Luxury conglomerate LVMH, the powerhouse behind esteemed brands such as Louis Vuitton, Dior, Celine, Kenzo, and Sephora, is reportedly exploring the divestment of a 50 percent stake in Fenty Beauty, the highly successful beauty enterprise founded by superstar Rihanna.
According to a Reuters report on Wednesday, October 22, LVMH has enlisted the expertise of investment bank Evercore to facilitate this potential share sale. However, sources close to Reuters indicated that the ongoing process remains highly confidential.
Fenty Beauty was initially launched in 2017 by Robyn Rihanna Fenty, the global icon herself, with strategic support from Kendo Brands, LVMH’s dedicated beauty incubator. Reuters sources confirm that the current ownership structure sees both LVMH and Rihanna holding an equal 50 percent stake in the thriving beauty brand.
Neither LVMH nor Evercore has provided official comments regarding these developments. Similarly, representatives for Fenty Beauty and Rihanna have not yet responded to inquiries.
Projections for 2024 estimate Fenty Beauty’s net sales to reach an impressive USD 450 million, equivalent to approximately IDR 7.47 trillion (at an exchange rate of IDR 16,616 per US dollar). Intriguingly, some sources suggest that the beauty brand’s sales soared even higher last year, potentially reaching between USD 1-2 billion.
Rihanna initially founded Fenty Beauty with a clear mission: to create a comprehensive makeup line catering to a vastly broader spectrum of women’s skin tones and types, specifically championing inclusivity for Black, Hispanic, and Asian women. The brand’s diverse product portfolio, encompassing makeup, skincare, haircare, and fragrances, is widely available through major retailers like Sephora and Amazon.
Summary
Luxury conglomerate LVMH is reportedly exploring the divestment of a 50 percent stake in Fenty Beauty, the successful brand co-founded with superstar Rihanna. Investment bank Evercore has been enlisted to facilitate this potential share sale, although the process remains confidential. Fenty Beauty was launched in 2017 with strategic support from LVMH’s Kendo Brands, and both LVMH and Rihanna currently hold equal 50 percent ownership stakes.
Neither LVMH, Evercore, nor representatives for Fenty Beauty or Rihanna have provided official comments regarding these developments. Fenty Beauty’s net sales are projected to reach USD 450 million in 2024, with some sources suggesting sales were as high as USD 1-2 billion last year. The brand was founded with a mission to champion inclusivity by catering to a broad spectrum of women’s skin tones and types.