Yahoo Finance Beauty company Coty reorganizes China business
Beauty company Coty partners with Li & Fung to distribute some brands in China
NEW YORK (AP) -- Coty is shaking up its business in China.
The perfume and cosmetics maker said Tuesday that Chinese consumer goods company Li & Fung will distribute some of its brands in the country, including adidas, Rimmel and Playboy. Coty said it will stop selling its TJoy skincare line in China and focus on its other brands instead.
The partnership, which begins July 1, will strengthen the company's position in the "fast growing market," said Coty CEO Michele Scannavini, in a statement.
New York-based Coty makes fragrances, lotions and makeup under the Calvin Klein, Philosophy and Sally Hansen brands as well as for celebrities including Lady Gaga, David Beckham and Katy Perry. Coty became a public company in June 2013.
Earlier this year, Coty signed a deal with beauty company Avon Products Inc. to have its representatives sell Coty's celebrity fragrances in Brazil.
Separately, Coty said its board of directors approved a plan to buy back an additional $200 million of its own stock. That brings its total authorized buyback amount to $300 million.
Shares of Coty Inc. rose 20 cents to $16.80 in morning trading Tuesday. Its stock is down 4.4 percent from its initial public offering price of $17.50 nearly a year ago.
