Luxury goods company Coty (COTY) - Get Coty Inc. Class A Report—which owns brands such as Dolce & Gabbana, Gucci, Calvin Klein, Marc Jacobs, and more—is seeing its shares surge on a possible collaboration with fashion icon and entrepreneur Kim Kardashian West.
The company announced it is "currently engaged in discussions with Kim Kardashian West regarding a possible collaboration with respect to certain beauty products," in a Securities and Exchange Commission filing on June 2.
However, it hasn't released more details. "There can be no assurance that an agreement for such a collaboration will be reached or as to the terms of any such agreement. The Company does not intend to comment further on such a potential transaction unless and until it otherwise deems further disclosure is appropriate or required," said Coty in the filing.
Kardashian West owns makeup line KKW Beauty, which Forbes recently valued at about $100 million. KKW Beauty makeup can be bought online or at all Ulta Beauty (ULTA) - Get Ulta Beauty Inc Report stores, as part of a deal with Ulta formed in 2019.
Kardashian West's younger sister, Kylie Jenner, also has a beauty brand. In 2019, Jenner sold 51% of her cosmetics company to Coty for around $600 million.
Despite the shares surge, Coty’s stock is still down about 58% year-to-date. It has been hit hard by the coronavirus pandemic which has caused stores to shutter around the United States and world.
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