Coty CFO Laurent Mercier is looking to increase profitability by streamlining its product portfolio, according to a report by The Wall Street Journal.  Mercier is aiming to achieve company savings of $600 million over the course of three years, with a $300 million saving aim this fiscal year.

The company, which reported a net loss of 3.3 percent YOY for the quarter ending 31st March 2021, has been looking at cost saving measures following the lack lustre performance of the mass brands acquired in 2016.

 With consumers moving to more luxury and high end brands, the company is now looking to improve forecasts by reducing stock.

Mercier said, “Improving the gross margin is essential. It is very detailed work, a question of discipline.” U.S. sales for some of the company’s products are encouraging, said Linda Bolton Weiser, a managing director at advisory firm D.A. Davidson & Co., citing recent statistics by data-analytics firm Information Resources Inc.

Those estimates show double-digit percentage growth in sales for certain Coty products, compared with previous quarters, when sales growth was flat or negative. The company has reduced the number of products in its consumer beauty business by 40 percent over the past year.