(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.