Shares of Coty (NYSE:COTY) popped today, after the company announced its Kylie Skin products are now available in Europe. The stock closed 13% higher for the session, but had topped out at 17% higher earlier in the day.
The announcement boosted Coty’s valuation by a full $300 million, and shareholders will undoubtedly be thanking celebrity Kylie Jenner for that. The stock has been one of the hardest-hit on Wall Street, down over 70% in the past year.
Coty is a cosmetics company in transition. With revenue growth stalled and net income falling, the company is making big moves. It’s spinning off the Wella division of its business for $3 billion. It’s also trying to reduce fixed costs by $700 million by 2023. But the turnaround also includes acquiring a majority-ownership stake in Kylie Jenner’s company.
The November deal cost Coty $600 million, so it clearly figures heav