Kylie Jenner Sells $600 Million Stake In Kylie Cosmetics
Kylie Jenner sells for $600 million – she stunned fans and the business world alike on Monday when news broke that she sold off a $600 million majority stake in her brand, Kylie Cosmetics.
Degree options in cosmetology
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The Wall Street Journal first reported that Coty Inc. is paying the absurd sum for the controlling stake of the kylie, the founder’s beauty business, giving, Coty Inc, the fragrance and cosmetics company a 51% controlling stake in Kylie Cosmetics.
The deal will keep Kylie on as the face of the brand and values Kylie Cosmetics at about $1.2 billion dollars!
Kylie Jenner founded the cosmetics business, originally named Kylie Lip Kits, in 2015 when she was just 18 years old. In its first 18 months, the company (later renamed Kylie Cosmetics) generated $420 million in revenue as legacy beauty brands struggled to keep up sales. The company was named the fastest-growing company since Groupon! In November 2018, Ulta started carrying Kylie’s products in its 1,100 stores, which had a massive positive impact on the brand’s bottom line.
WSJ reports that in the Coty deal, Kylie Cosmetics will be renamed to Kylie Beauty (the company now encompasses a wide range of beauty and skincare products, and will possibly expand into many more verticles.
Upon news breaking about Kylie’s unexpected business deal, fans on Twitter called it a “brilliant move” and “super smart,” while other social media users wondered why she was making such a move.
One user provided a likely theory behind the move: “Reason for sale, to allow her to focus on creative direction while the acquiring company, Coty Ltd handles the scaling. (good move)
Part of what has fueled Jenner’s sales, especially in the beginning, were unannounced drops of new product on the brand’s website, as well as frequent collaboration collections with her famous sisters Kim, Kourtney and Khloe Kardashian.
In the wake of Kylie Jenner’s industry-rocking brand launch in 2015, many other stars have followed suit with their own namesake beauty brands: Kim Kardashian has KKW Beauty, Lady Gaga has Haus Labs, Rihanna has Fenty Beauty and “Stranger Things” actress Millie Bobby Brown has Florence, among others.