Coty (COTY) named Procter & Gamble veteran Markus Strobel interim CEO effective January 1, replacing Sue Nabi amid a strategic review and shares down over 50%.
The leadership change signals deeper struggles at the CoverGirl parent, which has underperformed amid mounting competitive pressures in the beauty sector.
Key Takeaways
- Markus Strobel replaces Sue Nabi as interim CEO January 1
- Coty shares have plummeted over 50% this year
- Strategic review underway amid ongoing operational challenges
Market Reaction & Context
Coty’s stock has cratered more than 50% in 2024, significantly underperforming the broader beauty sector 1. The cosmetics giant’s struggles contrast sharply with rivals like L’Oréal and Estée Lauder, which have maintained more stable performance despite industry headwinds.
Strobel brings extensive consumer goods experience from his tenure at Procter & Gamble, where he held senior leadership roles across multiple product categories. His appointment as both interim CEO and chairman consolidates leadership during the transition period.
Leadership Overhaul
The management shake-up extends beyond the CEO role, with board veteran Peter Harf retiring from his position 1. Nabi’s departure marks the end of her efforts to revitalize the company’s portfolio of brands including CoverGirl, Rimmel, and luxury fragrances.
The timing of the leadership change coincides with broader industry challenges, including shifting consumer preferences and increased competition from direct-to-consumer beauty brands. Coty has struggled to maintain market share amid these evolving dynamics.
Strategic Review Implications
The ongoing strategic review suggests potential portfolio changes or operational restructuring ahead. Industry analysts view such reviews as precursors to asset sales, brand divestitures, or major cost-cutting initiatives.
Strobel’s P&G background could prove valuable as Coty seeks to streamline operations and improve margins. His experience with large-scale consumer brands aligns with Coty’s needs as it navigates competitive pressures in both mass and prestige beauty segments.
Outlook
The interim nature of Strobel’s appointment indicates Coty’s board may conduct a broader CEO search while addressing immediate operational priorities. The company faces pressure to stabilize performance and restore investor confidence following the significant share price decline.
Market watchers will focus on Strobel’s initial strategic priorities and any announcements regarding the ongoing review process. The new leadership team must balance short-term stabilization with longer-term growth initiatives in an increasingly fragmented beauty market.
Not investment advice. For informational purposes only.
References
1(2025-12-22). “Struggling Coty names P&G veteran as interim CEO as Nabi leaves”. Reuters. Retrieved December 22, 2025.
2(2025-12-22). “Coty appoints former Procter & Gamble executive Markus Strobel as interim chief executive”. Fashion Network. Retrieved December 22, 2025.
3(2025-12-22). “Coty appoints Markus Strobel as interim CEO starting January”. Global Banking and Finance. Retrieved December 22, 2025.
4(2025-12-22). “Dow Jones Top Company Headlines at 7 AM ET”. Morningstar. Retrieved December 22, 2025.