LVMH set to divest its 50% stake in Fenty Beauty
This move aligns with a strategic aim to concentrate resources on brands with stronger revenue potential.
USA – LVMH is reportedly exploring the sale of its 50% stake in Fenty Beauty, an American beauty and cosmetic brand.
This move is part of a broader trend among luxury conglomerates to focus on core brands amid a softening cosmetics market.
LVMH’s potential divestment is less about Fenty Beauty’s performance and more about strategic financial repositioning, possibly to raise cash for a big acquisition like Armani, which could be valued around €10 billion (USD 10.8 billion).
The process is being advised by the investment bank Evercore, but neither LVMH nor Fenty Beauty representatives have publicly confirmed the sale talks.
Fenty Beauty, launched in 2017 under LVMH’s Kendo Brands incubator, generated approximately USD 450 million in net sales in 2024 and is valued between USD 1 billion and USD 2 billion.
The brand revolutionized the beauty market with its inclusive approach, offering makeup for a wide range of skin tones, which helped it gain a large and loyal customer base. Fenty’s offerings include makeup, skincare, haircare, and fragrances, sold via Sephora, Amazon, and other retailers.
LVMH’s consideration to sell Fenty Beauty aligns with a strategic aim to concentrate resources on brands with stronger revenue potentials and adapt to the luxury sector’s current challenges.
This development follows Kering’s recent €4 billion(USD 4.64 billion) sale of its beauty division to L’Oréal, indicating a luxury beauty market recalibration.
As part of this deal, L’Oréal will acquire Kering Beauté, including the heritage fragrance house Creed, which is highly regarded for its craftsmanship and use of rare natural ingredients.
Creed will be integrated into L’Oréal Luxe, positioned to accelerate its global growth in both men’s and women’s markets.
In addition, L’Oréal will receive exclusive 50-year licenses to create, develop, and distribute fragrance and beauty products for Kering’s iconic fashion brands Gucci, Bottega Veneta, and Balenciaga, with the Gucci license commencing after the expiration of the current Coty agreement.
The transaction, subject to regulatory approvals and French employment law obligations, is expected to close in the first half of 2026, with royalties paid by L’Oréal to Kering for the licensed brands.
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