Forbes, which conferred the title ‘world’s youngest self-made billionaire’ on Kylie Jenner in 2019, has reported that the cosmetic mogul is no longer a billionaire.
Jenner had made millions from her company, Kylie Cosmetics, which she later sold a 51% stake to a beauty company Coty in a deal that valued her company at $1.2 billion.
But Forbes, the American business magazine in its latest report titled: “Inside Kylie Jenner’s Web of Lies — and Why She’s No Longer a Billionaire”, has now said Kylie, even after pocketing an estimated $340 million after tax from the sale, is not a billionaire.
Forbes reports that Jenner and her mother, Kris Jenner, inflated their wealth in documents provided to the publication about Kylie’s personal wealth and her company’s revenue.
The publication accuses her of ‘lying about company figures and forging tax returns’ to reach the billionaire status.
Forbes claim that filings released by publicly traded Coty over the past six months reveal that Kylie’s business is significantly smaller than people have been led to believe.
According to Forbes, Jenners had previously told them Kylie’s cosmetics company had $360 million in sales in 2018, but a Coty presentation showed revenues were actually closer to $125 million that year.
It further stated;
Revenues over a 12-month period preceding the deal: $177million according to the Coty presentation, far lower than the published estimates at the time.
More problematic, Coty said that sales were up 40% from 2018, meaning the business only generated about $125 million that year, nowhere near the $360 million the Jenners had led Forbes to believe.
This shocking claim comes a year and a month after Forbes itself put Kylie on the cover of its publication and hailed her the youngest self-made billionaire ever two years running.
Forbes also alleged that Jenners family previously invited the publication into their homes and accountants’ offices, and provided them with tax returns “that were likely forged.”
The magazine wrote;
The unusual lengths to which the Jenners have been willing to go reveals just how desperate some of the ultra-rich are to look even richer.
In addition to the adjusted estimates for Kylie Cosmetics’ revenues, Forbes accounted for the adverse impact of the coronavirus pandemic on cosmetics companies, as Kylie still owns part of the company.
The pandemic has adversely affected beauty consumer spending and stocks.
Her wealth is likely closer to just under $900 million, according to Forbes‘ new estimate.
Forbes had addressed the controversy that surrounds the title ‘self-made’ last year, after critics claimed she grew her company from an already privileged background.