Key Takeaways:The loss of Gucci’s beauty license could wipe out roughly $500 million in annual sales and put Coty’s future as a standalone company in doubt.Coty’s stock has fallen 75% since its 2013 debut amid slowing growth and questionable acquisitions.Industry experts say taking Coty private could help it rebuild, though chances of attracting private equity interest appear slim.Coty has spent the past two decades trying to position itself as a beauty powerhouse on par with L’Oréal and Estée Lauder. The potential loss of its Gucci Beauty license, following Kering’s €4 billion ($4.67 billion) partnership with L’Oréal, is testing whether Coty can maintain its footing as an independent public company.The New York- and Paris-based group regained some of its shine after industry veteran Sue Nabi took the helm in 2020, riding a post-pandemic beauty boom that sent shares of Coty and its peers sharply higher. But as consumer sentiment weakened and competition intensified, investor confidence faded: Coty’s stock has lost about half its value over the past year and roughly 75% since its 2013 debut.Now, Coty is in the midst of a strategic review of its consumer division, created through a $12.5 billion deal with Procter & Gamble that brought in mass-market brands such as CoverGirl and Max Factor, along with fragrance licenses including Hugo Boss and Gucci. The megadeal initially lifted Coty’s revenue to about $9 billion, but the company closed 2024 with total sales of $6.12 billion. Coty faces a 2028 deadline to reassure investors of its long-term growth prospects before its Gucci deal, now tied to the new Kering–L’Oréal tie-up, expires.