Coty Inc. will wind down operations in Russia, which make up slightly more than 3 percent of the total business, the company said Wednesday.
“After careful consideration, including analysis of relevant U.S., U.K. and other applicable regulation, Coty has decided to wind down its Russian operations starting immediately,” the company said in a statement.
Coty’s move to cease operations in Russia comes nearly two months after many big beauty and consumer products companies, including Coty, halted commercial activity there, due to Russian president Vladimir Putin’s continuing attack on Ukraine.
Coty is the 10th largest beauty manufacturer in the world, according to the Beauty Inc Top 100. The company posted $5 billion in sales for calendar 2021 — 3 percent of that is $150 million.
“While all of the financial impacts, including the impact on the company’s long-term outlook, of the decision are still being determined, this decision is not expected to impact Coty’s ability to achieve its previously issued fiscal 2022 outlook on revenue, adjusted earnings before interest, taxes, depreciation or amortization, or adjusted [earnings per share] guidance because of seasonally lower contribution of the business in the fourth fiscal quarter,” Coty said in the statement.
In March, L’Oréal and The Estée Lauder Cos. Inc. both closed stores they had operating in Russia, and halted other business in the market in support of Ukraine. Sephora also closed stores in Russia, and Unilever, owner of Dove, Tatcha and other brands, paused business there, too.
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