Kylie Jenner Sold Kylie Cosmetics For $600M, Company Stocks Drop
Kylie Jenner is the world’s youngest self-made billionaire. Sure, have questioned the legitimacy of the term “self-made” applying to Kylie before. However, the fact remains that Kylie has built up a billion dollar brand for herself, which is no small feat, no matter how much help you have. Finance experts have even gone so far as to speculate about Kylie’s apparent flair for success. After all, not everybody can cause a company’s value to drop over $1 billion after taking to Twitter to complain. “The Kylie Effect” is now being called into question, however, with some theorizing the young beauty mogul has lost her touch. This is due to a drop in stocks after Kylie Jenner sold Kylie Cosmetics (or at least a 51% majority) to beauty giant Coty.
Kylie Cosmetics Stock Drops After Sale
While finance “experts” are quick to comment on any trend, as is the situation is muddy at best. News stories popped up with acne-like speed when the news broke out about Kylie selling her business. Why would a young twenty-something sell her majority in a billion dollar company with her name on it? Naturally, the speculation that followed didn’t do much for the brand’s name, which so clearly has Kylie written all over it.
Kylie’s majority sale of her company comes almost exactly four years after her initial launch of her makeup and product lines. Her young company was booming at first, selling out almost instantaneously, and generating the young professional enormous profits. Now, it seems that the young mogul has made enough profits, and decided to move onto bigger and better things, like caring for her daughter Stormi. This doesn’t bode well for her business, as it implies that Kylie could be focusing her attentions elsewhere. Shareholders seem to agree, and Kylie Cosmetic’s stock has dropped almost 5% in the few days since the sale went through. It seems logical: if you were an investor and saw that Kylie Jenner sold Kylie Cosmetics, you might lose a little faith too.
Kylie Can’t Escape the Rumors
Besides the floundering of her businesses, Kylie seems to be under fire from all sides. Rumors of plastic surgery continue to plague the young businesswoman, despite her repeated denials of any procedures. While fan detectives and wannabe investigators continue to photoshop images and compile image collections designed to showcase the apparent procedures, Kylie has just been trying to ignore the naysayers. However, that could prove difficult now that her makeup company is taking some heat.
The quality of Kylie’s makeup products has always been in question, with many experts and makeup artists questioning how top-notch her products really are. Although the array of styles and colors seem extensive, they aren’t – especially when compared to arguably higher-end products that retail for similar prices. That’s the other thing that Kylie Cosmetics has always had going against it. The price of the products is much higher than you would expect for what you’re getting. Are the matte lipsticks offered by Kylie Cosmetics top-notch? Definitely. However, nearly every other product offered in her $280 packages could be (and have been) described as mid-range, and sometimes even mediocre.
Is “The Kylie Effect” Dead?
So Kylie Jenner sold Kylie Cosmetics, and stocks dropped five percent. While those who can’t stand anything Kardashian or Jenner related might be praying that this marks the end of Kylie Jenner’s influence in the market … they shouldn’t hold their breath. A five percent drop in stock isn’t much of anything, really. The truth is, her products are still going to make millions on a yearly basis. Plus, you can’t ignore the fact that Kylie sold that 51% stake for a whopping $600 million, meaning that her aforementioned status of billionaire won’t be going away anytime soon.