E.l.f. Beauty Bets Big on Rhode in $1 Billion Play for Prestige and Gen Z Appeal
May/29/2025
E.l.f. Beauty has made a move to broaden its footprint in prestige skincare and deepen its hold on Gen Z consumers by acquiring Hailey Bieber’s Rhode for up to $1 billion, a deal comprising $800 million upfront and an additional $200 million contingent on future performance. Announced alongside E.l.f.’s 25th consecutive quarter of sales growth, the acquisition reflects the company’s M&A discipline and strategic alignment: Rhode, with just 10 products, has generated $212 million in sales over the past year, driven by Bieber’s influencer prowess and direct-to-consumer model. Under the deal, Bieber will remain Rhode’s chief creative officer, and the brand will expand to Sephora and international markets by year-end. As E.l.f. scales its skincare ecosystem, which already includes E.l.f. Skin and Naturium, Rhode adds cachet and entry to the higher-margin prestige tier. With Gen Z consumers increasingly dictating beauty trends — favoring cruelty-free, digitally native, and fashion-forward brands — E.l.f.’s strategic pivot positions it to continue leading the cosmetics market in the U.S. In a nod to inflationary pressures, the company plans a modest $1 price increase across all SKUs globally starting August 1. The following tag cloud illustrates emerging trends in skincare-related US trademark naming for 2025.
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