Kim Kardashian merges Skkn with Skims: what Coty’s withdrawal conceals

Behind this financial operation lies a bold strategic repositioning. And a new chapter for Kim Kardashian’s empire.

Coty draws the line at Skkn

On Friday, multinational Coty, parent company of CoverGirl, announced the sale of its 20% stake in Skkn by Kim, the beauty line launched by Kim Kardashian. The buyer? None other than Skims, the ready-to-wear brand founded by the star herself. This decision ratifies the merger of her two flagship companies, a move that questions as much as it intrigues.

Acquired in 2021 with a view to expanding into premium cosmetics, this stake has now been resold to enable Coty to reduce its debt and reallocate investments to its other brands. This withdrawal comes at a time when the New York-based group has posted one disappointing result after another: a surprise drop in sales, a downward revision of its annual profit forecasts and a slowdown in consumer spending.

Kim Kardashian strategy: refocus for better control

Kim Kardashian is back in control. By integrating Skkn into Skims, the billionaire is capitalizing on the strike force of her textile brand, already valued in the billions. The ambition is clear: to create a unified lifestyle platform, similar to what Rihanna is attempting with Fenty. Rumors persist of make-up and skincare lines integrated into future capsule collections.

This refocusing follows discussions initiated in 2023 to buy out Coty’s stake. A strategy of autonomy that contrasts with past dependence on cosmetics conglomerates.

And where does Coty fit in?

The company, which maintains close ties with Kylie Cosmetics via Anna von Bayern, is now focusing on portfolio innovation rather than celebrity licensing. A trend that many analysts consider salutary in a rapidly changing beauty market.

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