WWD broke the news, citing multiple industry sources, that Coty is is contemplating splitting up the business in a two-part sell-off of its prestige and consumer divisions.

It's reported that Coty is in early-stage talks with Interparfums on the prestige business, which is particularly interested in fragrance brands Burberry and Hugo Boss. Interparfums held the blockbuster Burberry license until the end of 2013 and is said to have previously made an offer to Coty for the business.

The fragrance and beauty license for Gucci, the crown jewel of the portfolio, may be short-lived for any buyer as time is ticking on the license. Parent company Kering has been building out a beauty division, so it would only make sense the conglomerate has plans to bring the business in-house.

The consumer division, which includes mass brands like CoverGirl, Rimmel, and Max Factor, may be a more difficult deal due to trade tensions and a slowdown in beauty spending in Asia.

Coty had planned to be fully divested of its Wella holding by 2025. It was close to a sale in 2023, but the deal with IGF Wealth Management fell through.

The stock jumped as much as 13% on the announcement Monday. However, the stock has fallen nearly 32% this year amid a worsening macroeconomic environment and President Trump's erratic trade policy. The company cut its annual profit forecast and postponed its investor day in May.

Coty said it does not comment on rumor and speculation, while a spokesperson from Interparfums told WWD, “Overall, we are always inclined to look when opportunities present themselves.”