Finance
Struggling Coty names P&G veteran as interim CEO in leadership shake up
Published by Global Banking & Finance Review®
Posted on December 22, 2025
4 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 22, 2025
4 min readLast updated: January 20, 2026
Coty names Markus Strobel as interim CEO amid leadership changes, aiming to revitalize its business and improve share performance.
By Rishabh Jaiswal, Alexander Marrow and Mrinmay Dey
Dec 22 (Reuters) - Coty on Monday named Procter & Gamble veteran Markus Strobel as chairman and interim CEO, handing him the reins from outgoing CEO Sue Nabi as the CoverGirl owner battles pressure on its mass-market business and a steep share-price slide.
Coty shares have fallen more than 50% this year as the company struggles to revive sales amid intensifying competition from newer beauty brands. The shares were up 1.5% in premarket New York trade and its Paris-listed stock was down about 2.2%.
Strobel, who spent over three decades at Procter & Gamble and most recently led its global skin and personal care division, will succeed Nabi, who steps down after five years as CEO. Coty did not say when it expected to name a permanent chief.
The leadership change is the latest in a global consumer goods industry grappling with diverging spending patterns.
Strobel, who takes charge on January 1, has worked with labels such as Gucci, Dolce & Gabbana, Valentino and Hugo Boss, as well as other brands that Coty acquired in a $12.5 billion deal around a decade ago.
He will also become executive chairman, replacing Peter Harf, who is retiring after more than 30 years on Coty's board. Harf also stepped down this year as chair and managing partner of JAB Holding, Coty's largest shareholder.
The search for a permanent CEO is underway, a person familiar with the matter told Reuters, adding that the new chair appointment created a natural moment for leadership succession.
JAB PUSHES FOR LEADERSHIP OVERHAUL
The Financial Times reported this month that JAB planned a leadership shake-up at Coty that would see Harf and Nabi exit.
JAB, which manages more than $40 billion in assets, owns about 52% of Coty, according to LSEG data. It did not immediately respond to a request for comment but published Coty's statement on its website.
Nabi oversaw a reduction in leverage, with Coty's net debt to core earnings (EBITDA) ratio falling from more than seven times in 2020 to below three times. On Friday, Coty completed a 2020 portfolio streamlining plan by selling its remaining 25.8% stake in hair care brand Wella to KKR for $750 million.
CONSUMER BEAUTY UNDER REVIEW
Coty said Strobel had the board's full support at a "pivotal moment", with a strategic review of its consumer beauty business underway.
The review, launched in September, could lead to the sale of brands such as CoverGirl and Rimmel as Coty shifts focus to its more profitable fragrances unit.
"I see tremendous potential to accelerate growth, strengthen our position in prestige and mass beauty, and deliver sustainable value for shareholders, partners, and consumers worldwide," Strobel said.
However, increased competition and a recent slowdown in the beauty market are more to blame for Coty's troubles than leadership, CFRA Research analyst Ana Garcia has said previously, adding that sales would remain under pressure.
Coty is also set to lose its exclusive license for Gucci fragrances and beauty products in 2028 after Gucci's parent, Kering, agreed to sell its beauty division to L’Oréal.
Coty missed first-quarter profit estimates as retailers scaled back orders amid economic and tariff uncertainty. Still, it forecast second-quarter like-for-like sales at the upper end of its previous guidance range, banking on steady demand for Calvin Klein and Hugo Boss fragrances.
CONSUMER FIRMS RESHUFFLE TOP RANKS
Consumer goods companies are swapping CEOs almost as fast as sports teams change coaches as boards grow impatient with weak growth, U.S. tariff uncertainty and the challenge of attracting younger shoppers.
Kraft Heinz recently named former Kellogg chief Steve Cahillane as CEO, while Coca-Cola and Lululemon have also appointed new chiefs, joining peers such as Unilever and Nestle in revamping leadership.
(Reporting by Rishabh Jaiswal and Mrinmay Dey in Bengaluru and Alexander Marrow. Editing by Nivedita Bhattacharjee, Anil D'Silva and Mark Potter)
An interim CEO is a temporary chief executive officer appointed to manage a company during a transition period, often while searching for a permanent replacement.
A strategic review is an assessment process undertaken by a company to evaluate its business strategies, operations, and market position, often leading to changes in direction or focus.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to assess a company's operating performance.
Consumer perception refers to how consumers view and interpret a brand or product based on their experiences, beliefs, and interactions, influencing their purchasing decisions.
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled, focusing on the relationships among stakeholders.
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