Kylie Jenner’s billionaire status revoked by Forbes magazine
Kylie Jenner’s billionaire status has been revoked by Forbes magazine due to certain irregularities uncovered.
Forbe’s believes Kylie inflated her earning and didn’t tell them the whole truth regarding how much her income and true worth were.
Remember Kylie Jenner unseated Mark Zuckerberg in 2019 to become world youngest ever self-made billionaire.
In a report titled “Inside Kylie Jenner’s Web of Lies — and Why She’s No Longer a Billionaire”, Forbes accused her of ‘lying about company figures and forging tax returns’ to reach the billionaire status.
The American business magazine which reviewed filings from Coty, the beauty giant which the mother of one sold 51 percent of her Kylie Cosmetics to in a deal valued at $1.2 billion in January 2020, found that Kylie’s beauty company “is significantly smaller, and less profitable than the family has spent years leading the cosmetics industry and media outlets to believe”.
After comparing the figures the Kardashian-Jenner family gave them with that of Coty’s acquisition.
Forbes further revealed that the number were questionable.
With this information and the impact of COVID-19 pandemic, Kylie’s net worth is now “just under $900 million.”
The report reads,
More than a third of that is the estimated $340 million in post-tax cash she would have pocketed from selling a majority of her company.
“The rest is made up of revised earnings based on her business’s smaller size and a more conservative estimate of its profitability, plus the value of her remaining share of Kylie Cosmetics—which is not only smaller than the Jenners led us to believe, but is also worth less now than it was when the deal was announced in November, given the economic effects of the coronavirus.
“Revenues over a 12-month period preceding the deal: $177million according to the Coty presentation, far lower than the published estimates at the time.
“More problematic, Coty said that sales were up 40% from 2018, meaning the business only generated about $125 million that year, nowhere near the $360 million the Jenners had led Forbes to believe.
“Kylie’s skincare line, which launched in May 2019, did $100 million in revenues in its first month and a half, Kylie’s reps told us. The filings show the line was actually “on track” to finish the year with just $25 million in sales.”
Stephanie Wissink, an equity analyst covering consumer products at Jefferies told Forbes;
“It’s fair to say that everything the Kardashian-Jenner family does is oversized. To stay on-brand, it needs to be bigger than it is.”