Coty Inc. has appointed former Procter & Gamble executive Markus Strobel as Executive Chairman of the Board and interim Chief Executive Officer, effective January 1, 2026. Strobel brings 33 years of experience at P&G, most recently as President of Global Skin & Personal Care, where he oversaw a multi‑billion‑dollar portfolio of more than 12 global brands.
The appointment follows a strategic review of Coty’s Consumer Beauty business, a move aimed at reinforcing the company’s leadership in beauty and unlocking value from its prestige fragrance and mass‑market segments. Management has emphasized that the review will evaluate the portfolio, explore divestitures or partnerships, and sharpen focus on high‑margin fragrance and prestige cosmetics.
Coty’s recent financial performance has been mixed. In the third quarter of fiscal 2025, net revenue fell 6% year‑over‑year to $2.89 billion, while the fourth quarter saw an 8.1% decline to $2.71 billion. The company reported a net loss in both quarters, reflecting ongoing margin pressure and the impact of a restructuring plan that includes cost‑saving initiatives and a focus on operational efficiency.
Segment data shows that prestige fragrance remains the company’s strongest driver, accounting for the majority of revenue and profit. In contrast, the Consumer Beauty segment—home to brands such as CoverGirl, Rimmel, and Sally Hansen—has experienced declining sales and margin compression, prompting the strategic review. Management has stated that integrating fragrance and scenting brands will create a “fragrance and scenting powerhouse,” while the Consumer Beauty review aims to improve competitiveness and unlock hidden value.
CEO Sue Nabi has highlighted the company’s resilience, noting that “beauty has remained resilient across economic cycles, and we have strengthened our strategic, operational, and financial fundamentals.” She added that the focus on fragrance “continues to outperform the global beauty market and already drives the majority of our revenues and profits.” Nabi also emphasized that the new structure will “drive renewed momentum and sharper focus for Consumer Beauty, positioning it to compete more effectively in the evolving beauty landscape.”
The leadership change signals Coty’s intent to accelerate its transformation, leveraging Strobel’s P&G experience to navigate current challenges. Analysts are watching the outcome of the Consumer Beauty review and the company’s ability to maintain profitability while executing cost‑control measures. The appointment is expected to provide clarity and confidence to investors and stakeholders as Coty seeks to rebuild its financial position and capitalize on its core fragrance strength.
The market reaction to the announcement has been measured, with analysts noting that while the leadership shift is a positive step, the company’s near‑term outlook remains cautious due to ongoing revenue declines and the need to complete the Consumer Beauty review. Investors are focusing on how effectively Coty can translate its strategic priorities into improved financial performance in the coming quarters.
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