Fenty Beauty at a Crossroads: Inside LVMH's Reported Stake Sale and the Future of Celebrity Beauty Brands

Category: Beauty • Business • Luxury • Retail • Industry Analysis

Beauty & Business

The once red-hot beauty brand co-founded by Rihanna and luxury giant LVMH is entering a new chapter. After transforming the cosmetics industry with its inclusive product lineup, Fenty Beauty is now facing slower growth amid intense competition. Reports indicate LVMH is exploring the sale of its ownership stake, raising questions about what comes next for one of the most influential celebrity beauty brands of the past decade.

Key Highlights

• LVMH is reportedly exploring the sale of its 50% stake in Fenty Beauty.
• Investment bank Evercore has reportedly been advising on a potential transaction.
• Fenty Beauty is estimated to be valued between $1 billion and $2 billion, though no final deal has been announced. 
• Several investors have reportedly expressed interest, including private equity firms. Reports have also linked Jay-Z-backed MarcyPen Capital Partners to discussions, although nothing has been confirmed publicly. 

What's Happening Now?

According to multiple reports, LVMH is reviewing strategic options for its investment in Fenty Beauty as part of a broader effort to streamline its portfolio and focus on core luxury brands. The move comes during a period of slower luxury spending worldwide and increased competition in prestige beauty. 

Importantly, there has been no announcement that Fenty Beauty is shutting down. The brand continues to sell its makeup, skincare, fragrance, and haircare products through Sephora and other retail partners. The reported discussions relate only to LVMH's ownership stake. 

The Deal

The reported transaction involves LVMH selling its 50% ownership in Fenty Beauty while Rihanna would retain her ownership interest unless a separate agreement is reached.

Reports suggest:

• LVMH is seeking buyers for its stake.
• The business could be valued at $1–2 billion.
• No definitive agreement has been announced.
• Neither LVMH nor Rihanna has publicly confirmed a completed sale. 

Why Is This Happening?

Industry analysts point to several factors:

• A crowded celebrity beauty market featuring brands from numerous celebrities and influencers.
• Slower consumer spending on premium beauty products.
• Increased competition from newer brands that have quickly captured market share.
• LVMH's broader strategy of selling or reducing exposure to businesses that are no longer central to its long-term priorities. 

What Happens Next?

Several outcomes remain possible:

• LVMH could successfully sell its 50% stake to another investment firm.
• Rihanna could continue leading the brand with a new financial partner.
• The company could receive additional investment to support future product launches and global expansion.
• If no acceptable offer emerges, LVMH could ultimately decide to retain its ownership. None of these outcomes have been confirmed. 

Why This Matters

When Fenty Beauty launched in 2017, it changed the cosmetics industry by debuting with an unprecedented range of foundation shades, helping establish inclusivity as a new industry standard—a phenomenon often referred to as the "Fenty Effect." Today, the brand faces a different challenge: maintaining growth in a far more competitive beauty market where celebrity-founded brands are now commonplace. 

Important Takeaway

The reports do not indicate that Fenty Beauty is closing. Instead, they suggest that LVMH is evaluating the future of its investment by exploring the sale of its ownership stake. Whether a transaction ultimately occurs remains uncertain, but the discussions reflect broader changes in both the luxury industry and the increasingly competitive celebrity beauty market. 

PPM Deep Dive 

Understanding Rihanna's 50% Ownership Stake

One of the most significant aspects of Fenty Beauty's business model is that Rihanna isn't simply the face of the brand—she is an equity owner.

Unlike many celebrity beauty partnerships that rely on endorsement or licensing agreements, Rihanna co-founded Fenty Beauty with LVMH through its beauty incubator, Kendo Brands, in 2017. The partnership was structured as a 50/50 joint venture, giving Rihanna an ownership interest alongside one of the world's largest luxury groups. 

What Could Rihanna's Stake Be Worth?

Based on reported valuations, Fenty Beauty is currently estimated to be worth between $1 billion and $2 billion.

If those estimates are accurate:

• $1 billion valuation

■  Rihanna's 50% stake would be worth approximately $500 million.

• $1.5 billion valuation

■ Her stake would be worth approximately $750 million.

• $2 billion valuation

■ Her ownership could be worth around $1 billion.

These figures represent estimated market value based on reported company valuations. Rihanna's actual proceeds would depend on whether she sells any portion of her stake, the final negotiated valuation, transaction terms, taxes, and other financial considerations. No sale involving Rihanna's ownership has been announced. 

What Makes Rihanna's Deal Different?

Many celebrity beauty brands are not owned by the celebrity.

Instead, celebrities often enter into licensing agreements.

In a typical licensing deal:

• A beauty company develops and manufactures the products.
• The celebrity licenses their name, likeness, or trademark to the company.
• The celebrity earns royalties or receives fixed payments, sometimes with performance bonuses.
• The company generally owns the business, intellectual property, and long-term operations.

This model allows celebrities to earn income without taking on the operational or financial risks of owning the company.

Equity vs. Licensing: What's the Difference?

Equity Ownership

• Owns part of the company 
• Shares in company growth 
• Builds long-term wealth if company value increases 
• May have voting rights and strategic influence 
• Benefits if the company is sold 

 Licensing Agreement

• Licenses name or image
• Earns royalties or fees
• Income depends on contract terms
•  Limited operational control
• Typically does not share in company sale value unless negotiated

Why Equity Can Be More Valuable

Equity allows founders to benefit from the overall value of the business, not just product sales.

As a company grows through:

• International expansion
• New product launches
• Retail partnerships
• Increased revenue
• Higher profitability

…the value of an owner's stake can also increase.

This is one reason many entrepreneurs and investors view equity as a powerful tool for long-term wealth creation.

What Happens If LVMH Sells Its 50% Stake?

If LVMH completes a sale of its ownership interest, Rihanna would generally continue to own her existing 50% stake unless she chooses to sell part or all of it through a separate agreement.

That means she could remain:

• Co-owner of Fenty Beauty.
• The brand's founder and creative leader.
• A key decision-maker alongside a new investment partner, depending on the terms of the ownership agreement.

No public reports indicate that Rihanna plans to sell her ownership or relinquish control. The reported discussions concern LVMH's stake only. 

PPM Business Insight

Fenty Beauty illustrates a broader shift in celebrity entrepreneurship. Rather than simply endorsing products for a licensing fee, more high-profile founders are seeking meaningful ownership positions that align their financial success with the long-term growth of the business.

Equity can transform a celebrity from a spokesperson into a true business partner, allowing them to participate in the value they help create over time.

Related Sources 

• LVMH ○ Fenty Beauty by Rihanna 

https://www.lvmh.com/en/our-maisons/perfumes-cosmetics/fenty-beauty-by-rihanna

Sources include:

This article includes reporting, market analysis, and publicly available information from the following trusted sources:

• Reuters
• Financial Times (FT)
• Bloomberg
• Women's Wear Daily (WWD)
• Business of Fashion (BoF)
• Cosmetics Business
• Beauty Independent
• Forbes
• LVMH Investor Relations and Corporate Communications
• Kendo Brands
• Sephora
• Power Pulse Magazine editorial research and analysis

Editorial Note: Company valuations, ownership discussions, and potential transactions referenced in this article are based on publicly reported information available at the time of publication. Any reported negotiations or strategic reviews remain subject to change until officially confirmed by the parties involved.

Image Credit 

Image Credit: Fenty Beauty, LVMH, Kendo Brands, Sephora, and/or Getty Images (where applicable). Images used for editorial purposes only. Rights remain with their respective owners.

PPM Editorial Disclaimer

This article is intended for editorial and informational purposes only. Financial figures and company valuations are based on publicly reported estimates and may change as negotiations continue. Research includes publicly available reporting, corporate information, and industry analysis. AI-assisted research was reviewed and fact-checked by a human editor. Final editorial oversight and creative direction are provided by Power Pulse Magazine.