Coty Aims To Prove Naysayers Wrong With Another Kardashian Bet
Coty will leverage Kim Kardashian West’s influence with her roughly 300m social-media followers as it expands her KKW brand into new product categories and geographies, according to the firm’s 29 June announcement. The $200m transaction for 20% of the celeb’s business follows a $600m deal with half-sister Kylie Jenner, completed in January.
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Sue Nabi’s success at L’Oreal, where she headed the firm’s global L’Oreal Paris and Lancome businesses, her skin-care savvy as founder of the luxury, “clean, green and vegan” Orveda, and her experience as a career champion of diversity were major draws for Coty, where she begins as CEO on 1 September.
In its third-quarter earnings call, Coty leadership discussed promising “green shoots” and the firm’s highly focused strategic priorities in the shadow of the COVID-19 pandemic.
The beauty giant says it is selling its Professional Beauty and retail hair-care businesses to global investment firm KKR and targeting $700m in cost reductions over the next two and a half years. Coty already was in transformation mode prior to COVID-19, which drove a 23% decline in its third-quarter net sales, and it does not expect revenue levels to normalize anytime soon.