Technically the world's youngest self-made billionaire at the tender age of 22, Kylie Jenner owns a beauty empire worth billions thanks to her irresistible 'Kylie lip kits'. And now it appears she's cashing in some of her chips.
According to WSJ, Jenner is selling a $600 million stake in her beauty empire to struggling cosmetics giant Coty Inc. The fragrance and cosmetics company said it plans to buy 51% of Kylie Cosmetics, valuing the company at $1.2 billion. Jenner, who founded the brand in 2015, will remain the public face of the brand, which will be renamed Kylie Beauty.
Kylie's company added a skin line this summer, and last year struck a deal with Ulta Beauty to carry Jenner's products in all of its 1,100 stores. The brand is on track for $200 million in sales for this year.
Per WSJ, Jenner is part of a "wave of fledgling cosmetics lines capitalizing on celebrity founders and social media-driven marketing." While sales of mass market brands like CoverGirl flounder, it's these upstart brands that are stealing market share, led by brands like Kylie Cosmetics and Glossier, a skin-care and makeup company launched by a popular fashion blogger.
"This is where the growth of the market is," Coty finance chief Pierre-André Terisse said in an interview, adding that the brand's online presence is another attractive element.
With all of this new capital, it appears Kylie Beauty is poised for even more rapid growth. Coty, which bought up a number of beauty brands from Proctor & Gamble a few years back, is reportedly hoping to sell some more underperforming brands as it shifts to more of a 'fast-fashion' approach.