Elf Beauty logs 28% annual sales surge, acquires Hailey Bieber's Rhode beauty brand
Annual net income was down to $112.1 million for fiscal 2025, slipping from $127.7 million in the prior-year period, according to Elf Beauty.
'In this dynamic environment, we continue to deliver industry-leading results. In fiscal 2025, we grew net sales 28%, gained 190 basis points of market share in the U.S. and continued our international expansion strategy,' said Tarang Amin, Elf Beauty's chairman and chief executive officer, adding the company is not providing a fiscal 2026 financial outlook at this time, due to the recent tariff uncertainty.
In a separate release on Wednesday, Elf Beauty said it has snapped up Gen Z-focused celebrity brand Rhode for $800 million, in a combination of cash and stock, and an additional potential earnout consideration of $200 million, subject to certain performance-related conditions.
The Rhode deal signals a shift in strategy for the budget beauty retailer as it looks to the prestige beauty market to combat weaker demand from its mass market cosmetics.
'We believe we have the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of Rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands," added Amin, in a release.
Bieber will continue in her role as founder of Rhode and will also act as a strategic advisor after the deal closes in the second quarter of fiscal 2026.
"Elf Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally," said the model-turned-entrepreneur, as part of the announcement.
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