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Coty Strengthens AI Search Strategy Through Brandlight Partnership
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Key Takeaways
COTY partnered with Brandlight to develop GEO capabilities and boost beauty product visibility.
COTY's pilot projects showed encouraging results from optimizing websites, creator content and digital PR.
COTY will expand AI training and optimization to help teams improve product discovery.
Coty Inc. (COTY - Free Report) is strengthening its digital brand discovery approach through a new partnership with Brandlight, a company specializing in AI visibility. The collaboration comes as consumers increasingly use artificial intelligence assistants and generative search tools to explore beauty products, moving beyond conventional search engines.
A central priority of the agreement is to develop Coty's Generative Engine Optimization (GEO) capabilities. By introducing additional resources and insights for its brand teams, Coty intends to adapt its marketing approach to changing consumer search habits and improve how its products are surfaced through AI-powered platforms.
The initiative also reflects the company's ambition to keep its beauty portfolio relevant as consumers' ways of discovering and evaluating brands evolve. Coty's executive chairman and interim chief executive officer, Markus Strobel, highlighted AI's growing role in determining which brands attract consumer attention and influence choices. He emphasized the importance of reaching appropriate audiences and addressing a wide range of beauty needs in this changing environment.
Brandlight chief executive officer Imri Marcus noted that consumers frequently approach AI tools with questions about their requirements or preferences rather than searching for a particular brand. For Coty, this creates an opportunity to make its products more discoverable when AI systems generate recommendations in response to consumer queries.
Preliminary pilot projects suggest that improvements to digital marketing materials can strengthen brand representation in AI-generated results. The work covers website content, product information pages, creator-developed materials, digital public relations and resources used for product launches. These measures can also support product discovery when consumers do not include a brand name in their searches.
The agreement extends Coty's wider efforts to incorporate AI into its business operations. Alongside evaluating visibility and gathering insights, the partnership will involve training, team enablement and further optimization. These activities are intended to help Coty's employees apply the findings to their work as the company responds to developing technologies and changing consumer behavior.
The Zacks Rundown for COTY
The company’s shares have gained 20.5% over the past three months compared with the industry’s 29.1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, COTY trades at a forward price-to-earnings ratio of 11.00, lower than the industry’s average of 26.16. COTY currently carries a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for COTY’s current fiscal year earnings implies a year-over-year increase of 47.6%, while the same for next fiscal year earnings implies a decline of 14.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
The Zacks Consensus Estimate for ELF’s current fiscal-year sales and earnings indicates growth of 20.5% and 17.3%, respectively, from the year-ago figures. ELF delivered a trailing four-quarter earnings surprise of 61.5%, on average.
Helen of Troy Limited (HELE - Free Report) operates as a consumer products company in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. At present, HELE sports a Zacks Rank of 1.
The Zacks Consensus Estimate for HELE’s current fiscal-year sales and earnings implies a decline of 1% and 1.4%, respectively, from the year-ago figures. HELE delivered a trailing four-quarter earnings surprise of 207.7%, on average.
DSM-Firmenich AG (DSFIY - Free Report) provides nutrition, health, and beauty solutions in Switzerland, the Netherlands, the rest of Europe, the Middle East and Africa, North America, Latin America, China, and the rest of Asia. At present, the company holds a Zacks Rank of 2 (Buy).
The consensus estimate for DSFIY’s current fiscal-year sales and earnings implies a decline of 24% and 4.6%, respectively, from the year-ago figures.
View the Zacks #1 Rank List
Image: Bigstock
Coty Strengthens AI Search Strategy Through Brandlight Partnership
Key Takeaways
Coty Inc. (COTY - Free Report) is strengthening its digital brand discovery approach through a new partnership with Brandlight, a company specializing in AI visibility. The collaboration comes as consumers increasingly use artificial intelligence assistants and generative search tools to explore beauty products, moving beyond conventional search engines.
A central priority of the agreement is to develop Coty's Generative Engine Optimization (GEO) capabilities. By introducing additional resources and insights for its brand teams, Coty intends to adapt its marketing approach to changing consumer search habits and improve how its products are surfaced through AI-powered platforms.
The initiative also reflects the company's ambition to keep its beauty portfolio relevant as consumers' ways of discovering and evaluating brands evolve. Coty's executive chairman and interim chief executive officer, Markus Strobel, highlighted AI's growing role in determining which brands attract consumer attention and influence choices. He emphasized the importance of reaching appropriate audiences and addressing a wide range of beauty needs in this changing environment.
Brandlight chief executive officer Imri Marcus noted that consumers frequently approach AI tools with questions about their requirements or preferences rather than searching for a particular brand. For Coty, this creates an opportunity to make its products more discoverable when AI systems generate recommendations in response to consumer queries.
Preliminary pilot projects suggest that improvements to digital marketing materials can strengthen brand representation in AI-generated results. The work covers website content, product information pages, creator-developed materials, digital public relations and resources used for product launches. These measures can also support product discovery when consumers do not include a brand name in their searches.
The agreement extends Coty's wider efforts to incorporate AI into its business operations. Alongside evaluating visibility and gathering insights, the partnership will involve training, team enablement and further optimization. These activities are intended to help Coty's employees apply the findings to their work as the company responds to developing technologies and changing consumer behavior.
The Zacks Rundown for COTY
The company’s shares have gained 20.5% over the past three months compared with the industry’s 29.1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, COTY trades at a forward price-to-earnings ratio of 11.00, lower than the industry’s average of 26.16. COTY currently carries a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for COTY’s current fiscal year earnings implies a year-over-year increase of 47.6%, while the same for next fiscal year earnings implies a decline of 14.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
e.l.f. Beauty, Inc. (ELF - Free Report) is a beauty company that provides cosmetics and skin care products worldwide. At present, ELF sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ELF’s current fiscal-year sales and earnings indicates growth of 20.5% and 17.3%, respectively, from the year-ago figures. ELF delivered a trailing four-quarter earnings surprise of 61.5%, on average.
Helen of Troy Limited (HELE - Free Report) operates as a consumer products company in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. At present, HELE sports a Zacks Rank of 1.
The Zacks Consensus Estimate for HELE’s current fiscal-year sales and earnings implies a decline of 1% and 1.4%, respectively, from the year-ago figures. HELE delivered a trailing four-quarter earnings surprise of 207.7%, on average.
DSM-Firmenich AG (DSFIY - Free Report) provides nutrition, health, and beauty solutions in Switzerland, the Netherlands, the rest of Europe, the Middle East and Africa, North America, Latin America, China, and the rest of Asia. At present, the company holds a Zacks Rank of 2 (Buy).
The consensus estimate for DSFIY’s current fiscal-year sales and earnings implies a decline of 24% and 4.6%, respectively, from the year-ago figures.