Coty Renews License Agreement With Adidas
Portfolio Pulse from Shivani Kumaresan
Coty Inc has renewed its long-term license agreement with Adidas AG. The partnership focuses on personal care, wellness, sports, and sports lifestyle. Coty is driving the growth of the Active Skin & Mind Range in China, following its successful launch in Europe. The company has also divested a 3.6% stake in Wella Brand for $150M. Adidas' Q2 EPS dipped by 75%, but the company has increased its FY23 revenue outlook due to Yeezy inventory reduction.
August 18, 2023 | 9:50 am
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NEUTRAL IMPACT
Adidas has renewed its license agreement with Coty. The company's Q2 EPS dipped by 75%, but it has increased its FY23 revenue outlook.
The renewal of the agreement with Coty could potentially bring in more revenues for Adidas. However, the dip in Q2 EPS might negatively impact the company's short-term profitability.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Coty has renewed its partnership with Adidas and is expanding its Active Skin & Mind Range in China. It has also sold a 3.6% stake in Wella Brand.
The renewal of the partnership with Adidas and the expansion in China could potentially boost Coty's revenues. However, the divestment of the stake in Wella Brand might have a negative impact on the company's assets.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100