Investment firm JAB Holdings, Coty’s largest shareholder, is reportedly weighing a leadership reset at the underperforming beauty group that could lead to the departures of Executive Chairman Peter Harf and CEO Sue Nabi.
Citing sources, the Financial Times reported that a successor could be appointed immediately, following two years of weak sales amid a sluggish market and increased competition from newer brands.
The Moodie Davitt Report has reached out for comment. Coty has not yet issued a statement.
As reported, Coty posted US$5.89 billion in net revenues for FY2025 ended 30 June, which represented a -4% decline year-on-year (-2% like-for-like).
More recently, despite what the company described as “solid” travel retail growth in Q1 FY2026 ended 30 September, group-wide net revenues decreased -6% on a reported basis and -8% like-for-like to US$1.58 billion.
The management restructuring follows Coty’s September announcement that it was exploring a sale of its mass-market cosmetics portfolio, including Rimmel and Max Factor.
Coty is also integrating its prestige and mass fragrance businesses to drive sustainable, profitable growth.
The group’s already disappointing results came under additional strain with L’Oréal’s €4 billion deal to acquire Kering Beauty, taking over the Gucci beauty licence from Coty.
Addressing the situation, Coty CEO Sue Nabi previously outlined the company’s multi-year strategy, focusing on overdriving the brands with the biggest long-term growth potential, building and amplifying newly added licences and brands, while optimising the Gucci brand during its remaining term.
The Financial Times reported, citing three sources, that Nabi turned down major financial offers from L’Oréal to end the Gucci licence early. ✈
