Core Viewpoint - Coty Group is actively seeking buyers or considering a split sale of its high-end and mass beauty divisions, with negotiations still in early stages. The potential transaction may take the form of a split rather than a complete sale, with strategic partnerships or mergers being more likely than traditional acquisitions [4]. Financial Performance - For the third quarter of fiscal year 2025, Coty Group reported net revenue of $1.2991 billion, a year-on-year decline of 6.24%, and a loss of $402 million. For the first three quarters of fiscal year 2025, net revenue was $4.6405 billion, down 2.4%, with a loss of $280.9 million [5]. - The financial struggles indicate that the news of potential sales is not unfounded, as many international beauty brands are facing cash flow pressures, including Coty [5]. Brand Portfolio and Risks - Coty Group's high-end beauty division includes brands like Burberry, while its mass beauty division includes Covergirl, Max Factor, and Rimmel. The company faces risks of losing licensing rights for several brands, such as Miu Miu, which will end its contract with Coty in 2024 [4][6]. - The high-end beauty division generates over 60% of Coty's revenue, with Gucci being a significant contributor. However, the licensing agreement for Gucci is set to expire in 2028, and the parent company, Kering, has indicated intentions to reclaim the brand [6]. Strategic Adjustments - Experts suggest that losing Gucci will impact Coty's brand structure and performance in the high-end market. However, Coty is expected to make strategic adjustments to seek more competitive and promising brands to maintain its market position [7]. - Coty is also attempting to mitigate risks by launching its own fragrance brand, Infiniment Coty Paris, which is seen as a significant initiative to create a new era in fragrances and scents [7].