Cosmetics maker Coty Inc. is taking a $3 billion write-down on CoverGirl, Max Factor and other brands it acquired a few years ago, becoming the latest consumer giant to reckon with mainstream labels that are losing their grip on American shoppers, the Wall Street Journal reported. The makeup and fragrance seller, which is controlled by European investment firm JAB Ltd., has struggled with weak sales and executive turnover. On Monday, the company said that it will restructure its operations and cut jobs to ease indigestion from brands Coty bought in 2016 from Procter & Gamble Co. Many women have shifted to higher-end and niche brands, and increasingly buy beauty products from online startups or outlets like Sephora and Ulta Beauty. Fighting back, CVS and Walgreens have looked to expand their selection while paring mass-market beauty names. The shift has meant sales declines for many once-popular brands, including Revlon Inc.’s namesake line and L’Oréal SA’s Maybelline.
