Is Coty About to Repeat Its Mistakes With Kim Kardashian West?
Coty (NYSE: COTY) has already had a lot going on this week, after selling off a chunk of its Wella haircare business to KKR (NYSE: KKR) and undergoing a management overhaul. In a filing on Tuesday with the Securities and Exchange Commission, the once-powerful beauty brand said it was in talks with reality TV celebrity Kim Kardashian West to develop a cosmetic brand. Is that the right move for a company in turmoil?
Back in January, Coty completed a 51% purchase of Kyle Cosmetics -- which was founded by Kardashian West's sister, Kylie Jenner -- for $600 million. This was a move to refresh the company's cosmetics offerings, which have been going a bit stale as consumers move toward luxury and trendy brands. However Forbes disclosed last week that the value of Kylie cosmetics may have been inflated. The news sent Coty's stock price down.
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