Pierre Laubies, the Coty Inc. CEO who struck the deal to invest in Kylie Jenner’s cosmetics brand valuing it at $1.2 billion, is leaving his post this summer.
Photo: David Dee Delgado/Getty ImagesCoty Inc. said Chief Executive Pierre Laubies will leave less than two years after he took over at the beauty and fragrance giant.
Mr. Laubies will be replaced this summer by Pierre Denis, the CEO of the Jimmy Choo fashion brand and a Coty director, the company said. Coty shares fell 4% on the news.
Mr. Laubies joined the maker of CoverGirl cosmetics, Clairol hair dye and OPI nail polish as CEO in November 2018 and initiated a strategic review to shrink the struggling company.
Coty’s third CEO in three years, Mr. Laubies set out to unwind some of his predecessors’ biggest moves. Coty abandoned a plan centered around adding businesses and churning out new products, and began putting businesses up for sale to help pay down debt.
The New York company, controlled by European investment firm JAB Holding Co., had floundered since it acquired dozens of beauty brands from Procter & Gamble Co. in 2016. The deal was supposed to create a behemoth that could rival industry giants Estée Lauder Cos . and L’Oréal SA in makeup, fragrances and hair care. Coty predicted annual revenue would double to $10 billion.
But the deal happened as consumers were beginning their shift away from mass-market skin-care and beauty products sold in drugstores and toward higher-end and niche brands fueled by celebrity founders and social media-driven marketing.
Last year, Coty took $4 billion in write-downs on the P&G business.
Most recently, Mr. Laubies struck a deal to invest in Kylie Jenner’s cosmetics brand, buying a controlling stake of the company in a deal that valued the social-media influencer’s startup at $1.2 billion.
Mr. Laubies, who came out of retirement to take the CEO job, told Coty directors earlier this month that he wanted to step down and felt the company would benefit from a chief executive with industry experience, according to people familiar with the matter. The board requested he stay on until the company completed sales of the hair-care and professional businesses, they said.
“We can’t help but view this as an incremental negative as a CEO transition in the midst of much so much organizational change brings additional uncertainty to the story,” Wells Fargo analyst Joe Lachky said in a note to investors.
Coty also said Pierre-Andre Terisse, who currently serves as chief financial officer, will assume the newly created post of chief operating officer while retaining his CFO duties.
Mr. Denis is currently CEO of luxury shoemaker Jimmy Choo, which was owned by JAB when he took the helm in 2012. It is now a unit of Capri Holdings Ltd.
Coty also said it has named Isabelle Parize and Justine Tan to its board. Ms. Parize is currently interim CEO of luggage maker Delsey; Ms. Tan is a partner at JAB.
Write to Sharon Terlep at sharon.terlep@wsj.com and Colin Kellaher at colin.kellaher@wsj.com
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