American multinational beauty company Coty witnesses a new month low in stocks after purchasing Kylie Jenner’s beauty line Kylie Cosmetics.

Valued a nearly $1.2 billion corporation, Coty Inc. purchased 51% of Jenner’s namesake cosmetics line she established in 2015 for $600 million earlier this month, in hopes of reviving the company through Kylie’s profitable brand. After an initial rise, the shares trickled down by 5.5%, resulting in the lowest they have been in a monthly period, in other words, Friday saw Coty cash out at $11.53 (after topping the charts with $12.22 right after the purchase), bewildering analysts who expected that the investment of the majority stake in Kylie Cosmetics would result in a drastic surge in shares.

According to The Wall Street Journal, Coty has lost half its value since 2016. That shouldn’t concern this beauty giant only, as three out of the top four major beauty brands experience significant losses this week, including The Estée Lauder Companies Inc, Inter Parfums, Inc, and Nu Skin Enterprises, Inc.

Posted by:Staff

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