Sep 30, 2025 - Business

Coty weighs options for CoverGirl and other cosmetic brands

Dan Primack

illustration of loose pink makeup powder in shape of a dollar symbol next to a makeup brush — Illustration: Tiffany Herring/Axios

Coty on Tuesday announced a strategic review of its consumer beauty business, which could result in sales or spinoffs.

The big picture: This is an area where consumer value doesn't seem to be paying off, as legacy cosmetics are getting lapped by prestige brands.

For Coty, whose shares are down more than 41% this year, that means refocusing on fragrances.

Zoom in: The review will focus on a mass color cosmetics unit that generates around $1.2 billion in annual revenue, for brands that include CoverGirl, Rimmel, Sally Hansen, and Max Factor.

It also will examine a portfolio of Brazilian brands that generate around $400 million in annual revenue.

Go deeper, via WSJ: "Coty has cited headwinds including locked shelves in stores, immigration policy changes, and the ever-tightening squeeze on low-income consumers."

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Coty weighs options for CoverGirl and other cosmetic brands

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