New Owners of Kylie Cosmetics Suffer Stock Decline Following Majority Stake Purchase
Written by SOURCE on November 23, 2019
Kylie Jenner sold the majority stake of her Kylie Cosmetics company to Coty Inc. for a reported $600 million this month.. The new owners will be in charge of the marketing side, while Kylie herself will remain the public face of the brand. The purchase initially brought Coty’s shares up, but TMZ reports that there’s been a sudden decline over the past week.
When trading closed this week, Coty stocks were down from $12.22 to $11.53 just after purchase of Kylie’s majority stake. Following the initial increase, the shares continued to trend downward to roughly 5.5 percent from its position at the start of the week. Analysts expected that the ownership of Kylie Cosmetics would result in a surge, but ultimately they dropped to the lowest they have been in around a month.
The news of the purchase indicated that Coty was looking to revive itself after losing around half of its value since 2016. Over the past year, the company has taken $4 billion in write-downs. Kylie Cosmetics, the enterprise mostly to thank for Kylie Jenner becoming the wealthiest member of the Kardashian-Jenner family with a net worth of $1 billion, is still on track to make $200 million this year.
Kylie Cosmetics launched in 2015 before making its way to over 1,100 stores in 2018 thanks to a partnership with Ulta Beauty Inc.
