The whopping $600 million deal values Jenner’s business at roughly $1.2 billon — no small feat considering the reality star launched the line as a teenager back in 2015 — and hints at the industry’s shift toward celebrity branding and social media-savvy marketing.
In the past, the direct-to-consumer model has worked well for Jenner’s booming business, but sales have slipped as the industry continues to experience an overall slowdown amid a shift in consumer preferences.
Color cosmetics have taken an especially big hit with buyers opting for skincare products and natural tones rather than darker shades.
Kylie Cosmetics brought in an estimated $177 million in net revenue over the past twelve months — which means Coty’s $1.2 billion valuation is six times that.
So why pay the high price? Read more.