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Kylie Jenner Gets $600 Million From Coty For 51% Stake In Kylie Cosmetics
Stormi can you say ca-ching?! Kylie Jenner launched her Kylie Cosmetics brand back in 2015 and it’s been all hers up until now — but news just broke that the 22-year-old billionaire beauty mogul has sold a 51% stake in the company to Coty for a whopping $600 million dollars after the brand was valued at $1.2 billion dollars according to Business of Fashion reports. Coty is the parent company of a number of successful beauty brands including Covergirl, OPI, Rimmel, GHD and Clairol.
People reports that Jenner and her team will continue to lead all creative efforts of product development and communication initiatives according to an official release:
“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world. I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media,” Jenner said in a release.
She added: “This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.”
Besides capitalizing on Kylie Cosmetics current success with makeup and skincare, we can likely look forward to a Kylie fragrance coming soon.
Coty’s Chief Creative Officer, Pierre Laubiues, said: “We are pleased to welcome Kylie into our organization and family. Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential.”
Through the partnership with Jenner, Coty sees much potential in expanding distribution of Kylie Cosmetics and Kylie Skin into more retailers, both in the U.S. and internationally. Coty will leverage its global knowledge in R&D, manufacturing, distribution, commercial and go-to-market expertise, according to the release.
“We don’t see any weaknesses. We see strength everywhere. We see strength in cosmetics. We see strength in skincare both digitally and in the launch in Ulta,” says Coty’s Chief Financial Officer Pierre-André Terisse in a conference call with investors.
According to Coty, Jenner’s impressive launch of Kylie Skin (the brand is on track to bring in $25 million sales in calendar year 2019) indicates that the success will not slow down. “The skincare is pretty early days but there is more than 50 percent repeat purchase among skincare customers,” Terisse says when asked if Jenner’s brands are just a “fad” during the conference call. “We’ve not seen any sign that this will not be a sustainable beauty brand. The fact that she has been able to move from cosmetics to skincare and get such success is already proof that there is something.”
Are you looking forward to a Kylie fragrance coming soon? If you were Kylie, how would you celebrate being $600 million richer?