Fenty Beauty was founded in 2017 by Robyn Fenty, better known as Rihanna, to make “women everywhere (feel) included.” A seemingly unforeseen result: She is now a billionaire, joining one of the world’s most elite ranks thanks to the success of her cosmetics business.
Rihanna Net Worth
According to Forbes, Rihanna’s net worth is $1.7 billion, making her the world’s wealthiest female singer and the second-richest female entertainment behind Oprah Winfrey. But she hasn’t become so rich because of her music.
She has an estimated net worth of $1.4 billion, and Forbes has confirmed that she owns 50% of the company Fenty Beauty. Most of the remaining money comes from her $270 million investment in the lingerie brand Savage x Fenty and her earnings as a successful actress and artist.
Born in Barbados, Rihanna is not the only celebrity to use her social media following—she has 101 million Instagram followers and 102.5 million Twitter followers—to develop a beauty brand, but she is the most prosperous one.
In 2017, Fenty Beauty was introduced to be inclusive. It is a 50/50 joint venture with the French luxury goods behemoth LVMH, led by Bernard Arnault, the second-richest person in the world. Its products are available in various colors—the foundation is public in 50 tones, including deeper shades that are more difficult to find for women of color—and are shown in its advertisements by an equally wide range of people.
According to Forbes, The goods offered online and at Sephora shops that LVMH also owns were a huge hit. By 2018, the label has generated over $550 million in yearly sales, outpacing other celebrity-founded companies, including Kylie Jenner’s Kylie Cosmetics, Kim Kardashian West’s KKW Beauty, and Jessica Alba’s Honest Co.
“A lot of women felt there were no lines out there that catered to their skin tone. It was light, medium, medium dark, dark,” says Shannon Coyne, cofounder of consumer products consultancy Bluestock Advisors. “We all know that’s not reality. She was one of the first brands that came out and said, ‘I want to speak to all of those different people.’”
Despite the pandemic’s slowdown in cosmetics sales, the value of the beauty industry has not changed. More giant cosmetic conglomerates’ stocks, such as those of Estée Lauder and L’Oréal, have recovered and are now trading at spectacular multiples of 7.5 (or more) times annual revenues.
Independent companies like Beautycounter and Charlotte Tilbury, valued at billions of dollars, signed agreements with investment groups earlier this year. The news is fantastic for Rihanna. Fenty Beauty is worth a conservative $2.8 billion due to the outstanding multiples at which the market for beauty products is trading.
There are other billion-dollar companies than Rihanna’s Fenty Beauty. Savage x Fenty, her lingerie company, raised $115 million in investment in February at a $1 billion valuation. Blue-chip investors like Bernard Arnault’s private equity firm L. Catterton and Jay-Z’s Marcy Venture Partners are among the company’s shareholders.
It was founded in 2018 as a joint venture with TechStyle Fashion Group. Rihanna still owns a 30% share in the company. The most recent round of money would be utilized for retail growth and consumer acquisition. Rihanna doesn’t necessarily make everything she touches shine.
In a letter to Forbes in February, LVMH and Rihanna acknowledged that their other business, a high-end clothing and accessory label also called Fenty, had been shut down. When Fenty was introduced in 2019, it aimed to expand Rihanna’s inclusion message and provide styles in various sizes.
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However, the pricey line suffered during the pandemic, just like many other luxury fashion labels, and its final collection was released in November 2020.
Is that the only criticism some of her followers may have of her work as a fashion and cosmetics tycoon? She’s kept busy by it. The singer hadn’t released a new album since 2016’s Anti, when she usually always released an album.
From a financial perspective, that may be just fine:
“She is creating a brand outside of herself. It’s not just about Rihanna,” says consultant Coyne. “Even if you don’t like her music, she’s created a real style in the fashion and beauty space.”
'She is creating a brand outside of herself. It's not just about Rihanna,' said consultant Shannon Coyne to Forbes. 'Even if you don't like her music, she's created a real style in the fashion and beauty space.
— NowThis (@nowthisnews) August 4, 2021
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