Coty slides as turnaround plan includes $3bn writedown
Cosmetics maker acknowledges a stunning 60% of its brands are 'margin dilutive'
New York — Cosmetics maker Coty will take a $3bn writedown as its ageing mass-market brands face new competition from savvy upstarts in the booming beauty industry.
The company, under pressure to turn its business around as revenues stagnate, laid out the first steps of a turnaround plan on Monday intended to revive margins, reduce leverage and better keep up with its rivals. Coty — which acknowledged a stunning 60% of its brands are “margin dilutive” — plans to simplify its management structure and concentrate on a fewer number of product lines. It didn’t specify which — if any — brands might be on the chopping block...
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