Coty Taps P&G Veteran for Interim Leadership Amid Restructuring Efforts

Coty is accelerating its senior management reshuffle as part of a year-long restructuring of its business. The U.S. cosmetics and beauty company has appointed Markus Strobel interim CEO and executive chairman, effective January 1st, 2026.

The executive will take over from Sue Nabi, whose departure was reported by the Financial Times just two weeks ago, who is stepping down after five years at the helm. Coty has not specified when it plans to appoint a permanent CEO.

The temporary appointment is part of the reorganization driven by JAB Holding, Coty’s holding company. At the same time, long-time chairman Peter Harf is stepping down and the company has indicated that he will step down from the board after more than three decades of association.

Strobel comes from Procter & Gamble, where he has had a career spanning more than three decades and most recently led the global skin care and personal care division. In his career he has also worked with premium brands such as Gucci, Dolce & Gabbana, Valentino and Hugo Boss.

Coty speeds up its top management reshuffle with the departure of Sue Nabi

In his first statement following the announcement, Strobel said he sees room to accelerate growth, strengthen the group’s position in prestige and consumer goods and deliver sustainable value to shareholders, partners and consumers.

In recent months, the market has punished Coty. In 2025, the stock has fallen more than 50% as the company has tried to revive its sales in the FMCG category in the face of competition from new beauty brands.

Coty has started fiscal 2026 on the downside. The company closed the first quarter with sales of $1.58 billion, down 6%. On a like-for-like basis, the decline was 8%. The luxury business held up better, while the consumer beauty category contracted by 9% to 507.7 million dollars.

The company is actively pursuing the strategic review of FMCG announced in September, a process that could lead to “alliances, divestments and spin-offs”. The company has framed this work within the objective of strengthening its financial situation, supported by a greater integration of its beauty and fragrance lines.

The company will exit Wella, acquired by KKR, and the Gucci Beauty license, which will be transferred to L’Oréal

The licensing front also weighs on the roadmap. Gucci’s exit from Coty’s portfolio, following Kering’s deal with L’Oréal, puts 2028 as a key date. When the current contract expires, L’Oréal will take over Gucci’s exclusive beauty and fragrance license.

To strengthen its balance sheet, Coty has completed the exit from Wella with the sale of 25.8% to KKR for $750 million. The company plans to use most of the cash to repay debt and retains the right to 45% of future capital gains. As of March 2023, at the end of the third quarter, net debt amounted to $4.1 billion.