Huda Kattan can contour. And Huda Kattan can connect.
The beauty blogger turned makeup entrepreneur has a social media following so vast it has provoked the question of whether she is the world's most influential beauty blogger.
And now investors ask: what is the financial value of that influence?
The Dubai-based beauty maven is shopping a small minority stake in her company — Huda Beauty — with the help of investment bank Financo, sources familiar with the situation said. The business has roughly $100 million in sales and is looking for a financial partner to help continue its growth, the sources added.
A valuation of the company could not be immediately determined.
The sources requested anonymity because the process is confidential. Financo declined to comment. Kattan wasn't immediately available to comment.
The stake sale comes as the cosmetic industry undergoes deep change. Shoppers no longer choose their makeup from gussied-up ladies at the mall. In fact, they barely go the mall at all. Instead they are buying online and at the recommendations of the personalities that checker YouTube, Instagram and other social media platforms.
Kylie Jenner sends a tweet and her lip-kit sells out. Because consumers can buy directly from her website, the need for any form of store is diminished.
Shares of Ulta, once viewed as the last man standing in retail, have declined 34 percent since June despite strong earnings and likely due to fear of e-commerce.
In response, retailers like Ulta and Sephora are launching online exclusives to draw shoppers to their webpages. Cosmetic giants like Estee Lauder are pouring money into their brand websites, looking for a venue to communicate with — and sell directly to — customers.
They're also making acquisitions: L'Oreal acquired social media darling NYX cosmetics for $500 million and Estee Lauder acquired Too Faced for $1.45 billion.
But Too Faced and NYX combined don't have the 22 million Instagram followers that Kattan does. To put Kattan's reach in perspective, she also has more Instagram followers than Leonardo Dicaprio (20.1 million), Louis Vuitton (19.5 million) and Kris Jenner (18 million).