Investors appeared unmoved by news that Kylie Jenner is reportedly following in her sister’s footsteps and looking to buy back her beauty business from Coty.
The beauty company’s stock was up 0.9 percent at $11.66 in midmorning trading Thursday after Bloomberg reported that the reality star turned beauty mogul was looking to buy back the 51 percent stake of Kylie Cosmetics that Coty Inc. paid $600 million for in 2020 amid reported frustration over how it has managed the brand.
Representatives for Coty and Jenner did not immediately respond to requests for comment.
The news comes just weeks after it was reported that Kim Kardashian was also in talks to regain total ownership of her beauty business from Coty.
Coty acquired a 20 percent stake in Kardashian’s beauty business, then called KKW Beauty, for $200 million in 2021, implying that the brand was valued at $1 billion at the time.
During an interview with WWD last week, Coty’s chief executive officer Sue Nabi said she did not comment on speculation amid the Kardashian press reports.
She did note, though, that the pricey direct-to-consumer skin care line, called Skkn by Kim, continues to perform well, while Kylie Cosmetics is growing by double digits.
Coty, which is developing a makeup line with Marc Jacobs, reported net revenue of $1.4 billion in its fourth quarter ended June 30, up 16 percent year-over-year. The prestige segment led during the quarter, with both reported and like-for-like sales growth of 21 percent versus the prior year.