Rihanna’s Billionaire Status: Fenty’s Fortune
She became the richest female musician in the world. And no, it wasn’t because of her music only.
She wanted to develop a cosmetics company that made “women everywhere (feel) included” when she launched Fenty Beauty in 2017. The beauty line has had an unanticipated consequence: it has assisted her in attaining the status of Billionaire, which is one of the most prestigious in the world.
According to Forbes, Rihanna is now worth $1.7 billion, making her the world’s richest female artist and the second richest female entertainment behind Oprah Winfrey. But she’s not rich because of her songs.
An estimated $1.4 billion of her income is derived from her ownership of Fenty Beauty, in which she now holds a 50% stake, according to Forbes. The rest of her fortune is made up of her $270 million investment in Savage x Fenty lingerie and her earnings as a Grammy-winning musician and actor.
With 101 million Instagram followers and 102.5 million Twitter followers, Rihanna isn’t the only celebrity to use her social media following to develop a beauty brand, but she’s clearly the most successful.
Fenty Beauty, a 50/50 joint venture between LVMH (the world’s second-richest corporation) and Fenty Beauty, was created in 2017 with the goal of inclusivity in mind.
Products are available in a wide range of colors, including deeper tints for women of color, and they are represented by a varied set of people in the company’s advertisements.
The items were a huge success since they were available online and in Sephora stores, both of which are owned by LVMH. According to LVMH, the line had a sales of more than $550 million in its first full calendar year, beating out other celebrity-based businesses like Kylie Cosmetics, KKW Beauty, and Honest Co. created by Jessica Alba and Kylie Jenner, respectively.
There were a lot of ladies who believed that there were no lines out there that catered to their skin tone.” One may describe the lighting as “bright, medium-dark, and dark,” according to co-founder of Bluestock Advisors Shannon Coyne.
Everyone knows this is not true. The first brand to say, “I want to speak to all of those different people,” she was one of the first.
Despite the slowdown in sales caused by the pandemic, the beauty industry is still worth a lot of money. Larger cosmetic conglomerates like Estée Lauder and L’Oréal have rebounded and are now trading at 7.5 (or more) times annual revenues.
Beautycounter and Charlotte Tilbury, for example, signed multi-billion dollar transactions with investment companies earlier this year.
Rihanna will be happy to hear that. Forbes thinks that Fenty Beauty is worth a conservative $2.8 billion due to the high multiples at which beauty companies are trading. The corporation appears to be on the verge of expanding even further.
According to LVMH’s 2020 annual report, last year’s debut of Fenty Skin had a “very promising start” and “created unparalleled excitement,” and Fenty Beauty had “kept its appeal as a leading beauty brand.”
Rihanna’s other billion-dollar ventures include more than just Fenty Beauty. As of February, her underwear business Savage x Fenty has a valuation of $1 billion and received $115 million in investment.
Blue-chip investors including Jay-Marcy Z’s Venture Partners and private equity firm L. Catterton (in which Bernard Arnault is an investor) are stockholders in the company, which began in 2018 as a joint venture with TechStyle Fashion Group.
Forbes estimates that Rihanna owns a 30% share in the company. Customer acquisition and retail expansion are expected to benefit from the most recent round of funding, according to reports.
But it’s not like Rihanna is a one-trick pony. Fenty, the high-end fashion and accessories house founded by LVMH and Rihanna in February, was shut down in a statement to Forbes in February.
Aiming to expand Rihanna’s brand of inclusivity, Fenty was launched in 2019 and offers a variety of sizes. This high-end clothing line, like many others, suffered during the pandemic and will release its final collection in November 2020.
Is there anything her admirers don’t like about her work as a fashion and cosmetics entrepreneur? It keeps her occupied for a long period of time. It’s been over two years since the singer’s last album, Anti, was released.
From a financial standpoint, that may be fine: “She’s building a brand that’s separate from her.” “It’s not only about Rihanna,” adds Coyne, a consultant. Although her music may not be to everyone’s taste, she has a distinct style in the fashion and cosmetics industry.