Coty’s Stock Holds Steady Amid Reports That Kylie Jenner Wants Her Brand Back

Investors appeared unmoved by news that Kylie Jenner is reportedly following in her sister’s footsteps and looking to buy back her beauty business from Coty. The beauty company’s stock was up 0.9 percent at $11.66 in midmorning trading Thursday after Bloomberg reported that the reality star turned beauty mogul was looking to buy back the 51 percent stake of Kylie Cosmetics that Coty Inc. paid $600 million for in 2020 amid reported frustration over how it has managed the brand.

Representatives for Coty and Jenner did not immediately respond to requests for comment.

Coty acquired a 20 percent stake in Kardashian’s beauty business, then called KKW Beauty, for $200 million in 2021, implying that the brand was valued at $1 billion at the time.

During an interview with WWD last week, Coty’s chief executive officer Sue Nabi said she did not comment on speculation amid the Kardashian press reports. 

She did note, though, that the pricey direct-to-consumer skin care line, called Skkn by Kim, continues to perform well, while Kylie Cosmetics is growing by double digits.

Coty, which is developing a makeup line with Marc Jacobs, reported net revenue of $1.4 billion in its fourth quarter ended June 30, up 16 percent year-over-year. The prestige segment led during the quarter, with both reported and like-for-like sales growth of 21 percent versus the prior year.

Ashley Helgans, an analyst at Jefferies, said: “Looking at Euromonitor, Kylie Cosmetics sales were down 20 percent in 2022 from 2019, suggesting Kylie could buy her brand back for less than the $600 million purchase price. Today, the median sales multiple for a high growth beauty company is ~5.7x. We assume Kylie would pay a discounted multiple as the brand’s growth profile has slowed. If we assume Kylie’s revenues range between $150-$200 million today and a ~4.5x multiple is used, we estimate she would likely pay between $350-$450 million for her 51 percent stake.”

Related Posts

Emily Ratajkowski Revived This “Cheugy” Y2K-Era Staple

A runway fixture since 2015, Emily Ratajkowski has walked the most high-profile designer shows. There’s one catwalk, however, that can rival her esteemed fashion week romps: her daily dog-walking…

Blac Chyna Explains Why She Doesn’t Want Dream Kardashian to Work in Show Business Until She’s 18

The former reality star opens up about her daughter, Dream Kardashian, and her plans for the future. Blac Chyna knows that her kiddos will be set for a…

Paige Spiranac Promotes Latest Business Move With Racy Photo Post

Paige Spiranac is continuing to promote her new subscription-based personal website. Earlier this month, Spiranac announced she had joined Passes. Fans can receive exclusive photos and videos and chat with…

Emily Ratajkowski perfects summer street style with this season’s boots trend

Winter, spring, summer or fall, all you have to do is call” is the message from Carole King’s song You’ve Got A Friend, which has now become iconic. For…

Angela “Blac Chyna” White Signs “Multi-Million” Dollar Partnership with Passes

Passes, a subscription-based, community-driven platform, today announced entertainer and entrepreneur Angela White, also known as “Blac Chyna,” has joined the platform where she will share exclusive content with subscribers. Angela…

Paige Spiranac In Cheeky Bikini Shows ‘Best’ Backside ‘On The Planet’

Paige Spiranac was Little Miss Popular as her cheeky bikini photo earned high praise last summer. In July 2023, the former pro golfer had a fan on Instagram…

Leave a Reply

Your email address will not be published. Required fields are marked *