Kylie Jenner Cosmetic Co. Crashes After She Sells Her Stake
In a report by TMZ, the beauty company that bought Kylie Jenner out of her majority stake is taking a huge hit on Wall Street.
Coty shares are plummeting in the wake of the world’s youngest billionaire’s decision to sell her 51 percent stake in Kylie Cosmetics to the conglomerate. After trading closed this week, Coty stocks were down significantly to $11.53, the lowest they’ve been in a month.
After a brief initial surge, the share price kept trending down, finishing each day this week at a lower figure. Overall, Coty stock is down roughly 5.5 percent since Kylie cashed out.
Many analysts expected a surge after Coty snapped up Kylie but they were wrong. Shareholders might be hurting, but Kylie’s another $600 mil in the black.
Formerly known as Kylie Lip Kits, the company was renamed Kylie Cosmetics in 2016 after the release of the liquid lipstick and lip liner set on November 30, 2015.
In 2018, Forbes reported the company was valued at $800 million. In March 2019, Kylie Cosmetics was valued at $900 million. On November 18, 2019, Coty, Inc. bought a 51% controlling stake in the company for $600 million.
In the first 18 months, the company generated $420 million in revenue. Kylie Cosmetics maintains its reputation as an individually funded and self-run company.
Kris Jenner has suggested that attaching to a bigger brand like Estee Lauder would be beneficial for the future of the company.