Internal changes are shaking up the Coty Group and appear to be accelerating its ongoing turnaround plan. The American beauty giant, which owns brands such as Gucci Beauty, Chloé, and Rimmel, has just announced a reorganization of its governance to speed up the execution of its plan, dubbed “Coty.Cutated.”
Behind these announcements lie the objectives pursued by several major groups: simplifying the decision-making process, focusing investments on the most promising brands, and strengthening commercial momentum in a beauty market that is now experiencing some volatility.
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The Prestige Division at the Heart of the Reorganization
The main change concerns the Prestige division, which represents the strategic heart of the group. Markus Strobel, Executive Chairman and Interim CEO, will take direct control of the division’s commercial operations, thereby establishing a more direct link with regional managers.
This reorganization is also accompanied by several departures from senior management. Caroline Andreotti, head of business development for the Prestige division; Shimei Fan, chief scientist and head of sustainability; and Priya Srinivasan, chief human resources officer, will leave the group in the coming months.
At the same time, Coty is streamlining its organization by consolidating research and development, sustainability, and the supply chain into a single division, led by Graeme Carter, who has served as the group’s global head of supply chain since 2022. This will enable smoother and more efficient coordination of innovation, production, and the launch of new products.
A Response to Pressures in the Beauty Market
It is true that the financial climate necessitates this discipline. In the third quarter of 2026, Coty reported revenue of $1.28 billion, down 1% on a reported basis and 7% on a comparable basis. The Prestige segment, which accounts for approximately 65% of quarterly sales, remained stable at $830.9 million on a reported basis, but declined by 5% on a comparable basis.
These fluctuations reflect pressure from several fronts: the slowdown in travel retail, geopolitical tensions in the Middle East, a tougher competitive environment, and a downturn in the mass-market makeup sector, particularly in the United States.
The beauty group did, however, manage to reduce its debt to approximately $2.6 billion in the second fiscal quarter. For Coty, the challenge now is to prove that these internal initiatives can quickly translate into a return to growth, as the market seeks tangible and sustainable results.
Key Points:
• Coty has initiated a governance reorganization to accelerate the execution of its “Coty.Curated” strategic plan, including a refocusing of the Prestige division and a simplification of its organizational structure.
• The group has now consolidated research and development, sustainability, and the supply chain under a single leadership structure, with the goal of streamlining innovation and improving the time to market for its products.
• This transformation is taking place against a backdrop of slowing business activity. Despite a decline in sales, particularly in the Prestige division on a like-for-like basis, Coty is continuing to reduce its debt and seeking to return to sustainable growth.
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