Coty is a global beauty company specializing in fragrance, color cosmetics, and skin and body care. The business operates two primary segments: Prestige and Consumer Beauty. The Prestige segment is the company's largest profit driver and focuses on fine fragrances. Coty utilizes a scaled licensing model, securing fragrance rights from luxury fashion houses such as Burberry, Hugo Boss, Calvin Klein, and Marc Jacobs. Under these agreements, Coty manages all research and development, manufacturing, marketing, and distribution while paying royalties to the licensors. The Consumer Beauty segment provides mass-market products through brands like CoverGirl, Rimmel, and Sally Hansen, which sell via drug stores and supermarkets. Coty executes a strategic shift to prioritize prestige and ultra-premium niche fragrances while undergoing a review of the Consumer Beauty segment for a potential sale or separation. The company generates revenue based on volume and net pricing across 122 countries, utilizing dedicated sales forces and a significant travel retail presence. Recent strategy focuses on concentrating advertising spend on high-return products and expanding into fragrance mists to reach younger consumers. Coty manages risks including the scheduled transition of the Gucci license back to the licensor in 2027 and cost pressures from oil price fluctuations and tariffs.