Kylie Jenner becomes a bona fide billionaire at the tender age of 22: Reality TV star cashes in 51% stake in beauty company for $600million and STILL owns the other 49%
- Kylie Jenner has sold a 51 percent stake in her cosmetics brand to beauty product giant Coty Inc
- Coty announced on Monday it was buying the stake in her company for $600 million as it looks to tap into the reality TV star’s huge social media reach
- The company will now have overall responsibility for Jenner’s brand, while the TV star will continue to lead creative efforts and communications
- Coty’s brands include Hugo Boss and Burberry fragrances, as well as Covergirl, Rimmel and Max Factor
- The company, which has been struggling with falling sales, saw a share increase of 5 percent following the Jenner announcement
Kylie Jenner is selling a $600 million majority stake in her cosmetics brand to beauty product giant Coty Inc
Billionaire Kylie Jenner has just become even richer after selling the majority stake in her cosmetics brand for $600 million to beauty product giant Coty Inc.
Coty announced on Monday it was buying a 51 percent stake in Jenner’s $900 million make-up and skincare empire.
The 22-year-old reality-star-turned-beauty-mogul still solely owns the other 49 percent stake.
She was named the world’s youngest self-made billionaire of all time by Forbes earlier this year with an estimated net worth of $1 billion.
Jenner, who is the youngest and richest of the Kardashian-Jenner family, started her make up line in 2015 by selling $29 lipstick kits.
The kits sold out within minutes of launching – an early sign of the power of her now 270 million-plus social media following.
Jenner’s products were only sold online when it was first launched but last year the brand struck a deal to sell its goods in 1,100 Ulta Beauty stores across the U.S.
She expanded her empire earlier this year with Kylie Skin – a line of moisturizers, under eye creams and facial scrubs.
Jenner brought in sales of an estimated $360 million last year, according to Forbes.
The company, which has been struggling with falling sales, saw a share increase of 5 percent following the Jenner announcement
Jenner, the youngest sibling of the Kardashian family, started her make up line with lipstick kits in 2015. Kylie Cosmetics last year signed a deal with Ulta Beauty Inc to put her products in all of the retailer’s 1,163 U.S. stores (above)
WHAT ARE THE OTHER KARDASHIAN-JENNERS WORTH?
Kim Kardashian-West: $370million
Caitlyn Jenner: $100million
Kris Jenner: $90million
Khloe Kardashian: $40million
Kourtney Kardashian: $35million
Kendall Jenner: $30million
Her billionaire title – and subsequent Forbes cover story – prompted outrage at the time with some critics arguing she wasn’t self-made because she was born into wealth and fame.
In response, Jenner admitted that she’d had ‘a lot of help’ on her way’ but denied inheriting any money that contributed to her cosmetic fortune.
She credited much of her success to the power of social media and told Forbes: “I had such a strong reach before I was able to start anything.’
As of last year, Jenner employed just seven full-time and five part-time employees at her cosmetics company. Her mother Kris – like with all of her children- handles her daughter’s finance’s and public relations for a 10 per cent fee.
Jenner has, until now, outsourced production and sales for her company. She has very little marketing costs due to her own social media pushes.
While Coty will now have overall responsibility for Jenner’s brand owning the majority stake, Jenner and her team say they will continue to lead creative efforts and communications.
The move comes as the cosmetics maker – whose brands include Hugo Boss and Burberry fragrances, as well as Covergirl, Rimmel and Max Factor – doubles down on its skin care and fragrance products.
Coty has been rolling out new luxury fragrances and lipsticks while spending more on marketing to combat falling sales. They are looking to tap into the reality TV star’s huge social media reach.
The announcement drove shares in the company up 5 percent.
Coty said Kylie Cosmetics has had an estimated $177 million in net revenues over the past 12 months.
The deal with Coty is expected to close in the third quarter of fiscal year 2020, according to the company.
Coty’s brands include Hugo Boss and Burberry fragrances, as well as Covergirl, Rimmel and Max Factor. The company, which has been struggling with falling sales, saw a share increase of 5 percent following the Jenner announcement
Coty announced on Monday it was buying a 51 percent stake in Kylie Jenner’s brand
Coty said the new partnership will increase its net revenue growth of its core fragrance, cosmetics and skin care business by more than 1 percent per year over the next three years.
‘We are pleased to welcome Kylie into our organization and family,’ Pierre Laubies, Coty CEO, said.
‘Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential.’
In a statement, Jenner said: ‘I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world.
‘I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media.
‘This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.’
Jenner, the youngest sibling of the Kardashian family, started her make up line with lipstick kits in 2015. She is pictured above with daughter Stormi who she shares with Travis Scott
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