Recently, according to report, Coty is set for another leadership transition as its controlling shareholder, JAB Holdings, prepares a sweeping overhaul at the struggling beauty group. Chair Peter Harf is expected to step down, with chief executive Sue Nabi likely to follow after presiding over a prolonged period of weak performance, according to people familiar with the matter. Under JAB’s plan, Harf’s successor as chair would move quickly to appoint a new CEO, signalling an urgent attempt to reset strategy and restore investor confidence.
The shake-up comes at a turbulent moment for Coty. In September, the company said it was exploring a potential sale of its mainstream cosmetics portfolio, including legacy brands such as Rimmel and Max Factor, while simultaneously merging its mass and prestige fragrance divisions in an effort to arrest declining sales. The group’s challenges have been reflected in its share price: Coty stock has fallen about 55 per cent over the past year, cutting its market capitalisation to roughly $2.9bn from around $10bn two years ago, following a string of disappointing earnings updates blamed on a market slowdown.
Pressure intensified in October when Kering struck a €4bn deal to sell its beauty portfolio to L’Oréal, a transaction that will see Coty lose the lucrative Gucci fragrance and beauty licence from 2028—one of its most valuable assets. Citi analysts estimate Gucci accounts for about 9 per cent of Coty’s total revenue. While Nabi rejected significant financial offers from L’Oréal to terminate the licence early, she has acknowledged the loss will weigh on profits, even as Coty looks to offset the impact through new licensing agreements. Kering executives, meanwhile, had repeatedly expressed dissatisfaction with the performance of Gucci’s beauty business under Coty’s stewardship.
Nabi’s possible exit would mark the end of a tenure that initially brought stability after years of upheaval. Appointed following a revolving door of four chief executives in five years, the former L’Oréal executive and Orveda co-founder was seen as a steadying force. However, over the past two years investor confidence has eroded as mass-market brands such as Max Factor, Rimmel and CoverGirl lost ground to faster-moving rivals like e.l.f. Beauty and L’Oréal-owned NYX, while newer fragrance concepts including Origen and Infiniment Coty failed to meet expectations.
Harf’s departure would also underline broader changes at JAB itself. The 79-year-old architect of JAB’s consumer-focused investment portfolio has already retired as managing partner, and his Coty board role is among his last remaining positions. As JAB’s new leadership pivots away from consumer brands towards insurance and asset management, Coty’s impending leadership change appears emblematic of both a shareholder rethink and a company still searching for a sustainable path forward in an increasingly competitive beauty market.
