Coty’s New Leadership Revives Investor Confidence; Now Consumer Biz Must ‘Earn Right To Grow’
Coty’s improved second-quarter results, and Pierre Laubies’ remarks in his first earnings call as the company’s chief exec, charmed the investment community, though a detailed strategy from management – including its plan for the ailing Consumer Beauty unit – is still to come.
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Sue Nabi, who started as CEO at Coty in September, believes the company can do better than CoverGirl’s previous relaunch, which championed individual expression with the somewhat head-scratching tag, “I Am What I Makeup.” The brand’s future is in “clean,” she suggested during Coty’s first-quarter earnings call.
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.
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.