LVMH considers selling its stake in Fenty Beauty

LVMH may follow in Kering’s footsteps as it rethinks its position in the beauty industry. The French luxury giant is said to be considering the sale of its 50% stake in Fenty Beauty, the brand founded in partnership with singer Rihanna. According to Reuters, the deal is being advised by investment bank Evercore. So far, neither the conglomerate nor the artist has made any official statements.

The potential divestment comes just two days after Kering completed the sale of its beauty division to L’Oréal, in a move aimed at reducing debt and strengthening its financial position. Both decisions highlight the pressure major luxury groups are facing as the global beauty market softens.

Fenty Beauty was launched in 2017 under Kendo, LVMH’s beauty incubator. From the outset, it stood out for its inclusive approach, offering a wide range of foundation shades that helped redefine industry standards.

In 2020, the brand reached $550 million in revenue and was valued at around $2.8 billion. However, the current macroeconomic environment has shifted significantly. LVMH’s revenue fell by 4% in the first nine months of 2025, down to €58.09 billion, although the third quarter showed some signs of recovery.

Cuts and tighter margins

The company has already taken steps to cushion the impact of the slowdown. In May, it cut 10% of staff at Moët Hennessy, its wine and spirits division, one of the areas hit hardest by falling demand.

LVMH also acknowledged that while it can raise prices by 2% to 3% annually in its premium segments, such increases are not feasible in categories like beauty or cognac. This further squeezes profit margins.

Fenty Beauty’s international expansion

Despite these headwinds, Fenty Beauty continues to grow. This summer, the brand entered into a partnership with Reliance Retail to expand into India. The plan includes a presence in Sephora and Tira Beauty, along with 50 physical stores in 16 cities and online distribution.

This potential sale of half of Fenty Beauty would signal a strategic shift for LVMH. The group is looking to focus on more resilient and profitable segments that can better withstand the global luxury slowdown.