Kylie Jenner sold the majority stake of her Kylie Cosmetics company to Coty Inc. for a reported $600 million earlier this month, making the new owners in charge of marketing, while Kylie remains the public face of the brand.
The purchase initially increased Coty’s shares up, but by the time trading closed this week, Coty stocks were down from $12.22 to $11.53. Following the initial increase, the shares continued to decrease to about 5.5% from the beginning of the week.
According to Complex, Coty was looking to recover after losing almost half of its value since 2016 and taken $4 billion in write-downs within the past year. Kylie Cosmetics is still on track to make $200 million this year.
Coty reportedly isn’t the only major beauty brand to take a recent hit. Ultra Beauty is another top cosmetic stock to take significant losses since Q2.
