Beauty brand Coty has named Markus Strobel as executive chairman of the board and interim CEO. The appointment will take effect on 1 January 2026. Strobel arrives at Coty after more than three decades at Procter & Gamble (P&G), where he most recently headed the company’s global skin and personal care division as president. Over his 33-year tenure, he held a series of senior posts across beauty & grooming, spanning fine fragrance, hair care and grooming. At P&G, Strobel oversaw category and organisatio ...

Core Insights - Coty Inc. announced that Markus Strobel will become Executive Chairman of the Board and Interim Chief Executive Officer starting January 1, 2026 [1] - Strobel has a 33-year career at Procter & Gamble, where he led the Global Skin & Personal Care business and revitalized the SK-II brand [2] - Strobel aims to leverage Coty's strong foundations to accelerate growth and enhance its position in both prestige and mass beauty markets [4] Company Leadership Transition - Markus Strobel succeeds Peter Harf, who is retiring after over 30 years, and Sue Nabi, who is stepping down after five years as CEO [4] - Harf's leadership contributed to Coty's status as a global beauty leader, while Nabi launched several successful fragrances and reduced financial net leverage to approximately 3x [4] Strategic Direction - Strobel will lead Coty during a strategic review of the Consumer Beauty business, identifying opportunities for profitable growth and expansion [3] - The company is focused on reinforcing its leadership in the beauty sector and delivering sustainable value to shareholders and consumers [4] Company Overview - Coty, founded in Paris in 1904, is one of the largest beauty companies globally, with a diverse portfolio across fragrance, color cosmetics, and skin and body care [5] - The company operates in over 120 countries, empowering consumers to express their beauty visions while committing to environmental protection [5]

Coty Inc.’s sales slipped in the first three months of fiscal 2026, the beauty company reported Wednesday, just weeks after it was revealed that it will lose the Gucci license. Net revenue tallied $1.58 billion, down 6 percent from a year earlier, but roughly in line with Wall Street estimates. On a like-for-like basis, revenues declined 8 percent. More from WWD Within that, prestige revenue was down 4 percent, just topping $1 billion. Consumer beauty revenue was $507.7 million, representing a decrease o ...

Financial Data and Key Metrics Changes - Fiscal year 2025 net revenues declined by 2% like for like, with Q4 revenues declining by 9% [17] - EBITDA grew at a CAGR of 9% from CHF 760 million in fiscal year 2021 to CHF 1.08 billion in fiscal year 2025, with an EBITDA margin expansion of 190 basis points to 18.4% [8][21] - Adjusted EPS for fiscal year 2025 was $0.50, reflecting a 4% growth despite lower operating income [22] - Free cash flow for fiscal year 2025 was CHF 278 million, slightly below the target of CHF 300 million [22] Business Line Data and Key Metrics Changes - Prestige Fragrance business grew to a £3.5 billion segment with a CAGR of 10% from fiscal year 2021 to fiscal year 2025 [6] - Consumer Beauty business achieved a 2% CAGR from fiscal year 2021 to fiscal year 2025, recovering from previous declines [7] - In Q4, Prestige sellout grew low single digits, while Consumer Beauty sellout declined high single digits against a modestly positive market [20] Market Data and Key Metrics Changes - The U.S. Prestige beauty market grew by approximately 4% in fiscal year 2025, but the company experienced a mid-single-digit percentage decline in like-for-like sales [13] - The mass beauty market in the U.S. declined by roughly 1% in fiscal year 2025, with the company's like-for-like sales declining by a mid-teen percentage [13] - In Asia, excluding China, sellout grew approximately four times ahead of market growth [58] Company Strategy and Development Direction - The company is refocusing on core strengths in fragrances, which represent over 60% of revenues, and aims to drive growth in structurally profitable beauty categories [36][37] - A strategic shift is underway to prioritize investment in high-return areas while rebalancing resources away from less profitable segments like mass cosmetics [45][66] - The company is implementing the "All in to Win" program to deliver CHF 130 million in annual fixed cost savings through fiscal year 2027 [23] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges in fiscal year 2025, including retailer inventory buildup and execution weaknesses, which impacted performance [11] - There is an expectation of sequential improvement in sales and profit trends in fiscal year 2026, with a return to growth anticipated in the second half [30][73] - The company is actively preparing for multiple scenarios regarding tariffs and geopolitical uncertainties, with mitigation strategies in place [29][25] Other Important Information - The company has received 12 consecutive debt rating upgrades, positioning it just one notch below investment grade [9] - The company is committed to sustainability, achieving a Grand EcoVadis rating placing it in the top 5% of companies globally for sustainability performance [71] Q&A Session Summary Question: What are the expectations for sales trends in fiscal year 2026? - The company anticipates a like-for-like decline of 6% to 8% in Q1 and a decline of 3% to 5% in Q2, with sequential improvement expected throughout the year [31] Question: How is the company addressing the challenges in the U.S. market? - The company is taking decisive actions, including new leadership and a more agile regional structure, to address underperformance in the U.S. market [58] Question: What are the key initiatives for cost savings? - The company is targeting approximately CHF 200 million in combined fixed costs and productivity savings in fiscal year 2026 [50]