Coty Shares Gain After Naming Sue Nabi As New CEO

Beauty industry veteran Sue Nabi will take on the role of Coty CEO in September, putting the number of woman leaders at S&P 500 companies at just 28.
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Coty Inc.  (COTY) - Get Report shares extended gains Thursday after the luxury cosmetics brands group named beauty industry veteran Sue Nabi as its new CEO.

Nabi, who has lead by Lancome and L'Oreal, will take on the role of Coty CEO in September, the company said, with current boss Peter Harf moving to the role of executive chairman. Nabi also co-founded the Orveda luxury skincare line. 

Nabi's appointment puts the number of women CEOs in the S&P 500 at just 28, or around 6% of the broadest benchmark of U.S. listed companies.

“Sue is renowned as a visionary and ongoing game-changer whose outstanding creativity is celebrated in the beauty industry. I am proud that she now wants to bring her unique sense of inspiration to Coty,” Harf said in a statement. 

“Peter and Coty’s leadership have laid the groundwork to revitalize an iconic beauty business,” said Nabi. “I’ve been following their progress avidly and am inspired and energized by the opportunity to proudly lead the global Coty team into the future as we build the new, more modern Coty.”

Coty shares were marked 3.24% higher in early trading following news of Nabi's appointment to change hands at $4.46 each. 

Last month, Harf was elevated to the role of CEO, replacing the outgoing Pierre Laubies, amid a senior management shake-up that followed reports that alleged Kylie Jenner had overstated her personal wealth to boost the value of a brand sold to the cosmetics group, as well as a company-wide strategic review that was launched earlier this year. 

Coty recently extended its reach into the beauty business after agreeing to buy a $200 million stake in Kim Kardashian-West's KKW Beauty line, a move that valued the entrepreneur's company at around $1 billion.