It’s a case of 1 out, one in for Coty’s fragrance offering.

Coty has sold its Lacoste fragrance license back to Lacoste by mutual agreement for an undisclosed sum, and individually, renewed its license with Hugo Boss.

Coty had managed Lacoste’s fragrances for the past six years and stressed that in its tenure, Lacoste men’s fragrances have secured a premium positioning out there, with two award-winning pillars, L’Homme and Match Point, multiple innovations, and a 17-place improvement in French market rankings.

Thierry Guibert, Lacoste president, said: “We’re very appreciative of Coty’s support throughout our partnership. With Coty, Lacoste has taken a vital step in the event of its fragrance lines. It’s now time for the brand to renew its approach to proceed its growth, in a market where Lacoste still has great potential.”

Sue Y. Nabi, Coty’s CEO, added: “For each Coty and Lacoste, the exit by end of CY23 represents our respective yet mutually helpful priorities. This sale advances Coty’s strategic objectives, by enabling Coty to further deal with our largest fragrance licenses, while accelerating our deleveraging agenda through the sales proceeds.”

WWD understands Lacoste has an enormous footprint in Russia, an area which Coty has divested from resulting from its invasion of Ukraine.

At the identical time, Coty has renewed its license with Hugo Boss. The partnership, which began in 2016 and has now been prolonged beyond 2035, includes all Boss and Hugo fragrances for men and ladies.

Nabi said the extension “is consistent with Coty’s strategic objective to deal with key brands which might change into global powerhouses, while driving a balanced growth agenda across our fragrance portfolio.”

Following the Hugo Boss license renewal, which incorporates no material changes in licensing terms, Coty has no sizable license up for renewal in the following six years. The common remaining duration of Coty’s top six licenses — which together account for greater than 80 percent of Coty’s prestige fragrance business — is now roughly 10 years.

Earlier this 12 months, Nabi told WWD that while the lipstick effect is mentioned often, she believes it’s now all about the fragrance effect, with Coty’s prestige fragrances having been flying off the shelves despite recession fears and sky-high inflation.

More recently, Coty’s net revenues got here in at about $1.4 billion in the primary quarter ended Sept. 30. This was up 1 percent from a 12 months earlier and a touch above analysts’ forecasts of $1.37 billion, in keeping with a Factset poll.