Kylie Jenner Sells 51% of Kylie Cosmetics to Coty, Making Her the Richest Kardashian

Kylie Jenner, who recently unseated Mark Zuckerberg as the world’s youngest billionaire, is selling 51% of her stake in Kylie Cosmetics to Coty Inc. for $600 million.

"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 said.

The young mogul’s team will continue to manage her creative and communication efforts, a critical component of the deal because Jenner is one of the most-followed people on social media. Jenner delivers an audience of 150 million followers on Instagram and 30 million on Twitter.

“On social media, Kylie has over 270 million followers,” Coty Chief Financial Officer Pierre Andre Terrise said in a conference call. . “To put this in perspective, with a single post, she’s able to reach more than double the number of people who watch the Super Bowl every year.”

With Coty suffering turbulent times in an industry reeling under the success of brands like Jenner’s, the deal benefits from Jenner being a stable, prime mover of beauty products. Coty launched a $3 billion write down in value of brands it acquired in 2015 from Procter & Gamble, that included Clairol and CoverGirl. The deal also establishes Coty with another player in the younger women, direct-to-consumer sales channel. For 22-year-old Jenner, the all cash deal is a brilliant business move.

Coty CEO Pierre Laubies said in the release that the deal 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."

We note that some Wall Street analysts expressed skepticism over the deal, while admitting that reliable brands like Estee Lauder, Loreal and Sephora are suffering, as the industry enters choppy waters. “Brands tied to a celebrity have a unique risk in that their popularity can ebb and flow with the popularity of the celebrity,” said Rebecca Scheuneman, an analyst with Morningstar. “That’s one risk we don’t care for with the deal.”

Kardashian-Jenner Women Launch Kardashian Kloset Resale on Friday, October 4

Kardashian-Jenners launch Kardashian Kloset resale platform.

Friday morning, 9am PST, doors will open to Kardashian Kloset, a new luxury resale venture initially populated with items belonging to Kris Jenner, Kim Kardashian West and Kylie Jenner, writes Vogue Business. Handbags, shoes, sunglasses, costume jewelery and pre-loved clothing from Khloe Kardashian, Kourtney Kardashian and Kendall Jenner will follow in weekly drops.

In the US, resale is booming. The country’s total secondhand market, which includes resale, thrift and donations, is forecast to increase from $24 billion in 2018 to $51 billion in 2023. According to the 2019 Fashion Resale Report by Thredup, the US resale market has grown 21 times faster than traditional retail apparel in the last three years.

Vogue Business writes that while resale is a growing segment of sustainable consumption, in America it more often allows access to luxury items unaffordable at the original price. This dynamic is poised to change, however, as more women embrace resale as a core option of responsible consumption.

According to Marc Beckman, founding partner and CEO of advertising and representation agency DMA United, the resale market will also benefit from celebrity endorsements. “Influential celebrities can instantly eliminate the stigma attached to the secondary market,” he writes via email. “The Kardashian’s participation, if executed properly, will certainly accelerate acceptance and sales of previously owned and used merchandise.”

Kylie Jenner and Travis Scott Lensed by Sasha Samsonova for PLAYBOY 'The Pleasure Issue'

Kylie Jenner and Travis Scott Lensed by Sasha Samsonova for PLAYBOY 'The Pleasure Issue'

Recently crowned by Forbes as the youngest self-made billionaire — taking the crown from Mark Zuckerberg — Kylie Jenner smolders in ‘Wild in Love’: Kylie by Travis for the new issue of PLAYBOY Magazine. Photographer Sasha Samsonova is behind the lens for ‘The Pleasure Issue’ Fall 2019.

Travis Scott comes through this interview every bit as cool as Kylie. A major talent in his own right, Scott plays second fiddle to his woman — except the result is a well-balanced duet. I’m not sure Scott wants to be perceived as charming (such an old-school word) but he is just that, checking his own ego at the front door and getting down to the business of dishing on Kylie.

Let’s hope this sexy couple and Stormi’s parents make sweet music for years to come.

Kylie Jenner Unseats Mark Zuckerberg As Forbes Youngest Self-Made Billionaire

Reality TV ‘Keeping Up With The Kardashians’ star turned makeup mogul Kylie Jenner has unseated Facebook founder Mark Zuckerberg as Forbes Youngest Self-Made Billionaire. Her three-year-old makeup brand ‘Kylie Cosmetics’, solely owned by Jenner, is now valued at $900 million.

The expansion of ‘Kylie Cosmetics’ to a new partnership with Ulta Beauty ‘s 1000-plus stores reportedly generated $54.5 million in six weeks, making it one of the fastest-growing cosmetic brands in the world.  Kylie Cosmetics launched in 2015 with the Lip Kit and now includes 30 products including highlighters, setting powders, blushes and makeup brushes. The launch at Ulta in physical locations in all 50 states was considered a blockbuster, with inventories wiped out in hours.

“It’s the power of social media,” Jenner says. “I had such a strong reach before I was able to start anything.” Forbes writes: “Ulta and Jenner are a sensible pairing. With Ulta’s mix of pricier prestige brands, like MAC Cosmetics, and cheaper selections, such as Nyx Professional Makeup, it has a larger footprint than that of its closest competitor, the more expensive Sephora. “

Kylie, the youngest of the ubiquitous Kardashian-Jenner sisters at age 21, dethrones Mark Zuckerberg who achieved the youngest self-made billionaire at age 23. In addition to her 175 million followers on social media, Kylie Jenner has a one year old daughter Stormi with rapper and boyfriend Travis Scott.

Kylie Talks Business & Babies With Kim, Lensed By Nagai Sakai For ES Magazine

Not many young women can be 'insecure' about their lips and start a cosmetics brand to fix the problem. The 'Keeping Up with the Kardashians' women are problem-solvers, making action into their own hands and not waiting for some Prince Charming to come along with a magic wand to make Kylie Jenner, 20, suddenly confident about her lips. With no scientific data, lip abundance is associated with fertility; and we all know that the Kardashian women are not only destiny-driven business moguls but direct descendants of the Venus of Willendorf. 

Kylie Jenner talks her personal truth in an interview with sister Kim Kardashian West for ES Magazine's Beauty edition. Kylie is captured by Nagi Sakai, with styling by Anna Trevelyan. / Hair by Andrew Fitz Simons; makeup by Ariel

“It came from an insecurity and I turned it into something. I was insecure about my lips, and lipstick is what helped me feel confident,” Jenner explained to her beauty mogul sister. 

“It’s the most authentic thing I’ve done in my career, and it really relates to me, and I feel like people can tell that I’m super passionate about it,” Jenner said about her business endeavor. “I feel like people could see that it’s authentic to me, and it was organic, and it just worked!”

People love to mock the Kardashian women, but Forbes estimated Kylie's net worth at $41m in December 2017, while WWD estimated her 2017 lip-love and more sales from Kylie Cosmetics at $330m.

Earlier this year, Kylie gave birth to her first child, Stormi, with long-term boyfriend and rapper, Travis Scott. The rest of Kylie's interview with sister Kim is about the Kardashian women and their babies. 

Kylie Jenner Smolders In Mike Rosenthal Images For GQ Germany August 2017

Kylie Jenner Smolders In Mike Rosenthal Images For GQ Germany August 2017

Kylie Jenner covers the August 2017 issue of GQ Germany, lensed by Mike Rosenthal. 

Kylie Jenner Is Fetish Sex Robot In Steven Klein Images For Interview Magazine December 2015

Kylie Jenner Is Fetish Sex Robot In Steven Klein Images For Interview Magazine December 2015