Kylie Jenner (22) is in the midst of one of the biggest controversies of her life after Forbes magazine accused the businesswoman of creating a “web of lies” to “inflate” the size of her company and success.
In an article titled “Within Kylie Jenner’s Web of Lies and Why She Is No Longer a Billionaire,” the publication claims that the minor from the Kardashian clan and her family lied “about the company’s figures and falsified tax returns to reach billionaire status. ”
Recall that a year ago the same publication named Jenner the youngest self-created billionaire in the world and covered extensively the sale of 51% of her company Kylie Cosmetics to the multinational Coty, in an agreement that exceeded 1.5 billion Dollars.
“A less flattering truth emerged in the fine print of the agreement. Coty’s publicly traded documents in the past six months reveal one of the family’s best-kept secrets: Kylie’s business is significantly smaller and less profitable than the family has led her to believe for years. the cosmetic industry and the press, including Forbes ”, they sentenced in the article.
Forbes says the revenue for the 12-month period prior to the deal is significantly less than what the Jenners had disclosed. Coty said sales have increased 40% since 2018, which means the business only generated around $ 125 million that year, not close to the $ 360 million that Jenners had led Forbes to believe, they said.
“‘The’ Kylie ‘skincare line, launched in May 2019, earned $ 100 million in revenue in its first month and a half,” Kylie representatives told us. The presentations show that the line was really “on track” to end the year with only $ 25 million in sales, “they added.
“There’s practically no way the numbers the Jenners sold in previous years could be true either. If Kylie Cosmetics made $ 125 million in sales in 2018, how could it have made $ 307 million in 2016 (as the company’s alleged tax returns say) or $ 330 million in 2017? “They add.
“Chances are: The business was never this big to start with, and the Jenners have lied about it every year since 2016, including the fact that their accountants write tax returns with bogus numbers, to help estimate Forbes’ calculations. on Kylie’s earnings and net worth. While we cannot demonstrate that those documents were false (although it is probable), it is clear that Kylie has been lying, ”they sentenced.
With this and other data, the magazine calculates that Kylie’s personal fortune would be less than $ 900 million dollars, so it would not be a billionaire.
The obsession with Forbes
According to the magazine, Kylie’s team was genuinely interested in her appearing in the publication and on the list of the world’s wealthiest. “A few months after her sister Kim Kardashian West gained coverage on Forbes in July 2016, Jenner’s advertisers began a campaign to ‘get a Forbes cover for Kylie,” “they recalled.
“‘Revenue was $ 400 million during the first 18 months of business with a personal profit of $ 250 million for Kylie,” they said, “they added in the article.
Pressured by the requests for proof, they opened their books. During meetings at Kris Jenner’s palace, Hidden Hills, California, and at the family accountant’s office, Forbes was shown tax returns detailing $ 307 million in 2016 income and personal income of more than $ 110 million for Kylie. that year ”, they assured.
“‘It would be enough to put her at number two on the Celebrity 100 list, behind Taylor Swift,’ the accountant was quick to point out. But the documents, despite looking authentic and bearing the signature of Kylie Jenner, were not exactly convincing as the story they told, of the e-commerce brand Kylie Cosmetics that grew from nothing to $ 300 million in sales in a single year, it was hard to believe ”, they commented.
“After talking to a handful of analysts and industry insiders who also found the Jenners’ claims implausible, we made a more reasonable estimate for our 2017 Celebrity 100 list: $ 41 million in overall earnings for Kylie, good at number 59 Kris was ‘frustrated’, Jenner’s public relations representatives responded, ”they added.
The publication finally ensured that “lies, omissions and fabrications” were expected of a ‘”family that refined and monetized the concept of ‘ being famous for being famous'”.