November 24, 2019

Last week the world’s youngest billionaire, Kylie Jenner, sold 51% of her beauty business, Kylie Cosmetics to fragrance and cosmetics company Coty, Inc ("Coty").

The multinational cosmetics company adds Jenner’s brand to a line of iconic beauty brands ranging from Chole to Max Factor to Covergirl. Coty is in desperate need of a boost, having seen its stock drop more than 50% since its 2016 acquisition of the Clairol and CoverGirl brands from Procter & Gamble.

Shares of Coty dropped nearly 6% on news of the sale, amid concerns Jenner's sales were weaker than previous analysts' estimates. In March 2019, Forbes estimated Jenner’s 2018 sales at $360 million, but according to Coty, Kylie Cosmetics only realized an estimated $177M net revenues for the trailing twelve months. Coty also claimed Kylie Cosmetics was on track to achieve 40% growth over its 2018 performance.

In other beauty news, Estee Lauder announced its acquisition of Have & Be, Co. Ltd, a Korean-based cosmetics company, founded in 2004, by ChineWook Lee.

Based in Seoul, South Korea, Have & Be is the company behind Dr. Jart+ and Do The Right Thing. Estee Lauder made an initial investment in Have & Be in 2015, which paved the way for the company to acquire the remainder of the beloved K-beauty brand. K-Beauty refers to the amazing products imported from Korea and the increasing Korean influence on American skincare routines.

Asia is arguably the fastest growing region in the cosmetics and beauty world and Dr. Jart+ is one of the most recognizable brands in Korea's emerging K-beauty trend. Acquiring Have & Be gives Estee Lauder a solid presence in the region. Shares of Estee Lauder ("EL") are up nearly 50% year to date.