After months of speculation, Kim Kardashian and Coty are parting ways.
Skims, Kim Kardashian’s shapewear and apparel company, has acquired Skkn by Kim from Kim Kardashian and Coty Inc.
Coty acquired 20 percent of KKW Beauty, for $200 million in 2021. Now that stake will belong to Skims, while Kardashian’s 80 percent stake will also be transferred to Skims. Coty plans to use the proceeds to progress its deleveraging strategy and invest in wider brand portfolio innovations.
Anna von Bayern, chief executive officer of Kylie Cosmetics and leader of Kim Kardashian’s beauty business at Coty, said: “Since Coty’s establishment over 120 years ago, we have remained at the forefront of consumer innovation. We are the go-to partner for global brands, fashion houses and celebrities looking to create leading beauty products. 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 1.5-times in the last two years and where we own the majority, as well as hold the perpetual license.”
Terms of the deal were not disclosed, apart from that through this acquisition, Skims will open its doors in 2026 to expand into beauty, skin care and fragrance.
“My mission has always been to create products that resonate deeply — whether it’s shapewear and lingerie that empowers or makeup and skin care that transforms,” said Kardashian, Skims’ chief creative officer and cofounder. “Uniting everything under the Skims brand streamlines that vision.”
Jens Grede, CEO and cofounder of Skims, added, “This acquisition isn’t just growth. It’s about the strength of our brand and our ability to enter a new category with authority.”
Skims snagged a $4 billion valuation in 2023 by raising $270 million in a series C funding round, led by Wellington Management and included funds from Greenoaks Capital Partners and existing partners D1 Capital Partners and Imaginary Ventures. Kardashian remains the company’s single biggest shareholder, and she and Grede still own a majority stake. Speculation continues that Skims is looking to do an initial public offering.
Kardashian launched KKW Beauty in 2017 with contouring products, and also introduced KKW Fragrance.
Kardashian shuttered both brands in 2022, with a plan to return with “a completely new brand with new formulas that are more modern, innovative and packaged in an elevated and sustainable new look,” she said in a statement at the time.
Coty helped Kardashian expand into skin care in 2022 with Skkn by Kim, a $630, nine-step system, including a toner, exfoliator, hyaluronic acid serum, vitamin C8 serum, face cream, eye cream, oil drops and a night oil.
In January 2024, the brand dove back into color cosmetics, introducing Skkn by Kim Makeup on Jan. 26.
Coty also bought a 51 percent stake in Kylie Jenner’s business, Kylie Cosmetics, for $600 million. While rumors have circulated about the future of that partnership, WWD understands that it will remain with Coty, which has the perpetual license.
For Coty, betting on the Kardashian-Jenner family provided a means of accelerating the direct-to-consumer business, which was a key focus for CEO Sue Nabi as she looked to turn around the group. Sources told WWD it makes the most sense to focus on Kylie Cosmetics, of which it is the majority shareholder.
Most recently, while the fragrance effect has boosted Coty for the past year, it was not enough to offset a trio of impacts including weak demand in Asia, FX headwinds and a slowing mass market from weighing on sales in the second quarter.
Net revenue declined 3 percent to $1.66 billion in its fiscal second quarter ended Dec. 31, below Wall Street’s expectations for $1.71 billion. On a like-for-like basis, sales fell 1 percent.
