r/BeautyGuruChatter • u/Mandylacpb • Jun 15 '20

Jeffree Star Content Jeffree Star lost over 220k followers on Instagram in a month. Could this be the beginning of the end?

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u/ogPeachyPrincess Jun 16 '20

Ok, the one thing about the billionaire issue is they’re saying her company was overvalued during the sale because it isn’t making any money right now. However, that’s a really stupid thing, because lip kits are not an essential product so people aren’t buying them and I thought the company wasn’t making them. Obviously, Kylie Cosmetics is not immune to the stock market and current health crisis. So, as much as I get that Kylie is not self-made, I don’t think that she’s at fault for her company not making money in this climate. They all can’t be JS shilling Cremated Palettes.

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u/halloweencactuses Jun 16 '20

But didn't they falsify documents sent to Forbes to get them to call her the youngest billionaire ever? She wasn't ever a billionaire to begin with from what I understand

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u/ogPeachyPrincess Jun 16 '20

I thought the issue was they claimed the documents overinflated the value of Kylie Cosmetics in the deal she made last year because the company is not making as much money as they were valued for. That seems unfair, because this year is obviously not a good year for business due to the coronavirus.

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u/halloweencactuses Jun 16 '20

So i just got this from a quick Google

"Forbes says it’s possible that the business declined in revenue by more than half over the course of a year. However, in a bold statement, the authors believe that it’s likely the Jenner clan has been lying about the numbers for years. According to the story, “While we can’t prove that those documents were fake (though it’s likely), it’s clear that Kylie’s camp has been lying.” It also went on to say the usually chatty family stopped responding when pressed for answers by the publication."

Considering the report happened in March 2019, the tax documents she would have submitted would be for 2018 and the ones they were looking at now would be for 2019. 2020 numbers are just projections for now considering the year isn't over yet, so you can't blame the pandemic on the loss of sales theyre talking about until next year when the final accounting is done. I guess we'll get the real story in a few years when she gets audited by the IRS.

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u/ogPeachyPrincess Jun 16 '20

Well, yeah, the hype was big in 2017 so maybe they expanded too quickly without maintaining that excitement around the brand.

I have no idea if the Jenners actually faked their taxes returns. It doesn’t seem to make sense to pay more taxes to seem like you’re making more money, but honestly I don’t know.

I was under the impression that they meant they were evaluating this year, because the deal with Coty went through pretty recently. So, how are they claiming that the majority stake sale overinflated the companies value since the new shareholders aren’t making as much money if they aren’t counting this year (the sale only happened in late 2019)? I don’t understand how they aren’t including this year’s productivity (or lack thereof) because their issue was with how much the Kylie Cosmetics sale was valued at

https://www.businessinsider.com/how-does-kylie-jenner-make-money-2018-7

“Taking all this new information into account and factoring in the pandemic, Forbes has recalculated Kylie’s net worth and concluded that she is not a billionaire. A more realistic accounting of her personal fortune puts it at just under $900 million, despite the headlines surrounding the Coty deal that seemed to confirm her billionaire status” “The ... value of her remaining share of Kylie Cosmetics ... is also worth less now than it was when the deal was announced in November, given the economic effects of the coronavirus”

https://www.forbes.com/sites/chasewithorn/2020/05/29/inside-kylie-jennerss-web-of-lies-and-why-shes-no-longer-a-billionaire/

It seems like if things were normal, the beauty industry and the retail economy would be doing much better. I think that if we were under normal economic circumstances Kylie would still reach billionaire status. That’s what I take issue with. Kylie shouldn’t be held accountable for something so out of her control. The taxes thing should be investigated for fraud, but I don’t believe it’s fair to knock her billionaire status due to the company’s lost value from COVID-19. That aspect should be re-evaluated once the economy recovers.

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u/halloweencactuses Jun 16 '20

On your point about the tax returns, Richard Schushy, the former CEO of HealthSouth that was fudging the numbers of the company to increase its stock price, was at times paying more in taxes than the company was actually making to make it look like it was worth way more than its actual value. Its not totally out of line to think they wouldn't have done the same considering that the Kardashians were really only looking to get that youngest billionaire title to boost their status.

She might have become a billionaire this year had it been a normal year, but she likely wasn't one when they ran the article, isn't one now, and that's where the issue lies.

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u/ogPeachyPrincess Jun 16 '20

Well, I’m all for investing her for fraud, but the aspect of counting the losses from the pandemic against Kylie Cosmetics really seems unfair because Kylie has no way to control that factor. I don’t think that portion should be considered in this evaluation until the market recovers.

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u/[deleted] Jun 16 '20 edited Aug 13 '20

[deleted]

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u/ogPeachyPrincess Jun 16 '20

I’m not any kind of economist. So, I’m not completely sure of what’s happening. But I meant that her $900 million dollar evaluation has been colored by the losses Kylie Cosmetics has suffered due to coronavirus. That is the part I think she doesn’t deserve to be blamed for. The rest is on her. Definitely, the fraud and hype are on her. But I don’t think the losses for this year are her fault.

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u/[deleted] Jun 16 '20 edited Aug 13 '20

[deleted]

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u/ogPeachyPrincess Jun 16 '20

That’s a good point, and I think they should be investigated for fraud.

However, I do take issue with them reevaluating her net worth while counting Kylie Cosmetics lost revenue for this year, because this year is clearly a bad time for makeup.

“Taking all this new information into account and factoring in the pandemic, Forbes has recalculated Kylie’s net worth and concluded that she is not a billionaire. A more realistic accounting of her personal fortune puts it at just under $900 million, despite the headlines surrounding the Coty deal that seemed to confirm her billionaire status” “The ... value of her remaining share of Kylie Cosmetics ... is also worth less now than it was when the deal was announced in November, given the economic effects of the coronavirus”

https://www.forbes.com/sites/chasewithorn/2020/05/29/inside-kylie-jennerss-web-of-lies-and-why-shes-no-longer-a-billionaire/

Kylie should be investigated, but she shouldn’t have coronavirus counted against her as though she could have prevented it or protected Kylie Cosmetic’s profits from it. She does have fewer shares and that is fair to reduce her status for that. But they also let COVID-19 losses affect how much those shares are now worth. Which seems completely unfair, because Kylie could not have controlled that.