Coty, the parent company of CoverGirl, announced on Friday that it would sell its 20% stake in Kim Kardashian’s beauty brand, SKKN, to her clothing line, SKIMS. This move consolidates the two businesses under a single brand.
Coty, which had acquired a stake in Kardashian’s beauty business in 2021, revealed that the proceeds from the sale would be used to reduce its debt and invest in innovation across its broader brand portfolio.
The New York-based cosmetics company has faced challenges in driving sales, particularly due to cautious spending from cost-conscious consumers amid ongoing inflation concerns.
In an attempt to recover, Coty revised its annual profit forecast last month and reported an unexpected dip in quarterly revenue. The company’s sales were also affected by weakness in the Asia travel retail business, an issue that also hit its larger competitor, Estee Lauder.
Anna von Bayern, CEO of Kylie Cosmetics and leader of Kardashian’s beauty business at Coty, confirmed that the company would continue its partnership with the Kylie Cosmetics brand.
In 2023, Kim Kardashian was reportedly in talks with Coty to buy back a minority stake in her beauty brand as part of plans to expand SKKN’s beauty offerings.
Coty did not disclose the price of the stake or immediately respond to Reuters’ request for further comment.
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