THE WHAT? Coty is preparing for a senior leadership shake-up, with chair Peter Harf set to step down and chief executive Sue Nabi expected to depart as controlling shareholder JAB Holdings moves to reset the group’s direction.
THE DETAILS JAB plans to appoint a new chair who will then move quickly to install a new CEO, according to people familiar with the matter. The changes follow prolonged underperformance at Coty, which has seen its share price fall by around 55% over the past year and its market capitalisation drop to roughly US$2.9 billion.
The overhaul comes as Coty reviews strategic options, including a potential 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 licence, which will transfer to L’Oréal from 2028 and is estimated to account for about 9% of Coty’s revenue.
THE WHY? For the beauty industry, the leadership reset highlights mounting pressure on legacy players struggling against faster-growing rivals, as well as rising shareholder impatience with prolonged turnaround efforts amid slowing market conditions.
Source: FT
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