THE FACT THAT? Coty is preparing for a top management shake-up, with chairman Peter Harf set to resign and chief executive Sue Nabi expected to leave as majority shareholder JAB Holdings takes steps to reset the group’s direction.
THE DETAILS JAB plans to name a new president who will then move quickly to install a new chief executive, according to people familiar with the matter. The changes come after prolonged poor performance by Coty, which has seen its share price fall about 55% over the past year and its market capitalization fall to about $2.9 billion.
The shakeup comes as Coty reviews strategic options, including a possible sale of its mass-market cosmetics portfolio and the merger of its mass and prestige fragrance operations. The group has also been weakened by the loss of its Gucci beauty license, which will transfer to L’Oréal from 2028 and is estimated to account for around 9% of Coty’s revenue.
THE WHY? For the beauty industry, the reestablishment of leadership highlights growing pressure on traditional players battling faster-growing rivals, as well as growing shareholder impatience with protracted turnaround efforts amid slowing market conditions.
Fountain: FOOT
