LVMH Explores Sale of 50% Stake in Rihanna's Fenty Beauty
Luxury conglomerate LVMH is reportedly considering selling its 50% stake in Fenty Beauty, the highly successful cosmetics brand co-owned with global superstar Rihanna. According to sources familiar with the matter, the French luxury giant has engaged investment bank Evercore to manage the potential sale process. Fenty Beauty, which launched in 2017 through LVMH's Kendo Brands incubator, generated approximately $450 million in net sales during 2024 and could be valued between $1 billion to $2 billion in a potential transaction.
Luxury goods conglomerate LVMH is exploring the potential sale of its 50% stake in Fenty Beauty, the groundbreaking cosmetics brand co-owned with Grammy Award-winning artist and entrepreneur Rihanna. According to sources familiar with the matter, the French luxury powerhouse has initiated discussions regarding divesting its significant holding in the beauty venture that revolutionized the cosmetics industry with its inclusive approach to beauty products.
The Strategic Review Process
LVMH has reportedly engaged investment bank Evercore to advise on the potential sale of its Fenty Beauty stake, according to three people with knowledge of the matter. The confidential process reflects LVMH's ongoing strategic review of its extensive portfolio of luxury brands and investments. All sources requested anonymity due to the sensitive nature of the discussions, highlighting the competitive nature of the luxury beauty market and the significant value represented by the Fenty Beauty brand.
Fenty Beauty's Market Position
Fenty Beauty has established itself as a powerhouse in the cosmetics industry since its 2017 launch through LVMH's in-house beauty incubator, Kendo Brands. The brand generated approximately $450 million in net sales during 2024, demonstrating its strong market presence and consumer appeal. Industry analysts suggest the company could be valued between $1 billion to $2 billion in a potential transaction, reflecting its substantial market position and growth trajectory.
Ownership Structure and Brand Origins
The ownership structure of Fenty Beauty is equally divided between Rihanna, whose full name is Robyn Rihanna Fenty, and LVMH, with each party holding 50% of the company. The Barbados-born superstar launched the brand with the support of Kendo Brands, creating a makeup line specifically designed to serve a wider range of skin tones and types, including Black, Hispanic, and Asian women. This inclusive approach fundamentally changed industry standards and consumer expectations in the beauty sector.
Market Context and Industry Trends
The potential sale of LVMH's stake in Fenty Beauty comes during a period of significant consolidation and strategic realignment in the beauty industry. Earlier this year, Elf Beauty acquired Hailey Bieber's company Rhode for $1 billion, highlighting the premium valuations being placed on celebrity-backed beauty brands with strong market positioning and growth potential. Fenty Beauty products are currently distributed through major retailers including Sephora and Amazon, providing broad market access and consumer reach.
The exploration of a stake sale in Fenty Beauty represents a significant development in the luxury beauty landscape, potentially marking a new chapter for one of the most successful celebrity-backed beauty brands in recent history. As LVMH evaluates its strategic options, the market will be watching closely to see how this potential transaction might reshape the competitive dynamics within the premium cosmetics sector.
