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Rare beauty is the main factor behind Gomez’s wealth.
Though Gomez is best known as an actor and musician, the bulk of her fortune (more than 80%, according to Bloomberg estimates) comes from her cosmetics brand, Rare Beauty. The publication estimates that Gomez modestly owns 51% of the business (the brand has only two known investors), and that it’s worth more than $2 billion, confirming previous Bloomberg reports. Fashion business, Its value was pegged at a similar figure.
Analyzing its reported revenue ($300 million to $350 million) and current price-to-sales multiples of publicly traded beauty companies like Coty and L’Oreal might value the brand slightly less, but the company’s momentum and room to grow (it’s currently only sold at Sephora and online) make it more appealing.
“The price didn’t surprise me because it’s a wholesome brand with beloved products,” beauty industry expert Annie Lau told Business Insider of the $2 billion figure earlier this year.
Launched in 2020, the cosmetics line has reached heights few other celebrity brands have achieved. While many struggling A-list celeb-backed companies rely too heavily on the talent’s fanbase, Rare Beauty, like Rihanna’s Fenty Beauty, has become a household name in its own right and grown beyond just being a “selenator.”
The brand’s success has been discussed during earnings calls by retailer Kohl’s and manufacturer Elementis, who sell the brand in Sephora stores, and it has several of the brand’s products among Sephora’s best-selling items, including cult favorites like liquid blush.
The brand has been especially successful on social media, where Gomez dominates: she has been one of the most followed people on Instagram for years.
Rare Beauty’s online popularity “shows value in today’s market,” beauty industry veteran Jeffrey Teng told BI earlier this year. “Cosmetics brands are driven by social media. What gets talked about on social media sells in stores. It’s black and white.”
Earlier this year, reports circulated that Gomez was looking to sell the brand and officially cash in on the value she’d built while the products were still popular.