COTY - Coty rises as Kim Kardashian said to want SKKN stake back

2023-07-11 17:01:54 ET

Coty ( NYSE: COTY ) rose 4% in late trading after a report that Kim Kardashian is in talks to buy back the minority stake of her beauty company that she sold to the company.

Coty ( COTY ) bought a 20% stake in KKW Holdings, now known as SKKN BY KIM, three years ago when the Kardashian company was valued at $1B. The Wall Street Journal reported that there isn’t a sales price yet and talks may break down, citing people familiar with the matter.

Kardashian wants the stake back so she can expand SKKN's beauty categories, the newspaper reported. The brand currently sells skincare products.

Coty ( COTY ) recently increased forecasts, including an expectation for up to 15% organic growth for Q4, up from 10%, thanks to recovery in China and its prestige products, which include Burberry and Tiffany & Co. fragrances. COTY also raised core revenue growth for the fiscal year to up to 11% from between 9% and 10%.

Coty ( COTY ) closed down 0.7% .

More on Coty:

• Coty: Great Growth Potential From Immense Opportunities
• Coty shares move higher after revenue forecast bump; risks remain
• Coty raises Q4 and FY2023 outlook ahead of its investor event in Paris
• Coty stock carries higher on earnings beat, raised profit forecasts

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