Forbes magazine, which in March 2019 last year declared reality TV star Kylie Jenner the world’s youngest self-made billionaire, revised its assessment. At the same time, the publication accused the Jenner family of overstating the cost of its cosmetics business.
As the magazine reported, it no longer believes that its capital was so significant.
The magazine came to this conclusion by examining financial data published by Coty Inc. This company last November acquired a controlling stake in Kylie Cosmetics for $ 600 million. On Friday, after the publication of Forbes, Coty shares fell by 13%, Bloomberg Agency notes.
These documents show that the 22-year-old Jenner’s business is “significantly smaller and less profitable than the family has spent over the years trying to make the cosmetics industry and media, including Forbes, believe it,” Forbes ironically says.
Now the magazine estimates her fortune at about $ 900 million.
Jenner responded to the post on Twitter, saying it was based on “several inaccurate statements and unproven assumptions.” “I thought it was a reputable site,” she wrote.
Kylie Jenner was born in August 1997. She is the half-sister of Kim, Khloe, and Kourtney Kardashian. A member of the reality show “The Kardashian Family” since 2007, in 2016 debuted with Kylie Cosmetics, releasing a set of lipstick for $ 29, writes Reuters.
“I never asked for titles or tried to lie for it,” Jenner said Friday.
In the Forbes global ranking, the 22-year-old model’s fortune was estimated at $ 1 billion. New data suggests that the state of Jenner is slightly less than 900 million dollars, more than a third of this amount Jenner received from the deal with Coty Inc. after taxes, writes Forbes.
The rest is a revised estimate of her remaining stake in Kylie Cosmetics. When evaluating its value, the publication took into account that Kylie Cosmetics brings in less revenue than Jenner claimed before the deal.
The deal with Coty Inc. was supposed to erase any doubt that Jenner is not a billionaire. Still, after the agreement, the company disclosed the financial performance of Kylie Cosmetics, and it turned out that revenue from the brand in the 12 months before the sale was only $ 177 million.
Given that Coty reported an increase of 40% compared to 2018, in 2018, Jenner’s business earned only $ 125 million. However, documents provided to her reporters said that in 2016, the brand received more than $ 300 million, writes Forbes.
Jenner has been “hyping the scale and success of her business” for years, according to the publication. Also, the revaluation took into account that, like other cosmetics companies, the brand suffered from the coronavirus pandemic and falling sales.