Coty is selling its 20% stake in SKKN, the cosmetics and skincare brand founded by media personality Kim Kardashian.
Following the transaction, control of the beauty brand will transfer to Kardashian’s shapewear label, SKIMS, which has seen rapid growth and carries a valuation of US$4bn.
Coty first announced the investment in Kardashian’s business in 2020 and completed the $200m transaction in 2021. At the time, the deal was part of Coty’s efforts to reinvigorate and modernise its product offering after a period of weakening performance. It subsequently launched the SKKN collection in June 2022, with products including a cleanser, toner, exfoliator, face cream, and night oil inside refillable packaging. The brand has since expanded into the cosmetics market.
Coty stated that it would use the proceeds from the sale of SKKN to reduce debt and invest in innovations across its broader brand portfolio. The company has seen weaker sales in recent months as consumers cut back on their spending amid continued cost of living pressures.
Kylie Cosmetics, the brand set up by Kylie Jenner, the half-sister of Kardashian, will continue its existing collaboration with Coty.
Anna von Bayern, CEO of Kylie Cosmetics and leader of Kim Kardashian’s beauty business at Coty, said: “We are the go-to partner for global brands, fashion houses, and celebrities looking to create leading beauty products. I would like to thank Kim for the partnership and look forward to continuing our work on our hugely successful Kylie Cosmetics brand, which we have grown by 1.5x in the last two years and where we own the majority, as well as hold the perpetual license.”
