You’re doing amazing, sweetie…but not that amazing.
Kylie Jenner is not a billionaire, according to Forbes Magazine which previously named the reality star turn cosmetics guru, the youngest self-made billionaire ever. But, in a scathing report today, Forbes said much of it was a “web of lies”.
Forbes said filings by Coty Inc, which paid US$1.2 billion for a 51 per cent stake in the Kylie Cosmetics in January 2020, suggest the company is significantly smaller, and less profitable, that the family led it to believe.
Forbes wrote that Kris Jenner, ‘momager’ to the Kardashian-Jenner clan, and the family’s publicists said revenues for the company’s first 18 months of operations were US$400 million, with Kylie receiving US$250 million of that amount.
However, even after providing ‘proof’, the magazine reserved doubts about the success of the youngest Jenner’s company, which started in November 2015 with 15,000 kits, containing a lip liner and matching lipstick, at US$29 a pop. It eventually listed her earnings at US$41 million for that period.
In a call with analysts after the sale, Coty’s chief financial officer said the company made US$177 million in revenue over the past year, much lower than published estimates at the time. More questions arose when the CFO said those numbers represented 40 per cent growth over the previous over 2018.
Surmising that the business could not have shrunk so much, so quickly, Forbes concluded “the business was never that big to begin with”, and that the Jenners lied about revenue and drafted tax returns with false numbers.
With all that said, Kylie is still making bank with a revised fortune of just under US$900 million, says Forbes.
Forbes reached out to the family for comment, but they declined. However, Kylie had a lot to say but on Twitter. Check out her response below, Buzz fam.