March 21 (Reuters) - CoverGirl parent Coty ( COTY ) said

on Friday it would sell its 20% stake in reality TV star Kim

Kardashian's beauty brand to her clothing line, SKIMS,

consolidating the two businesses under a single brand.

Coty ( COTY ), which acquired a stake in Kardashian's beauty

business, SKKN, in 2021, said it would use the proceeds from the

sale to reduce debt and invest in innovations across its broader

brand portfolio.

The New York-based lipstick maker has been struggling to

lift sales, owing to muted spending from cost-conscious

consumers amid rising inflationary woes.

Last month, Coty ( COTY ) cut its annual profit forecast and posted a

surprise drop in quarterly revenue, joining its larger peer

Estee Lauder ( EL ) in taking a hit on sales from weakness in

Asia travel retail business.

Anna von Bayern, CEO of Kylie Cosmetics and leader of Kim

Kardashian's beauty business at Coty ( COTY ) also said the company would

continue to work with Kylie Cosmetics brand.

In 2023, Kim Kardashian was said to be in talks with Coty ( COTY ) to

buy back a minority stake in her beauty firm as part of an

effort to expand SKKN's beauty categories.

Coty ( COTY ) did not provide the purchasing price of the stake and

did not immediately respond to Reuters request for comment.