Coty announces board changes with resignation and new lead director appointment

Coty Inc . (NYSE:COTY) reported changes to its board of directors this week, according to a statement based on a recent SEC filing. The beauty company, which has seen its stock decline by over 30% in the past six months, maintains a market capitalization of $4.3 billion. According to InvestingPro analysis, the stock appears undervalued at current levels.

On Monday, Johannes Huth resigned as a director and Vice Chair of the Board after five years of service. Huth had served on the Audit and Finance Committee since 2022 and was Lead Independent (LON:IOG) Director since June 2023. The company stated that Huth’s resignation was not due to any disagreement with Coty Inc. regarding its operations, policies, or practices.

On Wednesday, the Board appointed Beatrice Ballini as Lead Independent Director, effective immediately. Ballini has been a member of the Board since September 2019 and currently serves as Chair of the Remuneration and Nomination Committee.

Coty Inc. is listed on the New York Stock Exchange under the ticker (NYSE:COTY). The information is based on a press release statement included in the company’s SEC filing.

In other recent news, Coty Inc. reported its fiscal third-quarter 2025 earnings, which fell short of analyst expectations. The company posted earnings per share of $0.01, missing the forecasted $0.06, and reported revenue of $1.3 billion, slightly below the anticipated $1.31 billion. These results have led to some analyst downgrades, with Deutsche Bank (ETR:DBKGn) lowering Coty’s stock rating from Buy to Hold and reducing the price target to $6.00, citing underperformance and valuation concerns. Similarly, Canaccord Genuity downgraded Coty from Buy to Hold, adjusting the price target to $5.00 from $8.00, due to continued declining trends in the company’s business.

Additionally, there are reports suggesting that Coty may be exploring a potential sale, possibly dividing its luxury and consumer divisions. Industry sources have indicated that Inter Parfums (NASDAQ:IPAR) is in discussions with Coty regarding its luxury brands, specifically the Burberry (LON:BRBY) license. However, these talks are still in early stages, and no definitive agreements have been reached. Despite these rumors, Jefferies maintained a buy rating on Coty, keeping the price target at $6.00, expressing a positive outlook on the company.

Coty has also announced a €370 million cost-saving program aimed at restructuring and enhancing operational efficiency, with plans for new product launches in the Prestige Fragrance segment. The company is focusing on improving its EBITDA margin and expects gradual improvement in fiscal 2026.

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