
Shares of beauty giant Coty Inc. (NYSE: COTY) are up about 2% on Monday after the company announced it will take a majority stake in Kylie Cosmetics.
The deal, expected to close in the third quarter of fiscal 2020, gives Coty a 51% stake in the makeup company for USD 600 Million. Kylie Jenner, the 22-year-old founder of the Kylie Cosmetics, and her team will continue to lead the company’s creative efforts related to products and communications.
Coty will take on the responsibility of expanding Kylie Cosmetics’ portfolio. In addition, it will act as a licensee for skincare, fragrances, and nail products.
“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,” said Kylie Jenner. “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. 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.”
Known for nude lip liners and lipsticks, Kylie Cosmetics this spring added a skin-care line. Ulta Beauty Inc. (NASDAQ: ULTA) last year began carrying the makeup at its more than 1,100 stores. Kylie Cosmetics is on track for roughly USD 200 million in sales this year, Coty said.
The success of Kylie Cosmetics is part of a wave of emerging cosmetics lines capitalizing on celebrity founders and social media-driven marketing. As sales of market mainstays like CoverGirl and Revlon have floundered in recent years, upstarts such as Kylie and Glossier have taken off.
Stock price
DAY LOW/HIGH
52 week low/high
Related Articles
Costco Shares Surge As Coronavirus Outbreak Causes Stockpiling Rush
After the coronavirus outbreak reached the U.S. nervous customers started loading up on goods, which caused Costco Wholesale Corporation's (NASDAQ: COST) stock to climb. Stock of the wholesale Chain was up 6% in the stock market today. Costco is...
Disney Shares Fall After CEO Iger Announces to Step Down
The Walt Disney Company (NYSE: DIS) Board of Directors announced that Robert A. Iger is stepping down from his position as CEO after 15 years, effective immediately, and the Company’s shares started tumbling. “With the successful launch of...
Simon Property Group to Acquire REIT Taubman Centers
On Monday, Simon Property Group Inc. (NYSE: SPG) announced it has agreed to acquire real-estate investment trust Taubman Centers Inc. (NYSE: TCO) in an all-cash deal valued at USD 3.6 billion. Taubman shares surged 53% early Monday. This year,...