Coty walks away from Kim Kardashian’s beauty brand—The real reason behind the split

Coty Inc. has officially exited its investment in SKKN by Kim, selling its 20% stake in the beauty brand to SKIMS. The move marks a significant realignment in Coty’s brand portfolio while allowing SKIMS, the shapewear and lifestyle brand co-founded by Kim Kardashian, to consolidate its beauty and fashion ventures under a single entity.

With this transaction, Coty aims to leverage the proceeds for further debt reduction and to strengthen investments in its broader brand portfolio, reinforcing its focus on high-growth opportunities in both mass and prestige beauty segments.

Coty’s Partnership With Kim Kardashian: A Brief History

Coty first announced its investment in Kim Kardashian’s beauty business in 2020 as part of a broader strategy to align with high-profile celebrity brands. The company completed the $200 million transaction in 2021, acquiring a 20% stake in Kardashian’s beauty business with plans to develop SKKN by Kim as a premium skincare line.

However, with shifting market dynamics and Coty’s focus on long-term strategic priorities, the company has opted to step away from the partnership. SKIMS, which has grown into a billion-dollar brand with backing from investors like The Carlyle Group, will now oversee the future of SKKN by Kim, integrating beauty offerings into its expanding lifestyle empire.

Why Coty Exited SKKN By Kim

Coty’s divestment aligns with its ongoing efforts to refine its brand portfolio and enhance shareholder value. The company, known for its diverse range of mass-market and luxury beauty products, has been actively restructuring its business in recent years, focusing on innovation and expansion in key categories such as fragrance, color cosmetics, and skincare.

Anna von Bayern, CEO of Kylie Cosmetics and head of Kardashian’s beauty ventures at Coty, acknowledged the end of the collaboration while reaffirming Coty’s commitment to its other celebrity-led brands. She emphasized Coty’s expertise in developing global beauty products and highlighted the continued success of Kylie Cosmetics, which has grown by 1.5 times under Coty’s management.

The move also allows Coty to reallocate resources toward strengthening its market presence in key sectors, including prestige skincare and fragrance, which have seen significant consumer demand.

The Evolution Of SKKN By Kim

SKKN by Kim debuted in June 2022 as a high-performance skincare line co-developed with Coty. The brand launched with a nine-product collection designed to offer scientifically backed solutions for all skin types. Inspired by Kardashian’s personal skincare journey, particularly her experience with psoriasis, SKKN was positioned as a premium brand combining simplicity with dermatological innovation.

Under Coty’s ownership, SKKN benefited from the company’s global distribution and research expertise, gaining traction in the competitive beauty market. However, with SKIMS now taking full control, the brand is expected to undergo strategic changes to better align with SKIMS’ overarching vision.

SKIMS’ Expanding Influence In The Beauty Industry

SKIMS has rapidly evolved beyond shapewear into a dominant force in the fashion and lifestyle industry. With its valuation surpassing $4 billion, the company has gained a strong foothold in the apparel sector, collaborating with major retailers and expanding into new categories, including swimwear and loungewear.

The acquisition of SKKN by Kim underscores SKIMS’ broader ambitions in the beauty space. As consumers increasingly seek integrated fashion and beauty experiences, the move positions SKIMS to offer a more cohesive brand experience, blending apparel, skincare, and cosmetics under one umbrella.

Industry experts suggest that the integration of beauty into SKIMS’ portfolio could pave the way for future product expansions, including makeup and fragrance, potentially positioning SKIMS as a comprehensive lifestyle brand rivaling established players in the beauty and fashion industries.

What This Means For Coty And The Beauty Market

Coty’s decision to exit SKKN by Kim reflects a strategic shift toward consolidating its core business while capitalizing on high-growth beauty segments. The company remains a key player in celebrity-led brands, notably Kylie Cosmetics, which continues to see strong market performance.

For Kim Kardashian, the transition of SKKN under SKIMS allows greater creative and operational control, enabling her to steer the brand’s future direction more closely. This consolidation mirrors broader industry trends where fashion and beauty brands increasingly integrate their offerings to create holistic consumer experiences.

As Coty pursues its next phase of growth, the beauty industry will be watching closely to see how SKIMS positions SKKN in the competitive skincare landscape and whether the move will drive further expansion into beauty-related categories.