(Reuters) – CoverGirl dad or mum Coty mentioned on Friday it might promote its 20% stake in actuality TV star Kim Kardashian’s magnificence model to her clothes line, SKIMS, consolidating the 2 companies below a single model.
Coty, which acquired a stake in Kardashian’s magnificence enterprise, SKKN, in 2021, mentioned it might use the proceeds from the sale to cut back debt and spend money on improvements throughout its broader model portfolio.
The New York-based lipstick maker has been struggling to carry gross sales, owing to muted spending from cost-conscious customers amid rising inflationary woes.
Final month, Coty minimize its annual revenue forecast and posted a shock drop in quarterly income, becoming a member of its bigger peer Estee Lauder in taking successful on gross sales from weak spot in Asia journey retail enterprise.
Anna von Bayern, CEO of Kylie Cosmetics and chief of Kim Kardashian’s magnificence enterprise at Coty additionally mentioned the corporate would proceed to work with Kylie Cosmetics model.
In 2023, Kim Kardashian was mentioned to be in talks with Coty to purchase again a minority stake in her magnificence agency as a part of an effort to increase SKKN’s magnificence classes.
Coty didn’t present the buying value of the stake and didn’t instantly reply to Reuters request for remark.
(Reporting by Anuja Bharat Mistry in Bengaluru; Enhancing by Vijay Kishore)
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