Kylie Jenner is no longer a billionaire, according to a new report from Forbes.
Jenner was named the youngest-ever self-made billionaire by Forbes magazine in March 2019 with Kylie Cosmetics being worth at least US$900 million.
In November 2019, Jenner sold a 51 per cent stake in Kylie Cosmetics to Coty for $600 million, and now the parent company has released newly obtained documents that Forbes alleges show Jenner and her mother, Kris Jenner, inflated the success of the Kylie Cosmetics.
The newly obtained documents also revealed the fact that Kris owns a small share in Kylie Cosmetics, which decreases Kylie’s shares in her company to 44.1 per cent compared to her previously acknowledged 49 per cent, according to Forbes.
“Forbes had been estimating that her business, which has little overhead, was notching 44 per cent net margins. But Coty’s filings indicate that Kylie’s profits are likely lower than we figured, since her EBITDA margin — which factors in some, but not all, of her expenses — is only around 25 per cent,” the Forbes report read.
“Based on this new information — plus the impact of COVID-19 on beauty stocks and consumer spending — Forbes now thinks that Kylie Jenner, even after pocketing an estimated $340 million after taxes from the sale, is not a billionaire,” the outlet reports.
Forbes reported that Kris hosted Forbes’ staff multiple times at her mansion, allegedly to share inflated financial statements boasting the success of her daughter’s business.
“The business was never that big to begin with, and the Jenners have lied about it every year since 2016 — including having their accountant draft tax returns with false numbers — to help juice Forbes’ estimates of Kylie’s earnings and net worth,” the article stated. “While we can’t prove that those documents were fake (though it’s likely), it’s clear that Kylie’s camp has been lying.
“Kylie’s business is significantly smaller and less profitable than the family has spent years leading the cosmetics industry and media outlets, including Forbes, to believe,” the publication wrote.
The outlet says that the 22-year-old reality star’s recalculated net worth is closer to $900 million versus $1 billion.
Jenner has responded to Forbes’ new report on Twitter, writing: “What am I even waking up to. I thought this was a reputable site.. all I see are a number of inaccurate statements and unproven assumptions lol. I’ve never asked for any title or tried to lie my way there EVER. period.”
In another tweet, Jenner wrote: “but okay. I am blessed beyond my years, I have a beautiful daughter, and a successful business and I’m doing perfectly fine.