Coty Reports $71.1 Million Loss From Skkn by Kim Divestiture as Q3 Revenue Falls

On May 6, U.S. beauty giant Coty Inc. announced its financial results for the third quarter of fiscal year 2025 (January to March 2025). The company reported a net loss of $409 million and revenue of $1.299 billion, down 6% year-over-year and slightly below analyst expectations of $1.3 billion.

A notable factor in the quarterly loss was the $71.1 million impairment related to Coty’s divestiture of its 20% stake in Skkn by Kim, the beauty brand founded by Kim Kardashian. Coty had invested $200 million in Kardashian’s beauty business in 2022, leading to the launch of the premium nine-step skincare brand Skkn by Kim. In March 2025, Kardashian regained full ownership of the brand, resulting in the reported loss.

Both of Coty’s core segments saw a decline in performance. Prestige revenue fell by 4%, while Consumer Beauty dropped by 9%. Even the previously strong-performing prestige fragrance category experienced a slowdown, with only moderate growth reported for the quarter.

Geographically, revenues fell across all regions: 10% in the Americas, 3% in EMEA (Europe, the Middle East, and Africa), and 5% in Asia-Pacific.

Chief Executive Officer Sue Nabi commented during the earnings release, saying,
“While we are not satisfied with our net revenue performance, Coty’s strong fundamentals, coupled with our multi-pronged attack-plan for accelerating innovation, distribution and efficiencies, gives us confidence for the years ahead.”

Coty also announced the next phase of its structural reform program, All-in to Win, originally launched during the pandemic. The company plans to restructure its organization, including cutting up to 700 jobs, to boost operational efficiency and reduce costs. The initiative is expected to generate approximately $130 million in annual fixed cost savings and enhance the company’s ability to reinvest in its brands.

Explaining the rationale behind this transition, Nabi stated: “When we first announced our All-in to Win program in FY20, at the peak of COVID-19 disruptions, our goal was to boost our margin profile and brand reinvestment firepower through a significantly lower fixed cost structure, supply chain simplification, procurement savings and strategic revenue management initiatives. With the cyclical and structural changes in the beauty industry and the global economy in recent years, including the rapid acceleration of e-commerce, the consolidation of retail channels and customers, and the new ways of consumer brand discovery, Coty must once again adapt and evolve.”

Under the new organizational model, Coty aims to simplify operations in key markets, streamline back-office functions, strengthen its innovation capabilities, and reduce non-people-related fixed costs across all business areas.