Rihanna is Officially A Billionaire With Fenty’s Surge in Sales This Year
Rihanna is currently worth $1.7 billion, making her the world’s wealthiest female musician and the second most decadent female entertainment personality besides Oprah Winfrey. But it isn’t her music that has made her so prosperous. The value of Fenty Beauty, of which she now owns 50%, accounts for the majority of her riches (an estimated $1.4 billion). Her investment in Savage x Fenty, worth an estimated $270 million, and her profits from her career as a chart-topping musician and actress account for the majority of the rest.
While Rihanna, born in Barbados, isn’t the first celebrity to use her social media following to launch a beauty company (she has 103 million Instagram followers and 102.5 million on Twitter), she is the most successful. Fenty Beauty, a 50-50 joint venture with LVMH (owned by Bernard Arnault, the world’s second-richest person), debuted in 2017 to be inclusive.
Its items are available in a variety of hues. The foundation comes in 50 tones, including harder-to-find deeper shades for women of color, and is modeled by a diverse group of people in its ads. The goods were an instant hit when made available online and in Sephora stores, which LVMH also owns.
According to LVMH, the line brought in more than $550 million in yearly revenue in its first full calendar year, outperforming rival celebrity-founded businesses including Kylie Jenner‘s Kylie Cosmetics, Kim Kardashian West’s KKW Beauty, and Jessica Alba‘s Honest Co.
While cosmetics sales slowed during the epidemic, the beauty industries are still worth a lot of money. Larger cosmetic conglomerates’ stocks, such as Estée Lauder and L’Oréal, have recovered, reaching all-time highs and selling at a whopping 7.5 (or more) times annual revenues. Meanwhile, independent brands like Beautycounter and Charlotte Tilbury signed billion-dollar deals with investment groups earlier this year.
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Fenty Beauty is valued at a conservative $2.8 billion due to the remarkable multiples beauty firms are trading. And all indications are that the business will expand further. Rihanna’s billion-dollar brand Fenty Beauty isn’t her only one. Savage x Fenty, her lingerie company, raised $115 million in investment in February at a $1 billion valuation.
Blue-chip investors, including Jay-Marcy Z‘s Venture Partners and private equity firm L. Catterton (in whom Bernard Arnault is an investor), are among the company’s shareholders, which began in 2018 as a joint venture with TechStyle Fashion Group. Rihanna owns a 30 percent share of the company. According to reports, the latest amount of investment would be utilized for client acquisition and store expansion.
In a statement to Forbes in February, LVMH and Rihanna revealed that their other endeavor, a high-end fashion, and accessories house called Fenty, had closed. Fenty was launched in 2019 to extend Rihanna’s inclusive brand and offer styles in a variety of sizes. Like many other luxury fashion firms, the high-priced line was hit hard by the pandemic and will release its final collection in November 2020.
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