L'Oreal chairman says Coty lacks business model

April 27, 2026 - 11:47

The chairman of French cosmetics giant L'Oreal delivered a sharp critique of competitor Coty on Friday, dismissing any comparisons between the two firms and asserting that the smaller beauty group operates without any coherent business strategy. Speaking to investors and analysts, the executive made it clear that L'Oreal views Coty’s recent struggles as a fundamental failure of corporate structure rather than a temporary market setback.

“There is no business model at Coty,” the chairman stated bluntly, rejecting any suggestion that the two companies face similar challenges. The remarks come amid a period of turbulence for Coty, which has seen declining sales, leadership shakeups, and mounting debt. The L'Oreal chairman emphasized that his company’s long-term success is built on a clear strategic vision, strong brand portfolio, and disciplined investment in research and innovation—elements he claims are entirely absent at Coty.

Industry analysts noted that the comment reflects the widening gap between the two beauty conglomerates. While L'Oreal continues to dominate the global market with consistent growth across luxury, consumer, and professional divisions, Coty has struggled to stabilize its operations after a series of acquisitions and divestitures. The chairman’s dismissal underscores L'Oreal’s confidence in its own market position and its refusal to be grouped with a rival it considers directionless. The statement is likely to further pressure Coty’s management as it attempts to reassure investors and outline a turnaround plan.