Coty Announces New CEO, Board Changes Following Troubled Q1
This article was originally published in The Rose Sheet
Coty reported Nov. 7 a Q1 revenue decline of 9.2% due to a constellation of supply-chain issues and continued Consumer Beauty weakness. Less than a week later – and two years after its completion of a $12bn merger with P&G’s beauty business – the firm announces Pierre Laubies as CEO, evidently drawn to his experience integrating combined assets at a Dutch coffee company.
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Coty purchased a 60% stake in Younique in early 2017, touting the startup as “one of the most engaging and fastest-growing e-commerce companies in beauty.” However, growth in the social-selling business has slowed over the past year and “presenter” levels have declined despite enhancements to Younique’s compensation program, making it an not-so-surprising discard in Coty’s simplification effort.
Following a third quarter marked by continued Consumer Beauty declines and downturns in its Luxury and Professional segments, Coty will present its promised turnaround plan July 1. Company leadership has emphasized a need for portfolio streamlining and targeted advertising and promotional investments; its strategy on the innovation front has been less clear to date.