E.l.f. Beauty is making its biggest move yet — acquiring Hailey Bieber’s skincare brand Rhode in a deal worth up to $1 billion, signaling its aggressive push into the premium skincare market.
- The deal includes $800M in cash and stock, with a potential $200M earnout based on Rhode’s performance over the next three years.
- Despite the billion-dollar headline, Bieber herself is expected to receive about $200 million at the start — the rest depends on future results.
CEO Tarang Amin praised Rhode’s explosive growth: “In less than three years, they’ve gone from zero to $212 million in net sales with just 10 products. I didn’t think that was possible.”
Hailey Bieber will stay on as Chief Creative Officer, leading product innovation and marketing. The brand, co-founded with Michael and Lauren Ratner, was powered by Bieber’s global influence — earning the No. 1 spot in skincare earned media value in 2023.
Why This Deal Matters
- Rhode is DTC (direct-to-consumer) but will expand into Sephora in North America and the UK, broadening reach.
- E.l.f., known for affordable makeup and viral TikTok success, wants to tap into higher-income consumers with Rhode’s premium offerings (average price: ~$28).
- This acquisition follows E.l.f.’s $355M purchase of Naturium in 2023 — signaling a serious bid to dominate skincare.
- E.l.f. funded $600M of the deal through debt, despite high interest rates and China tariffs threatening margins (it sources 75% of goods from China).
E.l.f. Earnings Beat
E.l.f. also reported strong Q4 results:
- EPS: $0.78 adj. (vs. $0.72 est.)
- Revenue: $333M (vs. $328M est.)
- Net income: $28.3M, up from $14.5M YoY
- Sales: Up 4% YoY to $332.7M
But the company is not giving 2026 guidance, citing uncertainty from Trump’s shifting China tariff policies, which could significantly impact costs.
Goldman Sachs called the Rhode acquisition “a strategic positive,” giving E.l.f. prestige skincare exposure and a new customer segment. It’s a bet that Gen Z will keep spending on skincare — even in a slowdown.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Related:
US trade court blocks Trump’s sweeping tariffs. What happens now?
Trump orders US chip designers to stop selling to China
US Consumer Confidence Soars in May Amid Hopes for Trade Peace
Tesla Sales Crash 49% in Europe Despite EV Boom
Trump Threatens 25% Tariff on Apple as Foxconn Invests $1.5B in India
Trump Media Slams $3B Crypto Report as “Fake News”
China has quietly relaxed export restrictions on rare earth elements
Hedge funds are shorting stocks again, boosting leverage to new record
Trump says he’ll delay a threatened 50% tariff on the European Union until July
Angry Elon Is Back — And He’s Betting Big on Driverless Teslas and AI
