Kylie Jenner's cosmetics stock drops to a new month low

Kylie Jenner’s cosmetics company stock drops to a new month low after reality star banked $600M selling majority stake to beauty giant Coty

  • Kylie Jenner sold more than half of her company, Kylie Cosmetics, to beauty giant Coty this last week
  • Coty stocks were the lowest they have been all month following the sale
  • Three other beauty brands also experienced significant losses at the stock market this last week 

She sold a 51% stake of her company, Kylie Cosmetics, to beauty giant, Coty, on Monday for $600 million. 

And while she still retains the other 49%, Coty sales took a major hit this week on Wall Street, as reported by TMZ.

Sales for Coty stocks were the lowest they’ve been all month, reaching a low of $11.53.  

Was the purchase the right move? After selling 51% of Kylie Cosmetics to Coty on Monday, the beauty giant’s shares hit a new month low on Friday with just $11.53

The day after the big announcement, the brand also responsible for Rimmel, OPI and CoverGirl – among others, topped the share charts at $12.22. 

However, that high didn’t last and continued to drop for the rest of the week.  

Friday saw Coty cash out at $11.53 – approximately 5.5% lower than when Kylie cashed out. 

Going down: The day after the big announcement, the brand also responsible for Rimmel, OPI and CoverGirl – among others, topped the share charts at $12.22. However, Friday saw Coty cash out at $11.53 – approximately 5.5% lower than when Kylie cashed out

Still her baby! Kylie still holds 49% of her company and plans on continuing to grow it via her online promotion 

But it wasn’t all bad news for Coty, with three out of the top four major beauty brands taking significant losses this week. 

The four top brands are, The Estée Lauder Companies Inc. (Clinique, M.A.C, Origins),  Inter Parfums, Inc. (Jimmy Choo, Karl Lagerfeld, Anna Sui, Coach, Guess), Nu Skin Enterprises, Inc. and Coty. 

It was reported in June 2019 that shares of the cosmetics distributor, Coty, was up more than 100% in 2019. 

Rumors began circulating at the time that they were planning to take over Kylie’s $1.2 billion dollar corporation. 

New partnership! Kylie confirmed the news on Twitter on Monday 

Getting bigger and bigger! Kylie expanded her ecommerce store in Ulta last year 

‘Coty can’t really afford to be making sizable acquisitions at the moment, albeit we do think JAB would find a way to get creative for the right asset,’ CNBC reported in June. 

JAB Holdings is a private equity firm that took control of Coty in April. The move was well respected by analysts on Wall Street. 

Kylie Cosmetics bought in about $177 million in revenue last year which was up by 40% from 2017, according to Citi Research analyst, Wendy Nicholson. 

‘I´m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,’ she said in a statement on Monday. 

Proud mom! Momager Kris Jenner also couldn’t be more proud of her daughter. ‘This is what she wants to do for the rest of her life,’ said Kris Jenner, 64, in an interview with CNBC’s Squawk Box on Tuesday

She later made the announcement on Twitter: ‘I can’t wait for all the amazing things to come for @kylieskin and @kyliecosmetics! I’m excited to partner with @cotyinc to continue to expand my brands globally..This is only the beginning!’   

Momager Kris Jenner also couldn’t be more proud of her daughter.

‘This is what she wants to do for the rest of her life,’ said Kris Jenner, 64, in an interview with CNBC’s Squawk Box on Tuesday.  

‘Yesterday was a really big day for Kylie and our team at Kylie Cosmetics.’ 

And the rest was history! Kylie started the company in 2015 (pictured) with merely some lip kits

She continued: ‘[It was] truly a moment for our family to be proud. It’s kind of a crystallization of all our work.’  

The CEO of Jenner Communications then told the show about her youngest daughter’s plans for the future.

‘I think the goal is to just keep building Kylie’s existing beauty business into a global powerhouse brand. That’s the vision.’

‘[Kylie] talks about [the business] all the time. Twenty years from now she sees herself doing this and maybe passing it down to her daughter [21-month-old Stormi]’.

Kris on her daughter’s vision: ‘[Kylie] talks about [the business] all the time. Twenty years from now she sees herself doing this and maybe passing it down to her daughter [21-month-old Stormi]’ (pictured 2019)

 

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