Coty terminated or let expire 10 fragrance licenses as part of broader revamping linked to its acquisition of Proctor & Gamble’s beauty business, company executives told analysts in releasing Q4 earnings.

Among the licenses to go is Playboy, for which Coty had produced 20 fragrances since 2008. Others that ended are Celine Dion (first signed in 2003), Tim McGraw (2007), Halle Berry (2012), Lady Gaga (2010), Guess and Italian fashion brand Cerruti. Designer Parfums has since picked up Cerruti and Playboy, while Inter Parfums signed an agreement for Guess.

Coty’s move follows a growing trend among fragrance suppliers to shift licensing focus to fashion brands and away from celebrities, due largely to the sometimes fickle nature of the market for the latter.

“This disposal allows us to simplify the business” and will have a mid-single digit percent impact on Coty’s earnings in the year ending June 30, 2019, CEO Camillo Pane said.

Coty’s net loss in Q4 ended June 30 narrowed to $181.3 million from $304 million a year earlier as total revenue rose 3% to $2.3 billion. Coty’s luxury fragrance business (Marc Jacobs, Gucci, Tiffany) swung to a $47.5 million profit from a $43.8 million loss a year ago as revenue grew 14.6% to $724.4 million. In Coty’s largest business, consumer beauty products (CoverGirl, Max Factor), operating income declined 34% to $53.5 million as revenue fell 5% to $1 billion.

Contact:

Coty, Camillo Pane, CEO, 212-389-7300, camillo.pane@cotyinc.com