COTY News & Events

Coty (COTY) announced that it has entered into an agreement to transition the Gucci Beauty license back to Kering (PPRUY) for a consideration of approximately $400M. Under the terms of the agreement, Coty will continue to operate the Gucci Beauty brand through at least June 30, 2027, ending the license approximately one year ahead of the original license term. Markus Strobel, Executive Chairman and Interim CEO of Coty, said: "This agreement delivers a favorable outcome to conclude the Gucci Beauty license, enabling Coty to redeploy capital and focus on our priority brands. It recognizes the substantial value created in Gucci Beauty under our stewardship and enhances our financial flexibility." As part of the agreement, Coty received $250M in cash at signing and will receive an additional $150M no later than September 30, 2027, of which up to $30M is contingent on certain criteria. Coty has also agreed to sell to Kering an amount of Gucci Beauty inventory sufficient to support the transition. Coty estimates cash taxes of approximately $30M in connection with this transaction. The transaction proceeds will be used to support debt reduction, investment in its core prestige fragrance and beauty portfolio, and organizational optimization to reflect the new scope of the business. In connection with the transaction, Coty and Kering have agreed to a mutual resolution of all pending litigation and related claims concerning the Gucci Beauty license, allowing the parties to focus on an orderly transition and their respective future strategic priorities.

Coty announced a set of organizational changes that advance its Coty.Curated strategy by bringing commercial decision-making closer to the center and enabling the company to move faster. Executive Chairman and interim CEO Markus Strobel will take direct control of Prestige commercial operations, with Coty's regional leaders reporting to him. The change brings leadership closer to the markets, speeds up decision-making, and sharpens accountability for sell-out and market share. As part of these changes, Coty will integrate Prestige R&D and sustainability with supply chain into one simplified function under the interim leadership of Graeme Carter, Chief Supply Chain Officer. Bringing prestige innovation, sustainability, and supply chain together under one leader streamlines how the company develops and delivers behind its core businesses. Gordon von Bretten, President of Consumer Beauty, will continue to drive an already integrated model in Consumer Beauty. Caroline Andreotti, Chief Commercial Officer Prestige, will leave Coty at the end of September after three years in the role and almost two decades with the company. Shimei Fan, Chief Scientific and Sustainability Officer, will leave Coty at the end of August. Priya Srinivasan, Chief People and Purpose Officer, has decided to step down for personal reasons and will leave Coty in August. Severine Charbon will join Coty as Chief People and Purpose Officer effective September 1. She brings more than 25 years of international experience in talent strategy and organizational transformation, most recently as Chief Talent Officer International at Publicis Groupe.