Rihanna’s Fenty Beauty Hit by £60M Loss — Crisis Looms
Fenty Beauty, the groundbreaking cosmetics brand launched by superstar Rihanna, has reported a significant financial blow. Newly filed documents reveal the company suffered a loss of nearly £60 million last year. This news shocks an industry that once saw the brand as an unstoppable force.
Behind the Gloss: A Deepening Financial Slide
The parent company, Fenty Beauty Ltd., submitted its accounts to Companies House. They show a pre-tax loss of £59.9 million for 2023. This figure marks a sharp decline from the previous year’s £38 million loss.
Simultaneously, the company’s revenue fell sharply. It dropped from £187.4 million to just £98.9 million. This 47% decrease indicates a major challenge in sustaining sales momentum.
Analyzing the Downturn: What’s Hurting Fenty?
Industry analysts point to several factors for this downturn. The global cosmetics market has become intensely competitive. New and established brands now aggressively fight for market share, many emulating Fenty’s own strategy of inclusive shade ranges.
Furthermore, the post-pandemic “makeup boom” appears to be slowing. Economic pressures are causing consumers to cut back on discretionary spending. High-end beauty products are often among the first items shoppers remove from their carts.
A House Divided? The Kendo Connection
Fenty Beauty operates as a joint venture with LVMH’s beauty incubator, Kendo Brands. This partnership fueled its meteoric rise in 2017. However, some experts suggest the brand may be facing internal strategic challenges.
The parent company’s filing states that directors are “considering the group’s future funding options.” This language often signals a need for a financial restructuring or a new strategic plan to ensure long-term viability.
