After months of speculation, the powerhouse partnership between Kim Kardashian and Coty has officially concluded, marking a significant shift in their business dynamics. Kim Kardashian’s shapewear brand, Skims, has decided to acquire Skkn by Kim from Coty, a strategic maneuver that reflects her vision for the future of her beauty empire. This acquisition not only consolidates Kim’s beauty endeavors under the Skims brand but also transfers Coty’s previously owned 20 percent stake in KKW Beauty to Skims. In contrast, Kardashian’s remaining 80 percent stake will similarly shift to Skims, representing a complete takeover of her beauty line. Coty, which has been actively reevaluating its portfolio, plans to use the proceeds from this deal to accelerate its deleveraging strategy and make investments in a broader array of brand innovations.
In a recent statement, Anna von Bayern, the CEO of Kylie Cosmetics and head of Kim’s beauty business at Coty, expressed gratitude for the partnership, emphasizing the importance of innovation in Coty’s longstanding history. She highlighted their success in dramatically boosting the Kylie Cosmetics brand over the past two years, showcasing Coty’s ability to develop successful beauty products in collaboration with high-profile celebrities. Although the exact financial terms of the Skims acquisition have not been disclosed, it signals a new avenue for Skims to delve into beauty, skin care, and fragrance, with plans to officially launch these products in 2026. This transition is important not just financially but also in terms of maintaining clarity in the brand’s identity, something that Kardashian passionately articulated.
Kim Kardashian’s journey in the beauty industry began with the launch of KKW Beauty in 2017, initially gaining attention for contouring products and fragrances. However, she made the bold decision to close both KKW Beauty and KKW Fragrance in 2022 to rebrand and revamp her beauty offerings. Kardashian’s intent was clear: she wanted to introduce new, modern, and sustainable formulations that met consumer expectations in today’s beauty landscape. Coty played a crucial role in this transition, helping her establish Skkn by Kim, a comprehensive nine-step skincare system launched in 2022 and focused on efficacy and sustainability. Just recently, the brand ventured back into color cosmetics with the debut of Skkn by Kim Makeup, indicating a strong commitment to expanding its product line and meeting diverse consumer needs.
Despite Coty’s successful efforts to capitalize on the Kardashian-Jenner influence, their financial performance has fluctuated. Coty initially secured a 51 percent stake in Kylie Cosmetics for $600 million, a bold investment that was intended to boost the company’s direct-to-consumer strategy under CEO Sue Nabi’s leadership. However, recent reports indicate that while the fragrance category has given Coty a financial boost, issues such as weak demand in Asian markets, foreign exchange challenges, and a slowing mass market have put significant pressure on their overall sales. In the second quarter of their fiscal year, Coty’s net revenue fell by 3 percent to $1.66 billion, falling short of market expectations. This underperformance suggests that shifting consumer preferences, particularly in beauty, demand agile strategies.
In light of Skims’ recent valuation of $4 billion achieved after a successful funding round, Kim Kardashian remains at the helm of a rapidly growing brand as she navigates her business pursuits. Her and Jens Grede’s leadership have been pivotal in transitioning Skims from a shapewear line to a multifaceted beauty brand—an ambition that enhances the overall brand strength and market authority. The speculation surrounding an initial public offering (IPO) for Skims adds another layer of excitement and potential to the growing enterprise. Kardashian has continuously positioned herself not only as a beauty mogul but also as an innovator, seeking to resonate with consumers through empowering products.
Ultimately, the unraveling of the partnership between Coty and Kim Kardashian signifies a new beginning for both the beauty mogul and Skims. By taking her beauty brand completely under Skims, Kardashian is streamlining her vision and aligning her diverse offerings under one unified identity. As the beauty landscape continues to evolve, it will be intriguing to see how Skims expands its product lines in beauty and skincare while maintaining its ethos of empowerment. In this competitive market, efficiency and clarity in branding are essential, and Kardashian seems poised to lead her business strategy towards a bright and innovative future. The future holds significant promise not only for Skims but also for the beauty industry as Kardashian’s reinvention unfolds.