Coty’s new chief executive officer, Markus Strobel, said the group’s performance over the past 18 months had been disappointing.
After reporting slightly higher-than-expected second-quarter revenues for its 2025-2026 fiscal year on Thursday, February 5, the perfume and cosmetics giant — owner of the CoverGirl, Rimmel, Lancaster and Sally Hansen brands — withdrew its full-year forecast.
Coty announced a 0.5% increase in revenue for its second quarter ended December 31, to USD 1.68 billion, slightly above analysts’ expectations. However, the group expects a reduction in its gross margins and results during the third quarter compared to the same period of the previous year, mainly due to an increase in advertising spending to regain market share.
Markus Strobel, who succeeded Sue Nabi on January 1, called for better discipline and execution in order to capitalize on Coty’s strengths and improve its financial performance. He wants to accelerate the strategic review launched in September, part of Coty’s effort to refocus on prestige fragrances. The review could lead to divest consumer brands such as CoverGirl and Rimmel.
The new CEO has introduced a strategic plan, dubbed “Coty. Curated,” designed to streamline group management by concentrating on key brands, including Kylie Cosmetics — which has doubled in size over the past three years — and long-term licenses with Burberry and Marc Jacobs.
The case for Coty narrowing its focus is strengthened even further.
