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Kylie Jenner has reportedly held informal discussions with Coty (NYSE:COTY) about buying back the 51% Bloomberg in Kylie Cosmetics she sold to the beauty company for $600M in 2020.
Sources told Bloomberg that the development is a further indication of how the relationship between Coty (COTY) and the Kardashian family in general has become more strained. Half-sister Kim Kardashian is also in talks with Coty (COTY) to buy back the 20% stake in her SKKN by Kim skincare brand that was also purchased by Coty in 2020. Both Kylie Jenner and Kim Kardashian are said to be unhappy with the managing of their respective brands.
During Coty’s FQ4 earnings call (transcript), executives said Kylie Cosmetics makeup sales grew by a strong double-digit percentage globally for both the quarter and full fiscal year, fueled by an expanded distribution and new exciting launches.
In early trading on Thursday, Coty (COTY) poked out a 0.45% gain. Shares of Coty (COTY) have ripped a 32% year-to-date gain as the company has displayed strong organic sales growth and deleveraged its balance sheet. The Seeking Alpha Quant Rating on COTY is still flashing Buy, with strong factor grades for momentum and growth standing out.