November 19, 2019
Kylie Jenner will continue to give “lip service” to her line of lip kits, makeup, and skincare essentials—however veteran beauty brand Coty announced on November 18 that it will pay $600 million for a controlling stake in Kylie Cosmetics—wagering that the reality star’s brand can revive a tanking beauty business based on CoverGirl, MaxFactor, and Rimmel.
According to a report by The Wall Street Journal, the fragrance and cosmetics company plans to buy 51% of Kylie Cosmetics, valuing it at $1.2 billion. Jenner, the youngest of the five Kardashian-Jenner sisters, founded the brand in 2015. She will remain the public face of the brand.
Known for nude lip liners and lipsticks, Kylie Cosmetics this spring added a skincare line.The retailer, Ulta Beauty, last year started carrying the makeup at its more than 1,100 stores nationwide.
Kylie Cosmetics is on track for roughly $200 million in sales this year, Coty said. It is part of a wave of fledgling cosmetics lines–including Glossier and Fenty—that are capitalizing on celebrity founders and social media-driven marketing.
“This is where the growth of the market is,” Coty Finance Chief Pierre-André Terisse said in an interview with The Wall Street Journal. The brand is attractive both for its skincare business and online presence, he said.
Research contact: @WSJ