The rapid-fire reshuffling on the high of Kylie Jenner’s beauty firm continued this week with what seems to be the corporate’s fourth new chief in lower than two years.
Coty on Wednesday stated it’s tapped Andrew Stanleick — Coty’s government vice chairman of the Americas since 2017 — to move up Kylie Jenner Beauty Brands.
Stanleick will even oversee Coty’s 20 percent stake in big sister Kim Kardashian West’s beauty business, which Coty secured final yr for $200 million. The beauty firm behind CoverGirl and OPI manufacturers purchased a majority stake in Jenner’s model of make-up and skincare merchandise in 2019 for $600 million.
Wednesday’s transfer bumped Jenner’s mother, Kris Jenner, from the function of interim CEO of Kylie Cosmetic and Kylie Skin.
Coty says Jenner — whose household rose to fame with hit actuality TV present “Keeping Up with the Kardashians” — took on the function of interim CEO in April 2020.
That’s the place issues begin getting complicated.
In January 2020, Coty named Christoph Honnefelder, a former government with European specialty retailer Douglas, as CEO of Kylie Cosmetics. But Honnefelder by no means formally joined the corporate. And by June, Coty said it had tapped Simona Cattaneo, head of the sweetness firm’s luxurious manufacturers, to supervise Kylie Cosmetics’ world growth.
Cattaneo, who just lately introduced she can be stepping down from Coty after 5 years to pursue different pursuits, was given the expanded function following explosive studies claiming that the unit’s then 22-year-old founder had allegedly been mendacity about her sales in a determined try to be named a billionaire.
Jenner has denied the studies, however Coty was nonetheless slapped with shareholder lawsuits alleging that it overpaid for its 51 p.c stake within the magnificence enterprise, which was valued at $1.2 billion on the time.
Kylie Jenner has additionally been sued by California-based Seed Beauty LLC, the private-label producer that used to make and distribute Kylie Cosmetics merchandise. It has alleged that Jenner’s firm shared commerce secrets and techniques with Coty.
Without disclosing particulars, Coty has stated Kylie Cosmetics noticed sales of its lip kits and different make-up merchandise plummet in the course of the pandemic when shoppers have been hunkered down of their properties and hiding their mouths with face masks.
Cccording to DA Davidson analyst Linda Bolton Weiser, Coty has stated little or no about its explosive 2019 acquisition in latest earnings studies. The firm’s “failure to mention the brand as one that is growing” will solely lead traders to imagine its sales have been declining, she stated.
“Andrew is a very experienced and respected Coty leader who has demonstrated strong business development acumen, strategic rigor, and customer orientation,” Coty CEO Sue Nabi stated in an announcement. “This is a great opportunity for Andrew and Coty to fully leverage our global knowledge and capabilities in R&D, manufacturing, distribution, commercial and go-to-market expertise.”
Kris Jenner will stay carefully concerned within the enterprise, the corporate stated, main alongside along with her daughters “the strategic direction of both partnerships.”
The well-known household will even proceed to steer “all creative efforts” together with speaking concerning the merchandise on their huge social media networks.
“Andrew is a beauty industry veteran with a proven track record of expanding brands into global markets,” Kris Jenner stated in an announcement, “and we very much look forward to working closely with him to further accelerate the businesses.”
Stanleick, who will proceed in his function as EVP as nicely, stated in an announcement, “We have a clear plan in place to accelerate growth and ensure these businesses are able to continue to deliver outstanding products that are new, innovative and sustainable.”
The plan for Kylie’s enterprise, he stated features a direct to client web site “which will finally allow consumers to seamlessly shop the full assortment of her cosmetics and skincare products.”