Last fall, reports emerged that LVMH was looking to offload its stake in Rihanna’s once-groundbreaking business, Fenty Beauty. Many were shocked, given the seismic success the brand had achieved.
Since it launched in 2017, Fenty Beauty has revolutionized consumer expectations with its wide-ranging and inclusive approach to foundations. After Fenty, it became a cancelable offense for beauty brands not to offer diverse shade ranges from the get-go. The brand’s launch was a cultural watershed, forcing the entire industry to rethink its approach to inclusivity.
But now, the partnership between the French luxury conglomerate and the Barbadian superstar appears to be fraying.
The Cracks in the Partnership
LVMH’s reported desire to exit Fenty Beauty raises questions about the brand’s future and the sustainability of its blockbuster success. While Fenty Beauty remains a major player in the cosmetics industry, sources suggest that the business may not be meeting the massive growth expectations that justified its initial hype.
Competition in the inclusive beauty space has intensified dramatically since Fenty’s debut. Nearly every major brand now offers an extensive shade range, diluting Fenty’s unique selling proposition. Celebrity beauty brands have also proliferated, creating a crowded and fiercely competitive market.
The Financial Realities
For LVMH, a potential exit likely comes down to financial performance and portfolio strategy. The conglomerate has shown a willingness to shed assets that do not align with its long-term vision or are underperforming relative to their potential.
Fenty Beauty’s reported revenue is substantial, but the cost of maintaining its growth trajectory — including marketing, product development, and global expansion — may be cutting into margins. LVMH may see more lucrative opportunities elsewhere in its vast portfolio, which includes brands like Dior, Louis Vuitton, and Sephora.
Rihanna’s Empire
For Rihanna, Fenty Beauty remains a crown jewel in her growing business empire, which also includes the wildly successful Savage X Fenty lingerie line and her Fenty fashion house. Losing LVMH as a partner does not mean the end of Fenty Beauty; Rihanna could seek another partner or run the brand independently.
However, LVMH’s backing provided not just capital but also logistical and distribution expertise that would be difficult to replace. A split would mark a significant moment for the brand, potentially altering its trajectory.
The Bottom Line
LVMH is reportedly seeking to sell its stake in Rihanna’s Fenty Beauty, the cosmetics brand that revolutionized the industry with its inclusive shade range. The move comes nearly a decade after the brand’s launch. While Fenty Beauty remains a major player, increased competition and shifting market dynamics may have affected its growth. A potential split would raise questions about the brand’s future strategy and Rihanna’s expanding business empire.
