Kylie Jenner Contemplates Regaining Control of Her Cosmetics Line Amid Coty Disappointment

Kylie Jenner has explored redeeming ownership of the cosmetics line she sold to Coty Inc COTY three years ago after the multinational beauty company failed to meet her expectations.

The American socialite, media personality, and businesswoman discussed buying back her 51% stake in Kylie Cosmetics that Coty bought for $600 million in 2020. 

Coty acquired a 51% stake in Kylie Jenner’s cosmetics and skincare businesses in late 2019 under the leadership of CEO Pierre Laubies. However, Jenner still maintained creative control of the brand.

The parties have yet to agree on price and valuation, Bloomberg reports.

Jenner’s half-sister Kim Kardashian also discussed redeeming the 20% stake in her skincare line, SKKN by Kim, that Coty agreed to buy for $200 million the same year. 

Both women were frustrated with Coty’s brand management.

In a July presentation, Coty said makeup sales at Kylie Cosmetics grew by a double-digit percentage in the prior quarter, boosted by Macy’s Inc M stores, entry into the Dubai market, and the release of new Kylash mascara. 

Laubies stepped down shortly after the Jenner transaction, and Peter Harf, chairman of both Coty and its top investor, JAB Holding Company, closed the deal with Kardashian. 

Current CEO Sue Nabi, who took charge in September 2020, is focused on expanding the company’s skincare and fragrance offerings at mass-market and premium prices.

Coty stock is up 32% YTD. In August, the company reported fourth-quarter FY23 sales growth of 16% year-on-year to $1.35 billion, beating the consensus of $1.31 billion.

Adjusted EPS was $0.01, missing the consensus of 0.02.

Price Action: COTY shares are trading higher by 0.61% at $11.62 on the last check Thursday.