Latest news with #E.l.f.Beauty
Yahoo
7 hours ago
- Business
- Yahoo
Mandy on $1B Dollar to buy Hailey Bieber's Rhode Brand
E.l.f. Beauty announcing it will buy Hailey Bieber's brand, Rhode for $1 billion dollars. The move gives the cosmetics retailer access to a product line that has become hugely popular among Gen Z and millennials. E.l.f Beauty CFO Mandy Fields joined Bloomberg Open Interest to talk about the deal. Sign in to access your portfolio
Yahoo
15 hours ago
- Business
- Yahoo
Why e.l.f. Beauty's CFO sees $1B Rhode acquisition as a strategic innovation move
Good morning. During uncertain times, research shows it's more effective for companies to pursue emerging growth opportunities than to simply protect the status quo. For e.l.f. Beauty, that includes making bold moves to drive growth through M&A. The multinational beauty company announced this week that it will acquire model and entrepreneur Hailey Bieber's Rhode lifestyle brand for about $1 billion, paying $800 million in cash and stock at closing, plus an additional potential earnout of $200 million based on Rhode's growth over the next three years. In my conversation with e.l.f. Beauty CFO Mandy Fields, she traced the company's focus on innovation during uncertain times back to the pandemic. While many companies pulled back on marketing spend and paused innovation, 'we leaned into all of those things,' said Fields who joined the company as CFO in 2019. That commitment continues to this day, she said. 'Our strategic imperative is to build a different kind of company with brands that disrupt norms, shape culture, and connect communities,' she explained. 'And when we found Rhode, it checked the boxes across all of those aspects. Despite what's going on around us, we believe this is the right strategic move for e.l.f.' Bieber, who is married to pop star Justin Bieber and the daughter of actor Stephen Baldwin, launched Rhode in 2022. In the last 12 months, Rhode generated $212 million in net sales. The brand has a huge social media presence, including Bieber's personal Instagram account, which has 54 million followers. Fields also noted that e.l.f. Beauty has a disciplined approach to M&A. The company acquired the skin-care brand Naturium in 2023 for $355 million, doubling e.l.f. Beauty's presence in skin care, she said. On Wednesday E.l.f. Beauty reported revenue of $332.6 million for the quarter that ended March 31, a 4% increase that beat analysts' expectations of 1.6% year-over-year growth. 'We saw growth across the board—geographically in both the U.S. and international markets, and in both retail and digital channels,' Fields said. It was the 25th consecutive quarter of net sales growth and market share gains, she said. For the full year, e.l.f. Beauty delivered 28% sales growth and a 26% increase in adjusted EBITDA. The company did not provide a fiscal 2026 financial outlook due to a wide range of possible outcomes from a tariff perspective. 'We just want to see more certainty there,' Fields said. The company estimates the impact on production costs due to the current tariff rate would be approximately $50 million annually. The tariff mitigation plan focuses on pricing, supply chain optimization, and business diversification, Fields explained. E.l.f. Beauty announced last week plans to increase the cost of its products globally by $1 due to tariffs, effective August 1. As a high-quality, value brand, even with that price increase, 75% of its products will still be below $10, Fields said. This is the company's third price increase in its 21 years in business. E.l.f. Beauty is a favorite brand among Gen Z and is gaining popularity with millennials and Gen X. 'I'm so proud to be a part of a company where we are transparent with our community on what to expect,' Fields said. Regarding the price increase, the 'overwhelming response has been quite positive from our community,' e.l.f. Beauty CEO Tarang Amin told Fortune in an interview. 'This is exactly what we're facing, and they understand,' Amin said. About 75% of e.l.f. Beauty's global production comes from China, down from 100% in 2019, Fields said. The company is working with existing partners to establish new locations outside China and seeking new suppliers in other regions, she explained. Additionally, 19% of the company's sales now come from outside the U.S., providing further insulation from tariff risks, she staying transparent and focused on innovation, e.l.f. Beauty shows it can build trust and seize new opportunities—even in uncertain a good weekend. See you on Monday. Sheryl This story was originally featured on
The South African
20 hours ago
- Business
- The South African
Hailey Bieber rockets to billionaire status with Rhode
Hailey Bieber has just shaken up the beauty world—and her bank account in a move that's sending shockwaves. Bieber's skincare brand, Rhode, has been snapped up by cosmetics powerhouse E.l.f. Beauty for a jaw-dropping R18 billion. Hailey Bieber, only three years into her beauty business journey, isn't stepping aside. Instead, she's stepping up. 'From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day,' Bieber declared, according to Harper's Bazaar . 'Just three years into this journey, our partnership with E.l.f. Beauty marks an incredible opportunity to elevate. We can accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally'. E.l.f. Beauty will pay R14.4 billion at closing, a mix of cash and stock. There's also a sweetener: an extra R3.6 billion could be paid out if Rhode continues to grow over the next three years. Rhode's meteoric rise is nothing short of spectacular. The brand, named after Hailey's middle name, launched in 2022. It quickly became a social media sensation, especially on TikTok, with its peptide lip treatments and 'glazing' products. In the last year alone, Rhode raked in over R3.8 billion in net sales. Hailey Bieber isn't going anywhere, as she'll stay on as Chief Creative Officer and Head of Innovation, guiding Rhode's next chapter. Her co-founders, Michael D. Ratner and Lauren Ratner, will also keep their hands on the wheel. 'We can't wait to bring Rhode to more faces, places, and spaces,' Bieber said, hinting at global ambitions that could soon see Rhode's products on South African shelves. E.l.f. Beauty's CEO, Tarang Amin, is just as excited as Rhode further diversify their portfolio with a fast-growing brand that makes the best of prestige accessible. We are excited by Rhode's ability to break beauty barriers, fully aligning with E.l.f. Beauty's vision is to create a different kind of company. Rhode is a beautiful brand that we believe is ready for rocketship growth,' he said. This deal is a sign of the growing power of social media-driven brands and the global appetite for innovative skincare. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Yahoo
21 hours ago
- Business
- Yahoo
E.l.f. Beauty to acquire Rhode, Hailey Bieber's skincare brand, in $1 billion deal
E.l.f. Beauty (NYSE: ELF) announced on Wednesday that it has signed a definitive agreement to acquire Rhode, the beauty brand founded by Hailey Rhode Bieber, alongside its Q4 earnings for the fiscal quarter ending March 2025. (Shares of ELF closed down over 1% Wednesday afternoon before the news was announced.) Spicy AI-generated TACO memes are taking over social media because 'Trump always chickens out' Lego's first book nook is an addictively interactive diorama Forget quiet quitting: I'm using 'loud living' to redefine workplace boundaries 'E.l.f. Beauty found a like-minded disruptor in Rhode,' said E.l.f. chairman and CEO Tarang Amin. 'Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.' According to a press release sent to Fast Company, the deal is built on 'both brands' shared focus on disruption and product innovation, setting the stage for transformative global expansion,' and is in line with E.l.f. Beauty's vision 'to create a different kind of beauty company by building brands that disrupt norms, shape culture and connect communities.' Bieber will step into an expanded role as Rhode's chief creative officer and head of innovation. 'I look forward to leading the brand into this exciting new chapter of possibilities alongside my co-founders Michael D. Ratner and Lauren Ratner, who have helped bring my vision to life from the start,' Bieber said in a statement. Rhode plans to launch its first physical in-store partnership with retailer Sephora throughout North America and the U.K. before the end of the year, and has doubled its consumer base over the past year, driving a total of $212 million in net sales in the 12 months that ended March 31, 2025. The $1 billion deal is comprised of $800 million of consideration payable at closing in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year time frame. E.l.f. Beauty previously cut its full-year guidance when it last reported earnings for Q3, after seeing a 36% drop in profits and 'softer than expected' sales trends in January, according to CNBC. In its fiscal third quarter ending December 31, 2024, the cosmetics company reported revenue of $355 million versus $330 million expected, and EPS, or earnings per share, of 74 cents, adjusted from 75 cents. E.l.f. Beauty has a market cap of $5.10 billion as of market close Wednesday. The Oakland, California-based skincare and cosmetic products company was founded by Joseph Shamah and Scott Vincent Borba in 2004. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
a day ago
- Business
- San Francisco Chronicle
Oakland-based cosmetics company buys Hailey Bieber's Rhode brand for $1 billion
Oakland-based E.l.f. Beauty has purchased Hailey Bieber's skin care and makeup brand Rhode for $1 billion. Bieber, a model, entrepreneur and the wife of pop singer Justin Bieber, started the casual beauty brand in 2022. 'I always had big dreams for the company, and the most important thing to me is to keep bringing (Rhode) to more spaces, places, and faces globally,' the social media mogul wrote in an Instagram post Wednesday, May 28, while announcing the deal. 'I found a like-minded disruptor with a vision to be a different kind of company that believes in big ideas and innovation in the same way that I do and will help us continue to grow the brand.' Bieber will now step into a larger role at the company, serving as its chief creative officer and head of innovation, in addition to acting as a strategic adviser to the combined companies. The acquisition is made up of $800 million in cash and stock and an additional $200 million payout dependent on Rhode's growth and performance over the next three years. E.l.f., created in 2004, is headquartered on 10th Street in Downtown Oakland, and its purchase of Rhode marks the company's largest to date. The East Bay company previously acquired skin care brand Naturium in 2023 for $355 million. E.l.f. reportedly praised Rhode's 'powerful engagement model' during its earnings call following the announcement on Wednesday, according to CNN, with CEO Tarang Amin noting that 'One of the things we really like about Rhode is just how tight the product assortment is.' Bieber launched Rhode, which is her middle name, as a skin care line but has since expanded to include an array of makeup products including blushes, lip balms and lip liners. There are currently 10 products available. Rhode made $212 million in net sales in its last fiscal year, which ended in March, gaining popularity among younger consumers in particular. Previously only available online and during rare in-person pop-ups, the brand announced earlier this year that products would be hitting the shelves of Sephora in North America and the United Kingdom soon. News of the acquisition comes as her husband is rumored to be on the verge of 'financial collapse' after having to sell his music catalog in December 2022, according to a TMZ documentary, 'TMZ Investigates: What Happened to Justin Bieber?' Available on Hulu, the film alleges that Bieber's financial troubles began when he was plunged into debt for pulling out of his 'Justice' world tour in 2022.
