including eye, face, lip, and nail products. Other global cosmetic companies include Estée Lauder (EL) and L’Oréal (LRLCY).
In addition to Coty’s power brands, the company has a deep portfolio of over 60 other brands that contributed to 28% of the total net sales.
Its regional brands include Astor and Joop! Lancaster; its celebrity brands include Katy Perry and Jennifer Lopez; and its emerging brands include Roberto Cavalli and Miu Miu.
Coty aims to expand distribution through salons, travel retailers, and traditional retailers. In addition, the company aims to promote these brands through celebrities and entertainment franchises.
Coty has exposure in the iShares Russell Mid-Cap ETF (IWR) with 0.04%[2. Updated as of October 2, 2015] of the total weight of the portfolio.