Coty Transitions Manufacturing to US: A Strategic Move to Avoid Tariffs
Coty restructures its production in Barcelona. The American cosmetics company will move the fragrances of the mass market category, which includes Adidas, David Beckham or Vera Wang, as well as the mist to its plant in the North American country, pressured by the tariffs imposed by the government of Donald Trump.
According to El Economista, the company is also studying the transfer of entry-level products from the prestige division in order to optimize its manufacturing capacity in the United States. The Barcelona plant, located in the city of Granollers, is the largest plant in its entire network. Coty markets the Calvin Klein, Hugo Boss and Gucci brands.
To mitigate the tariff impact, the organization has launched a contingency plan with price adjustments and a project to cut costs in order to protect the group’s profitability. Coty estimates the impact of the tariffs at $33 million. The company went into the red in the first half of the current fiscal year.
Company sources explain that the Granollers factory remains a “fundamental pillar” and that total production volumes have increased compared to the previous year.
Coty will transfer the production of the ‘mass market’ line and products such as ‘mist’
Coty sold 2.6% less in the first six months of the current fiscal year, period ending December 31, 2025, to reach a turnover of $3,341.4 million. After entering into losses in the first quarter, in the second quarter of the year the company was in the red at $116.2 million, while in the same period of 2024 the company posted a profit of $30.6 million.
On a half-yearly basis, Coty posted a loss of $42.2 million, while in the same period of 2024 it posted a loss of $121.3 million.
Adjusted gross operating profit (ebitda), meanwhile, fell by 15%, but remained positive at $330.2 million in the second quarter of 2025.
The last few months have also been marked by the exit of Gucci from Coty’s licensing portfolio, following the sale of the beauty catalog of the luxury group Kering to the giant L’Oréal.
