From Yahoo Finance: 2025-05-30 06:30:00

Haley Bieber’s beauty brand, Rhode, is acquired by E.l.f. Beauty in a $1 billion deal, causing E.l.f.’s stock to soar. With $212 million in net sales last year and a growing customer base, Rhode is a hot commodity. Sephora plans to carry Rhode products in stores in the US, UK, and Canada.

E.l.f.’s acquisition of Rhode marks a strategic move to target a wider market beyond budget buyers. While E.l.f. is known for affordable “dupes,” Rhode offers premium products at higher price points. By acquiring Rhode, E.l.f. aims to appeal to customers looking to either save money or splurge on luxury beauty items.

E.l.f. Beauty faces cooling demand in the beauty market and plans to raise prices to offset tariffs in China. The acquisition of Rhode comes at a crucial time as E.l.f. looks to navigate economic challenges. Smaller brands like Rhode are showcasing resilience amidst industry changes and tariffs.

The acquisition of Rhode by E.l.f. Beauty could spark a new wave of deals in the beauty sector. Celeb-backed brands like Rare Beauty and Glossier may become attractive targets for acquisition or IPOs. Leveraging brands with established fan bases could offer protection and growth opportunities for major beauty companies.

Read more: E.l.f. Soars After $1 Billion Pow(d)er Move to buy Hailey Bieber’s Rhode