(Reuters) – Covergirl Parent Coty said Friday it will sell its 20% stake in the beauty brand of reality TV star Kim Kardashian, to the point where her clothing line stands out and consolidates both businesses under one brand.
Coty acquired a stake in Kardashian’s beauty business in 2021 SKKN said it will use the proceeds from sales to reduce debt and invest in innovations in its wider brand portfolio.
The New York-based lipstick maker has been working to boost sales, as inflationary dilemma keeps increasing consumer spending.
Last month, Coty cut its annual profit forecast and showed a staggering decline in quarterly revenue and joined its larger peer, Estee Lauder, to be selling under weakness in Asia's travel retail business.
Anna von Bayern, CEO of Kylie Cosmetics and head of Coty’s Kim Kardashian beauty business, also said the company will continue to work with Kylie Cosmetics Brand.
It is said that in 2023, Kim Kardashian spoke with Coty to buy back a minority stake in her beauty company as part of an effort to expand the SKKN beauty category.
Coty did not provide the purchase price of the shares and did not immediately respond to Reuters' request for comment.
(Reported by Anuja Bharat Mistry in Bangalore; Edited by Vijay Kishore)
