With help from Kim Kardashian and Kylie Jenner, Coty Inc. has big plans for its skincare category, which hasn’t always been a priority for the beauty giant, according to chief executive Sue Nabi.
“Previous management teams weren’t familiar with skincare,” Nabi told investors at an event Wednesday at Coty’s skincare R&D and manufacturing facility in Monaco. “They didn’t have the right tools to gauge the strength of Coty’s intellectual property in skincare, nor the playbook to win in this highly competitive category.”
But now Nabi, a former head of skincare at ultra luxury Orveda, which she co-founded, thinks the right team is in place to focus on growing the category. Nabi is so confident in fact that the company has released new targets to double its skincare sales to between $500 million and $600 million by fiscal year 2025 with even more gains to come in 2026.
“On the one hand, doubling sales in three years is ambitious and far from an easy task as we expand our global infrastructure, strengthen our innovation pipeline and transform our core brands,” added Nabi. “On the other hand, $500-600 million in total sales is only a fraction of the annual revenue of some of the world’s leading skincare brands, which shows that we want to be ambitious, but equally credible in the objectives that we have defined.”
The Estee Lauder Cos. Inc., for example, reported nearly $10 billion in skincare sales for its last fiscal year.
Coty’s strategy will be to integrate Skkn by Kim and Kylie Skin, already rooted in North America, into the EMEA region in the coming years. Kylie Skin will also be heading to Australia as part of the plan, but when an investor asked about Asia, Nabi’s response was that this region was not a priority for that particular brand.
Instead, the plan is to focus on pure Asian skincare players and also Lancaster, which is already in Asia and doing well, according to Nabi.
“We have so much to do with Kylie in the rest of the world. Kylie is clearly a brand that is doing very well in Anglo-Saxon countries. We launched it recently in Latin America, Mexico, Brazil. It has become one of the go-to makeup sellers in travel retail, especially in Europe, London or Paris, to take these two examples,” adds Nabi. “So honestly, we are 100% focused on using the strong brands in regions where they make sense.”
About Kardashian’s expensive Skkn launch earlier this year, Nabi previously told WWD that it performed above expectations and that one of the best-selling products was actually not a product, but the full line, which sells for $673.
Coty spent $800 million for a 20% stake in Kardashian’s business and a majority stake in Kylie Beauty.
Coty also took the opportunity to announce that it was raising its expectation for first-quarter like-for-like sales growth to 8-9% from the previous target of 6-8%, due to greater demand for beauty in both countries. prestige and consumer and across Europe, the Americas and global travel retail. This comes despite a backdrop of record inflation, recession fears and rising interest rates.