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Coty's (COTY) Innovation Solid, Launches Touch-Less Fragrance Tester

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Coty Inc. (COTY - Free Report) is undertaking robust innovations to drive growth. The company stated that it will introduce a digitally-enabled touch-less fragrance tester to be used at beauty retailers in the next 12 months. The testing of the device at brick & mortar retail stores across some European markets will start sometime in July. By the end of the year, Coty plans to try the device in Asian markets.  

With the help of the new innovation, customers can accurately test fragrance in a less invasive manner. Coty’s new touch-less fragrance tester, developed in partnership with a French start-up — Everie — is a sustainable and easy-to-maintain device. It also utilizes less amount of perfume compared with traditional testers, thereby lowering wastage. This alternate contact-free and safe fragrance testing device bodes well amid rising hygiene and safety concerns of customers as they return to stores for shopping. The iconic beauty company and a leader in fragrances, expects to enhance customer’s shopping experience and improve in-store sales via the launch.

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What Else Should You Know?

The company made several strategic partnerships to enhance its brand portfolio. Coty and Kylie Jenner unveiled their long-term alliance in January 2020, aimed at further building upon Kylie’s beauty business, which includes Kylie Skin and Kylie Cosmetics. In recent developments, the company announced its plans to relaunch Kylie Cosmetics, now formulated using clean and vegan ingredients with a revamped packaging. The products will be made available on a new direct-to-consumer (DTC) website, which is scheduled to go live on Jul 15, 2021. The website will feature Kylie Skin and Kylie Cosmetics items together and will serve as an avenue for new product and collection launches.

On Mar 3, 2021, the company signed a letter of intent to partner with LanzaTech — a pioneer in producing next-generation green and sustainable ingredients. This partnership will introduce sustainable ethanol produced from captured-carbon emissions into Coty’s fragrance offerings. In January 2021, Coty acquired 20% stake in Kim Kardashian West's businessin January 2021. The deal will help Coty and Kim Kardashian West focus on fresh beauty categories along with expanding their worldwide presence beyond the current line of products.

Coty, which shares space with Helen of Troy Limited (HELE - Free Report) , is committed to its core strategies that includes stabilizing Consumer Beauty make-up brands and mass fragrances; accelerating luxury fragrances and setting up Coty as a core player in prestige make-up; establishing skincare portfolio in prestige and mass channels; strengthening e-commerce and DTC capabilities; growing presence in China via Prestige and certain Consumer Beauty brands; as well as setting Coty as an industry leader in sustainability.

Shares of this Zacks Rank #2 (Buy) have rallied 25.8% so far this year compared with the industry’s growth of 17.6%.

Top 2 Cosmetic Picks

Inter Parfums, Inc. (IPAR - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 27.3%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nu Skin Enterprises, Inc. (NUS - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 18.8%, on average.

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