Coty on Monday named Procter & Gamble veteran Markus Strobel as chairman and interim CEO, handing him the reins as the CoverGirl owner battles pressure on its mass-market business and a steep share-price slide.
Coty shares have fallen more than 50 percent this year as the company struggles to revive sales amid intensifying competition from newer beauty brands. Paris-listed shares were down about 5 percent on Monday, while U.S. shares were untraded before the bell.
Line chart showing Coty’s share price from 2020 to 2025. Shares rise sharply through 2021–23 before declining through 2024–25. The chart highlights the period overseen by CEO Sue Nabi and notes a 2025 strategic review announcement
Strobel, who spent over three decades at Procter & Gamble and most recently led its global skin and personal care division, will succeed Sue Nabi, who steps down after five years as CEO. Coty did not say when it expected to name a permanent chief.
The leadership change is the latest in a global consumer goods industry grappling with diverging spending patterns.
Strobel, who takes charge on January 1, has worked with labels such as Gucci, Dolce & Gabbana, Valentino and Hugo Boss, as well as other brands that Coty acquired in a $12.5 billion deal around a decade ago.
He will also become executive chairman, replacing Peter Harf, who is retiring after more than 30 years on Coty’s board. Harf also stepped down this year as chair and managing partner of JAB Holding, Coty’s largest shareholder.
The search for a permanent CEO is underway, a person familiar with the matter told Reuters, adding that the new chair appointment created a natural moment for leadership succession.
Jab Pushes for Leadership Overhaul
The Financial Times reported this month that JAB planned a leadership shake-up at Coty that would see Harf and Nabi exit.
JAB, which manages more than $40 billion in assets, owns about 52 percent of Coty, according to LSEG data. It did not immediately respond to a request for comment but published Coty’s statement on its website.
Nabi oversaw a reduction in leverage, with Coty’s net debt to core earnings ratio falling from more than seven times in 2020 to below three times. On Friday, Coty completed a 2020 portfolio streamlining plan by selling its remaining 25.8 percent stake in hair care brand Wella to KKR for $750 million.
Consumer Beauty Under Review
Coty said Strobel had the board’s full support at a “pivotal moment”, with a strategic review of its consumer beauty business underway.
The review, launched in September, could lead to the sale of brands such as CoverGirl and Rimmel as Coty shifts focus to its more profitable fragrances unit.
“I see tremendous potential to accelerate growth, strengthen our position in prestige and mass beauty, and deliver sustainable value for shareholders, partners, and consumers worldwide,” Strobel said.
However, increased competition and a recent slowdown in the beauty market are more to blame for Coty’s troubles than leadership, CFRA Research analyst Ana Garcia has said previously, adding that sales would remain under pressure.
Coty is also set to lose its exclusive license for Gucci fragrances and beauty products in 2028 after Gucci’s parent, Kering, agreed to sell its beauty division to L’Oréal.
Coty missed first-quarter profit estimates as retailers scaled back orders amid economic and tariff uncertainty. Still, it forecast second-quarter like-for-like sales at the upper end of its previous guidance range, banking on steady demand for Calvin Klein and Hugo Boss fragrances.
Consumer Firms Reshuffle Top Ranks
Consumer goods companies are swapping CEOs almost as fast as sports teams change coaches as boards grow impatient with weak growth, U.S. tariff uncertainty and the challenge of attracting younger shoppers.
Kraft Heinz recently named former Kellogg chief Steve Cahillane as CEO, while Coca-Cola and Lululemon have also appointed new chiefs, joining peers such as Unilever and Nestle in revamping leadership.
By Rishabh Jaiswal, Mrinmay Dey, Alexander Marrow
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Coty Sells Remaining Stake of Wella in $750 Million Deal with KKR
Coty said on Friday it sold its remaining 25.8 percent stake in the hair care brand, while retaining rights to a share of any future sale or initial public offering proceeds.
