Coty, Inc. and Swarovski have signed a long-term licensing agreement that will launch Swarovski into the fragrance market, with their first products slated to launch in 2026.
While financial projections for the partnership have not been released, both companies anticipate increased earnings from the deal, said Coty in an official statement.
The agreement will leverage Swarovski's global luxury brand and Coty's expertise in beauty that also includes assets in cosmetics and skin and body care.
In the first quarter of this year, Coty reported an adjusted net income of $128.1 million for their fragrance assets.
Prestige fragrances such as Gucci, Burberry, and Marc Jacobs drove performance, with 5% reported growth and 7% like-for-like basis. Gross margins improved to 65.5%, up 200 basis points year-over-year.
In the third and fourth quarters of this year, Coty reported earnings of $1.2 billion, up 8% from last year, said Market Screener.
The company currently has a market capitalization of $6.67 billion with the stock trading at nearly $7.67 per share, said Market Beat.
Swarovski, a privately-held company, does not disclose quarterly earnings but reported a 10% revenue growth year-over-year for 2023, according to a press release.
According to Statista, the global fragrance market earned $58.21 billion in 2023, targeting affluent consumers between the ages of 25 and 45. Both Coty and Swarovski appeal to this demographic.
