Coty Stock: Kardashian Beauty Line Partnership Ends

Cosmetics giant Coty Inc. has terminated its partnership with Kim Kardashian's beauty line SKKN by Kim and sold its 20% stake in the brand to SKIMS. The company, which owns major brands like CoverGirl, intends to use proceeds from this divestiture to reduce debt and invest in innovations across its broader brand portfolio. This strategic decision comes at a challenging time for Coty, which recently lowered its annual profit forecast following an unexpected decline in quarterly revenue. The company has been grappling with cautious consumer spending among price-conscious customers and difficulties in its Asian travel retail business, factors that have significantly impacted its overall performance in recent months.

Strategic Refocus on Core Brands

The original investment in Kardashian's beauty business was announced in 2020 and completed in 2021. Despite this exit, Coty's leadership emphasized continued collaboration with Kylie Cosmetics, which has grown 1.5 times over the past two years and remains a majority-owned brand in Coty's portfolio with perpetual licensing rights. Founded in Paris in 1904, Coty maintains an extensive portfolio of fragrance, cosmetics, and skin care brands serving consumers in more than 120 countries worldwide. With market-leading research and development capabilities alongside global manufacturing and distribution infrastructure, the company remains positioned to meet consumer demands across various price points and markets.

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Source StockWorld