Pat McGrath Labs Beats Kylie Cosmetics in Race to $1 Billion
By Colette Jones
- Pat McGrath Labs valued at $1B
- The makeup line is now available in more than 50 Sephora Stores
After launching her makeup collection in 2016, celebrity makeup artist Pat McGrath’s beauty line has reportedly surpassed the infamous $1 billion mark in value. After coming to fame in the 90s for creating makeup looks for major European fashion shows such as Christian Dior, Giorgio Armani and Prada, McGrath decided to use her influence in the beauty community to build an empire of her own.
Why This Matters: African Americans have cornered the ethnic hair and beauty market, ringing up $54 million of the $63 million total industry spend in 2017, according to Nielsen. Given these figures it’s easy to understand why McGrath’s line has been so successful.
"It has always been my dream to create an iconic beauty brand that goes beyond the usual limitations, that lives outside the parameters of what is expected," McGrath said in a press release. The company also announced their top-selling products will be added into 36 more Sephora stores, whose parent company (LVMH -0.92%) is sure to benefit from this expansion.
Since launching her line, McGrath's products have become available at 54 Sephora stores. Recently, McGrath Labs received a $60 million deal from investment firm Eurazeo Brands which allowed the company to pass $1 billion in value. This news came out during the peak of the controversy surrounding Forbes labelling Kylie Jenner as a “self made billionaire.” Currently Jenner’s makeup line is valued at $800 million, quickly approaching McGrath’s milestone.
For McGrath and her billion dollar brand she told Fashionista "The next phase is to continue our incredible trajectory. The aim is to continue to provide them with more groundbreaking, straight-from-the-runway products and a makeup experience that they cannot get anywhere else.”
Situational Awareness: In recent years, Sephora has started partnering with more minority-owned makeup brands, such as Pat McGrath Labs, Fenty Beauty and Huda Beauty. The visibility of these brands has transformed the beauty community by offering a wide range of products, demanding diversity and inclusion from other popular makeup brands on the market to stay relevant. Not only is this representation contributing to the success of these brands, but it has increased sales of Sephora’s parent company, LVMH by 17%, according to Fast Company.
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