Kardashian Parts Ways with Coty as Her Beauty Brand Is Acquired by Skims
After months of speculation, Kim Kardashian and Coty Inc. have decided to part ways. Skims, Kardashian’s shapewear and apparel company, has acquired Skkn by Kim from both Kardashian and Coty. This move comes after Coty purchased a 20% stake in KKW Beauty for $200 million in 2021, a stake that will now transfer to Skims along with Kardashian’s 80%.
Coty plans to utilize the proceeds from this sale to advance its strategy of reducing debt and to invest in innovations across its broader brand portfolio. Anna von Bayern, who oversees Kim Kardashian’s beauty business at Coty, expressed gratitude towards Kardashian for the partnership and emphasized Coty’s ongoing commitment to Kylie Cosmetics, where they have seen significant growth and hold the majority stake.
The specifics of the acquisition deal, which facilitates Skims’ expansion into beauty, skincare, and fragrance by 2026, were not disclosed. Kim Kardashian, now Chief Creative Officer and co-founder of Skims, stated, “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. Uniting everything under the Skims brand streamlines that vision.”
Jens Grede, CEO and co-founder of Skims, highlighted the strategic nature of this acquisition, emphasizing the strength of the Skims brand and its capability to authoritatively enter a new market segment.
Skims recently achieved a valuation of $4 billion in 2023 after raising $270 million in a Series C funding round. Kardashian remains the largest single shareholder, and she and Grede continue to hold a majority stake. There is ongoing speculation about a potential initial public offering for Skims.
Kardashian launched KKW Beauty in 2017 and KKW Fragrance, both of which were shuttered in 2022. She planned to reintroduce the brands with new, more modern, and sustainable formulas. Coty assisted in expanding Kardashian’s brand into skincare with Skkn by Kim in 2022, featuring a comprehensive nine-step skincare system. Additionally, Skkn by Kim ventured back into color cosmetics with a new line launched in January 2024.
Coty, which also holds a 51% stake in Kylie Jenner’s Kylie Cosmetics, bought for $600 million, appears committed to continuing this partnership, which includes a perpetual license. This strategy aligns with Coty’s focus on bolstering its direct-to-consumer business, which has been pivotal in its corporate strategy under CEO Sue Nabi.
Despite some positive impacts from the fragrance division, Coty reported a 3% decline in net revenue to $1.66 billion for the fiscal second quarter ending December 31, falling short of the expected $1.71 billion. On a like-for-like basis, sales decreased by 1%, affected by weak demand in Asia, foreign exchange headwinds, and a slowdown in the mass market.
