Forbes recently published an article saying that Kylie Jenner lied blatantly about the company's business situation, he...
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Forbes recently published an article saying that Kylie Jenner lied blatantly about the company's business situation, her income to get her way to billionaire status.
For more than a decade living with fame, the Kardashian-Jenner family is often known for causing the media headaches. However, when it comes to wealth, everyone is attracted to this family. The Kardashian-Jenner sisters have always been the focus of media, or even books.
The most mentioned name is the youngest of the family, Kylie Jenner - who was named the youngest self-made billionaire in the United States. Kylie sold a 51% stake in Kylie Cosmetics to beauty firm Coty with a $ 1.2 billion deal in January and this was a major turning point for the family. The figure is one of the most famous cash transactions ever made, which seems to have strengthened Kylie's billionaire status.
However, records of this deal revealed an "offended" truth. Documents released by Coty in the past six months revealed one of the Kardashian-Jenner family's best kept secrets: Kylie's business is significantly smaller, lower sales than what the media sees and praises.
Basing on the information, along with the impact of COVID-19 on the movements of beauty industry stocks and consumer spending, Forbes said that Kylie Jenner is not a billionaire.
At the end of 2016, Kylie Jenner launched many new products under the Kylie Cosmetics brand and became famous in the beauty industry. In the first 18 months, the young girl's company recorded $400 million in revenue, and Kylie's after-tax profit of $250 million.
To prove that money, the family made the book publicly available. At a meeting at Kylie's mom's home, Ms. Kris Jenner, they announced $307 million in revenue and Kylie's personal profit of over $110 million in 2016. This helped Kylie reach 2nd place in the 100 richest female artist list. However, although these documents are signed by Kylie Jenner, Kylie Cosmetics' sales growth of 300 million USD in just one year is unbelievable.
After discussing with a number of analysts and experts who also found the numbers the Jenner family claimed to be absurd, the Forbes team of journalists made a more plausible estimate: total Kylie's profit is only 41 million USD, which is ranked 59th in Forbes' list of 100 richest female artists of 2017.
Two months later, an article posted on WWD - a famous information site in the fashion industry, used exactly the number that Kylie provided to Forbes. The article said: "There have been rumors about her business size, they predict sales ranging from $50 million to $300 million. Bad news for famous beauty companies, which is the company's revenue that Kylie owns a lot higher than them, retail sales of $420 million in just 18 months, Kris Jenner revealed. "
However, all doubts about Kylie's status as a billionaire were abolished in November 2019 when Coty announced he would buy a 51% stake in Kylie Cosmetics for $600 million, and value the company at 1.2 billion USD. The deal gave Kylie a great opportunity to grow, and a large amount of cash, along with clear evidence of her status as a billionaire.
Forbes argues, if the company's revenue was $125 million in 2018, how could they make $307 million in 2016 (like their tax returns) or $330 million in 2017?
Forbes said the actual figures had been disclosed by the family since 2016, including forging tax documents, to help increase the number in Forbes' estimates. In addition, Forbes estimates that the company's net profit has fallen by 44%. However, Coty's records show that Kylie's net profit is much lower, at only about 25%.
Accordingly, Forbes has recalculated the net worth of Kylie and concluded that she is not a billionaire and currently only holds assets worth less than $900 million, even after "pocketing" 340 million USD after the deal with Coty.
