LVMH rumored to split from Fenty Beauty and sell its 50% stake

LVMH is reportedly exploring selling off 50% of its stake in Fenty Beauty. The luxury goods giant currently co-owns the company with musician and entrepreneur Rihanna. 

People familiar with the matter, who asked not to be identified due to the confidentiality of the process, told Reuters that Fenty Beauty could be valued between US$1–2 billion. The brand generated approximately US$450 million of net sales in 2024. 

LVMH is said to be working with investment bank Evercore. Its beauty portfolio also includes Sephora, Benefit Cosmetics, KVD Beauty, Guerlain, and Fresh, among others.

Fenty Beauty launched in 2017 with the help of Kendo Brands, LVMH’s in-house beauty incubator. The cosmetics brand offers makeup, skin care, hair care, and fragrances, all sold at Sephora and Amazon.

Personal Care Insights has contacted LVMH, Fenty Beauty, and Evercore for comment. 

Makeup shakeups

Rihanna is credited with changing the makeup industry’s relationship with shade ranges. At Fenty Beauty’s inception, it launched 40 shades for its foundation, putting inclusivity at its core. This prompted other brands to adjust their launches to offer a diverse portfolio of skin tone options.

Fenty Beauty is championed for its inclusive shade ranges.Fenty Beauty has become one of the most successful celebrity-led beauty ventures, alongside Hailey Bieber’s Rhode and Selena Gomez’s Rare Beauty. These brands are increasingly shedding their celebrity-founded trademark and are accepted as mainstay beauty brands. 

In May, E.L.F. Beauty purchased Rhode for US$1 billion. 

In other recent sale rumors, Kenvue is reportedly considering selling or spinning off its skin health and beauty unit following sales slumps and damaging health allegations against its pain reliever, Tylenol.

In a major business move this week, Kering agreed to sell its beauty division to L’Oréal for €4 billion (US$4.66 billion).