Kim Kardashian Could Buy Back Coty’s Stake in SKKN by Kim
Shares in French-American beauty company Coty Inc (COTY:US) were seen higher in early Wednesday trading after the Wall Street Journal reported that entrepreneur Kim Kardashian is in talks to buy back a stake in SKKN by Kim.
The beauty business, which she founded and in which she later sold a stake to Coty for about $200 million, is just one of several businesses that Kardashian owns or has a stake in. The deal price still hasn’t been agreed and talks could still break down, the WSJ report added.
The billionaire reality star is now looking to buy back the stake and ultimately expand SKKN’s beauty categories. The WSJ also notes that Kardashian’s Skims business was valued at $3.2 billion last year.
For Coty, this would represent a chance to cash in on its investment. The company also spent $600 million to acquire a majority stake in Kylie Jenner’s Kylie Cosmetics business in 2019.
The WSJ report comes just a few days after Coty hiked its adjusted full-year Ebitda forecast. The company now sees adjusted Ebitda between $965 million and $970 million, modestly up from the prior forecast of $955 million and $965 million.
Moreover, Coty raised its Q4 revenue growth outlook to +12-15%, up from the previous forecast for +10% growth.
Congressman Ro Khanna was buying COTY shares last year. In the meantime, COTY stock has doubled in value compared to May 2022, when Rep. Khanna was buying some shares.
