LVMH Considers Selling 50% Stake in Rihanna’s Fenty Beauty, Valued Up to $2 Billion

Key Takeaways

LVMH is considering selling its 50% stake in Fenty Beauty, in partnership with investment bank Evercore.
Fenty Beauty, co-owned by Rihanna, generated approximately $570 million in revenue in 2021.
The brand is valued between $1 billion and $2 billion, with LVMH’s beauty segment seeing a slight decline in the early part of fiscal 2025.

LVMH Considers Fenty Beauty Stake Sale

LVMH, the luxury goods giant, is reportedly contemplating the sale of its 50% stake in Fenty Beauty, co-owned by pop star Rihanna. This exploration of options involves collaboration with investment bank Evercore, as first reported by Reuters. Launched in 2017, Fenty Beauty quickly became known for its inclusive range of beauty products and resonated with a diverse audience.

As of 2021, Fenty Beauty generated an impressive revenue of about $570 million. Forecasts suggest net sales of approximately $450 million for 2024, indicating the brand’s financial stability and potential for continued growth. Experts estimate the overall valuation of Fenty Beauty to be between $1 billion and $2 billion, making it a significant player in the cosmetics industry.

In conjunction with the exploration of the Fenty stake sale, LVMH has reported its overall performance in the perfumes and cosmetics sector for the first three quarters of the 2025 fiscal year. The segment generated revenues totaling around 6,040 million euros (approximately 7,018 million dollars), marking a 2% decline year-over-year. However, the growth in the third quarter showed a slight increase of over 2%, indicating positive momentum in other areas.

The decision to assess a stake sale in Fenty Beauty aligns with LVMH’s strategic goals to optimize its portfolio in the luxury sector. As consumer preferences evolve, the company is looking to navigate its investments more actively. The outcome of this exploration will be closely observed by industry analysts and stakeholders, given Fenty’s significant impact on the beauty landscape since its inception.

Overall, LVMH’s potential divestment of its stake in Fenty Beauty reflects broader shifts within the cosmetics market and the luxury segment’s response to changing consumer demands. As Fenty Beauty continues to flourish under Rihanna’s leadership, its future trajectory will play a crucial role in shaping LVMH’s strategies moving forward.

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