Coty concludes partnership with SKKN selling 20% stake to SKIMS
This is part of Coty’s strategy to streamline its portfolio and focus on core brands.
USA – Coty Inc. has officially concluded its collaboration with the SKKN by Kim brand by selling its 20% stake to SKIMS.
This strategic move allows SKIMS to unify its beauty and lifestyle ventures, including clothing, cosmetics, skincare, and fragrance, under one cohesive brand.
Coty initially invested in SKKN beauty business in 2020, completing the transaction for US 200 million in 2021.
The sale aligns with Coty’s broader strategy to streamline its portfolio, focus on innovation, and strengthen its financial position through deleveraging efforts.
Coty plans to use the proceeds from this transaction to invest in its broader brand portfolio, which includes prestige and mass-market beauty products.
Anna von Bayern, CEO of Kylie Cosmetics and leader of Kim Kardashian’s beauty business at Coty, says: “Since Coty’s establishment over 120 years ago, we have remained at the forefront of consumer innovation.”
“ 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 of which we own the majority and hold the perpetual license.”
Despite exiting SKKN, Coty remains a key player in the celebrity beauty, continuing its successful partnership with Kylie Cosmetics, where it holds a majority stake and perpetual license.
This decision reflects Coty’s commitment to evaluating and optimizing its diverse portfolio to drive growth across key categories such as fragrance, skincare, and color cosmetics.
The company leverages its extensive R&D capabilities and global distribution network to capture consumer demand across various price points and markets.
Coty recently reported its financial results for the Q2 FY25, posting a net revenue of USD 1.669 billion, reflecting a 3% decline compared to the same period in the previous year.
The company’s adjusted earnings per share (EPS) stood at USD 0.11, down from USD 0.25 in the prior year.
By the end of the quarter, Coty’s total debt was USD 3.459 billion, and its financial net debt was USD 3.209 billion.
Meanwhile, the company announced that Cruelty Free International has approved its Paixão brand in Brazil under the Leaping Bunny programme.
Paixão is renowned for its body oils and moisturizers, distinguished by their captivating and long-lasting fragrance.
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