The Kylie Cosmetics CEO quits amid the claims that the business is “significantly less profitably” than assumed. Back in January, CEO Christoph Honnefelder was to assume the role of CEO of both Kylie Cosmetics and Kylie Skin “in the near future.” But he stepped down from his position.
Kylie Jenner is the founder of the company. She sold the company to Coty in a $1.5 million deal. Honnefelder will replace Simona Cattaneo, who until Monday, June 1, was Coty’s President of Luxury Brands. Learn about the details behind Honnefelder’s exit.
Kylie Cosmetics CEO announces his shocking exit
On Wednesday, June 3, Coty announced that Kylie Cosmetics CEO Christoph Honnefelder stepped down. Per In Touch Weekly, the exit happened before he started the job. It also comes after Forbes’ explosive Friday report.
“[Cattaneo] assumes these responsibilities from Christoph Honnefelder, who announced to the senior team internally a number of weeks ago that he would not be assuming the role of CEO of Kylie Beauty,” Coty said in a statement. “Under Simona’s leadership we are excited by the opportunities for Kylie Beauty business, as indicated by the very successful recent launch of Kylie Skin in Europe.”
This news comes after Forbes claimed that Kylie Jenner and her mom, Kris Jenner, exaggerated their wealth and success. In the Friday, May 29 article, the outlet revealed the fine print of the Coty deal that read Kylie Cosmetics only generated “about $125 million” in 2018. This amount was “nowhere near the $360 million the Jenners had led Forbes to believe.” In addition, Kylie Skin will only generate $25 million instead of the estimated $100 million.
Kylie Jenner denies Forbes’ claims
Kylie Jenner denied the claims that she inflated her business. She posted a series of tweets after the article published. “What am I even waking up to?” she wrote. “I thought this was a reputable site. All I see are a number of inaccurate statements and unproven assumptions. LOL. I’ve never asked [to be labeled a billionaire] or tried to lie my way there EVER. Period.”
Also, Kylie responded to the claims that she “likely forged” her tax returns provided to Forbes. She retaliated, “That’s your proof? So you just THOUGHT they were forged? Like, actually, what am I reading.”
Despite the claims, Kylie Cosmetics is still doing well. The company has over 24.2 million Instagram followers and tons of loyal customers.
Kylie Cosmetics stocks continue to drop
Coty’s stocks have declined since the Forbes‘ report. Coty Inc. reported its third-quarter net revenues down 23.2% to $1.54 billion for the period ending March 31, per BizWomen. During the third-quarter loss, it increased in a loss of 36 cents per share from a previous loss of 2 cents per share.
Back in May, Coty agreed to sell a majority of its shares of its beauty and retail hair businesses, including the Clairol, ghd, and Wella brands, including its OPI nail care brand, to KKR. Since then, the company’s stock decreased to 54% since the announcement of its deal due to concerns with high-interest payments, per the Wall Street Journal.
So, what are your thoughts? What do you think of the future of Kylie Cosmetics? Sound off below in the comments section.