Well, here’s a Kardashian-Jenner scandal brewing in the business world:
Forbes published a lengthy feature today breaking down all the ways Kylie Jenner inflated her income to media outlets and the beauty world.
Forbes, which dubbed Jenner the world’s youngest billionaire for multiple years (including this year), reports now that Jenner is no longer a billionaire, especially after the coronavirus pandemic adversely affected beauty consumer spending and stocks.
Forbes reports that Jenner’s beauty company Kylie Cosmetics “is significantly smaller, and less profitable than the family has spent years leading the cosmetics industry and media outlets to believe” after reviewing filings from Coty, the publicly held beauty company to which Jenner sold 51 percent of Kylie Cosmetics.
The outlet additionally detailed that the Kardashian-Jenners went to great lengths to convince people of their wealth. It reports the family invited the outlet “into their mansions and CPA’s offices, and even creating tax returns that were likely forged.”
The outlet goes into great detail explaining why the numbers the Kardashian-Jenner family gave for Kylie Cosmetics were questionable, especially after comparing them to the numbers following Coty’s acquisition.
Forbes reports that with this new information and the COVID-19 climate, Jenner’s net worth is now, according to their calculations, “just under $900 million.”
“More than a third of that is the estimated $340 million in post-tax cash she would have pocketed from selling a majority of her company,” the outlet explained of its calculation.
“The rest is made up of revised earnings based on her business’s smaller size and a more conservative estimate of its profitability, plus the value of her remaining share of Kylie Cosmetics—which is not only smaller than the Jenners led us to believe, but is also worth less now than it was when the deal was announced in November, given the economic effects of the coronavirus.”
The Kardashian-Jenners have not released an official response to the article yet, but Kylie made some tweets after reading the report;