Pat McGrath Labs and Louis Vuitton: What This Power Move Means for Beauty
If you thought 2025 was just another year in the beauty industry, think again. Louis Vuitton has officially tapped legendary makeup artist Pat McGrath as the creative director of its new cosmetics line, La Beauté Louis Vuitton (Source: Reuters). This isn’t just another high-fashion beauty collaboration—it’s a significant business move that could have lasting effects on Louis Vuitton’s beauty ambitions and the future of Pat McGrath Labs. So, what does this mean for the beauty industry, and more importantly, what’s next for Pat McGrath Labs?
Louis Vuitton’s Luxury Beauty Play
Louis Vuitton has long dominated luxury fashion but was noticeably absent from the high-end beauty space. Beauty is a high-margin, high-growth category for luxury brands (think Chanel and Dior’s billion-dollar beauty divisions), and it was only a matter of time before Louis Vuitton stepped in. But instead of launching a predictable product line, they made a statement by bringing in one of the most influential names in makeup—Dame Pat McGrath.
This move signals two things:
Louis Vuitton is serious about beauty. This isn’t just another designer lipstick launch—it’s a full-scale luxury beauty brand being built from the ground up.
Pat McGrath is more than a makeup artist—she’s a business force. Louis Vuitton’s decision to put her at the helm shows they’re looking for a visionary who can set trends and create instant bestsellers.
What This Means for Pat McGrath Labs
McGrath’s new role is exciting, but it raises significant questions about the future of Pat McGrath Labs. The brand, launched in 2015, skyrocketed to fame and reached a $1 billion valuation in 2018 after securing a $60 million investment from Eurazeo Brands (source: Harper’s Bazaar). However, recent reports suggest its valuation has declined significantly, and the brand has faced executive turnover and multiple rounds of layoffs (source: Puck News).
Could This Lead to a Change in Ownership?
Louis Vuitton’s move into cosmetics begs the question: Could Pat McGrath Labs be headed toward an ownership shift?
Investment History: In 2018, Eurazeo Brands invested $60 million, valuing the brand at $1 billion. By 2021, Eurazeo exited, and Sienna Investment Managers acquired a stake worth approximately €168 million (around $183 million) (source: Business of Fashion).
McGrath’s Ownership Stake: While McGrath remains the face of the brand, the exact details of her current ownership percentage are undisclosed. However, given that previous investors held minority stakes, she likely still has majority control.
Financial Performance: The brand’s estimated annual revenue is $15 million, significantly lower than its early growth projections. With declining valuation and workforce reductions, Pat McGrath Labs might need new investors or even acquisition talks to sustain growth (Growjo).
What Comes Next?
A Potential Sale to LVMH? Given LVMH’s dominance in luxury beauty (with brands like Fenty Beauty and Guerlain), an acquisition of Pat McGrath Labs would make strategic sense.
New Investors? If McGrath wants to maintain control, she may seek private equity or outside investment to stabilize and expand the brand.
Brand Independence? Alternatively, she could use her high-profile role at Louis Vuitton to revamp Pat McGrath Labs and reposition it as a cutting-edge, high-performance beauty brand.
Branding and Marketing Considerations
As someone with over 20 years in marketing communications and branding, I see some branding and marketing challenges that both Louis Vuitton and Pat McGrath Labs should be mindful of:
Brand Dilution: Pat McGrath Labs is known for edgy, high-impact beauty, while Louis Vuitton’s aesthetic is timeless and ultra-luxury. If the lines blur, McGrath’s brand could lose its distinct edge.
Consumer Confusion: Customers may not know where to invest if both brands release similar products—like a luxury lipstick line. A strong marketing strategy will be needed to keep them separate.
Resource Strain: McGrath will now be splitting time between two major brands. Who is driving innovation at Pat McGrath Labs while she’s deep in Louis Vuitton’s beauty business? Ensuring strong leadership and a clear marketing roadmap is key.
Messaging and Storytelling: Louis Vuitton’s entry into beauty is a huge deal, but it will need a strong brand narrative to differentiate itself. Simply slapping a logo on makeup won’t cut it—heritage, exclusivity, and innovation must be part of the story.
The Bottom Line
This isn’t just another beauty launch—it’s a shift in the luxury beauty landscape. Louis Vuitton entering cosmetics with Pat McGrath at the helm is a powerful industry move that could redefine the category. But at the same time, the next few years will be critical for Pat McGrath Labs as it balances growth, competition, and potential ownership shifts.
Will Pat McGrath Labs thrive under the spotlight, or are we looking at a significant industry shake-up with a sale or restructuring? Either way, this is a beauty business story we’ll be watching closely.
What do you think about this move? Let’s discuss this in the comments!
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