Coty faces a potential earthquake in its executive suite. According to the Financial Times, major shareholder JAB Holding is pushing for a drastic change in the company's leadership that could result in the departure of Chairman Peter Harf, and later CEO Sue Nabi.
The internal move comes at a complicated time for the beauty multinational: Coty's shares have plummeted by more than half this year, and the company has initiated multiple strategic reviews, including that of its mass cosmetics business, a segment that was already under pressure from weaker demand and growing competition.
What's happening with leadership?
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Peter Harf, who has been a key figure at Coty for years and the founder of modern Coty, would be the first to step down as chairman of the board.
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Following that departure, JAB plans to appoint a new chairman who could in turn replace Sue Nabi as CEO.
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The alleged turn of events has surprised even some within Coty itself: sources cited by the FT claim that Nabi had recently expressed her intention to her team to continue for another five years at the helm of the company.
Why now?
The company has grappled with market challenges and key strategic decisions:
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The potential loss of the Gucci license, which represented nearly $500 million in sales, following an agreement between L’Oréal and Kering has been a hard blow to Coty’s traditional business.
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Coty is also restructuring its portfolio, reviewing its mass cosmetics business (brands like Rimmel, CoverGirl, Max Factor) and merging fragrance operations to gain efficiency.
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All of this is happening in a context where overall sales have shown weakness and investors are pushing for stronger results.
The Role of Sue Nabi and the Dynamics at Coty
Sue Nabi, who took over as CEO in September 2020, comes from a long career at L’Oréal and founded the luxury skincare brand Orveda before leading Coty. Since her arrival, she has overseen multiple transformation phases, including restructurings and strategic adjustments aimed at better positioning Coty in the competitive global beauty market, but recent results have been mixed and its shares have suffered a notable decline on the stock market.
What this change could mean
If it is finally confirmed:
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Coty would take an important turn in its leadership model, with JAB seeking new profiles to face the next cycle of growth or consolidation.
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The departure of two of the most visible figures, Harf and possibly Nabi, could be interpreted by the markets as a sign of renewal or, for some analysts, of uncertainty about the company's future strategy.
For now, neither Coty nor JAB have issued official statements confirming the changes.