Forbes Magazine revoked its declaration that Kylie Jenner is a billionaire on Friday, accusing the social media influencer of inflating her income from her cosmetics company, Kylie Cosmetics, as part of a “web of lies.”
The magazine claims that Jenner, 22, inflated the sales figures of her namesake company Kylie Cosmetics’, accusing the makeup mogul’s team of forging tax returns to boost her net worth and thus revoking her billionaire status.
Forbes named Jenner the world’s youngest self-made billionaire at 21 on its March cover last year after she sold Kylie Cosmetics to beauty behemoth Coty in a deal valued at $1.2 billion. However, while Jenner walked away with an estimated $340 million after-tax from the sale, Forbes reports after analyzing six-months of filings from publicly traded Coty, that the reality star is “not a billionaire.”
Forbes noted a number of financial inconsistencies reportedly made by Jenner and mother Kris Jenner (who is also Kylie Jenner’s manager) suggesting that the beauty business is less profitable than the family has presented it to be. In 2018, the Jenners claimed Kylie Cosmetics made $360 million, however, Coty reported the number was closer to $125 million.
The magazine reported that Jenner’s rep claimed Kylie Jenner’s skincare line, which launched last year, made $100 million within a month and a half of its debut, however, the filings showed it was slated to end the year with $25 million in sales.
Forbes said in the report that the Jenners likely had an accountant draft false tax returns to show the magazine in order “to help juice Forbes’ estimates of Kylie’s earnings and net worth. While we can’t prove that those documents were fake (though it’s likely), it’s clear that Kylie’s camp has been lying.”
Forbes says Jenner’s income is likely just under $900 million.
The report read;
“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 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.
“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.
“Kylie’s skincare line, which launched in May 2019, did $100 million in revenues in its first month and a half, Kylie’s reps told us. The filings show the line was actually “on track” to finish the year with just $25 million in sales.”
Michael Kump, an attorney for Kylie said in a statement: “The article is filled with outright lies. Forbes’ accusation that Kylie and her accountants ‘forged tax returns’ is unequivocally false and we are demanding that Forbes immediately and publicly retract that and other statements.”