Dive Brief:
- Coty sold its 20% stake in the Kim Kardashian-backed beauty brand Skkn by Kim to Skims, the company announced Friday. The financial terms of the deal were not disclosed.
- Following the close of the transaction Skims will unite its beauty and lifestyle ventures under one brand.
- Coty first announced its partnership with Kardashian in 2020 and acquired a 20% stake in the beauty brand the following year for $200 million.
Dive Insight:
When Coty and Kardashian first announced their partnership, the goal was to further the beauty brand’s business globally. Now, Coty’s divestment in Skkn will enable Kardashian to consolidate her brands, marking a “pivotal” expansion for Skims, taking its portfolio beyond apparel, the company said in a separate release.
"My mission has always been to create products that resonate deeply — whether it's shapewear and lingerie that empowers or make-up and skincare that transforms," Kardashian, Skims chief creative officer and co-founder, said in a statement. "Uniting everything under the Skims brand streamlines that vision."
With the acquisition, Skims will expand into beauty, skin care and fragrance. Coty will use the proceeds of the deal to make progress with its deleveraging strategy and invest in its portfolio, according to the company.
While Skkn by Kim will no longer be a part of Coty’s brand portfolio, the company boasts a long list of notable fragrance and cosmetic brand partnerships, including with Adidas, Vera Wang and Calvin Klein. Plus, another member of the Kardashian-Jenner family — Kylie Jenner — still has three brands under the Coty umbrella: Kylie Skin, Kylie Cosmetics and Kylie Baby.
“I would like to thank Kim for the partnership and look forward to continuing our work on our hugely successful Kylie Cosmetics brand, which we have grown by 1.5x in the last two years and where we own the majority, as well as hold the perpetual license,” Anna von Bayern, CEO of Kylie Cosmetics and leader of Kim Kardashian’s beauty business at Coty, said in a statement.
Skims was founded in 2019. By 2023, the company raised $270 million in Series C funding, which valued the company at $4 billion.
Skims began expanding its product assortment and physical footprint. Last year, the brand debuted its first permanent storefront in Washington, D.C.’s Georgetown neighborhood and announced plans to open more locations in New York and Los Angeles.
Earlier this year, Nike and Skims announced that the companies were launching a new brand, NikeSkims. The first collection of apparel, footwear and accessories is set to hit select stores and Nike’s website this spring. NikeSkims will expand globally next year, with plans to enter into new markets, stores and wholesale partnerships.
