Latest news with #ELF
Yahoo
2 days 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
Yahoo
2 days ago
- Business
- Yahoo
Truist Increased the Price Target for e.l.f. Beauty, Inc. (ELF)
Truist Securities reiterated its Buy rating on e.l.f. Beauty, Inc. (NYSE:ELF) shares, raising its price objective from $75 to $125. A close up of the lip and eye products from the company on a model in a fashion and beauty shoot. The revision comes after the company's improved financial outlook and solid Q4 earnings performance. After revising its FY26 projections, Truist now forecasts $1.575 billion in sales and $332 million in EBITDA, up from the earlier projections of $1.466 billion and $327 million. Furthermore, the firm's confidence in e.l.f. Beauty, Inc. (NYSE:ELF)'s sustained development trajectory was reflected in the raised FY27 expectations. After Q4 earnings above market projections, the latest estimates indicate an upward revision in long-term expectations. Recently, e.l.f. Beauty, Inc. (NYSE:ELF) strengthened its portfolio by paying $1 billion to purchase Rhode, a celebrity beauty brand. The company has generated strong sentiment due to its industry-leading gross margins of 71.24%, $6.30 billion market capitalization, and 28.28% revenue growth over the last 12 months. Targets have also been raised by other firms, such as TD Cowen, Jefferies, Morgan Stanley, and Piper Sandler, with values ranging from $105 to $130. Analysts view e.l.f. Beauty, Inc. (NYSE:ELF)'s tactical moves and fundamentals as drivers for further rise, notwithstanding the macro uncertainty of the near future. While we acknowledge the potential of ELF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ELF and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None.
Business Insider
2 days ago
- Business
- Business Insider
$18 lip gloss and 'glazed donut' skin: How Rhode made its mark on the beauty world in 3 years
Hailey Bieber's Rhode was just sold to ELF Beauty for a billion dollars. Rhode, a skincare-makeup hybrid brand, sells just 10 products in minimalist packaging. From $18 affordable luxury products to a strong social media presence, here's what the brand did right. In 2022, model Hailey Bieber launched a skincare brand with just a handful of products encased in unassuming packaging. Three years on, it's being acquired by ELF Beauty for a billion dollars. The brand, known for its hybrid products that work as both skincare and makeup, sells only 10 products. But it's moving fast in the market — ELF's CEO, Tarang Amin, said in the company's earnings call on Wednesday that Rhode achieved sales of $212 million in the last 12 months. Bieber announced the acquisition in a Wednesday post on Instagram. View this post on Instagram A post shared by Hailey Rhode Bieber (@haileybieber) "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 said in her post. Amin said Bieber would continue to run the show after the acquisition as the brand's chief creative officer. "On the Rhode side, Hailey is a visionary and her unique perspective, tenacity, and passion to reinvent beauty come through in every aspect of the business," Amin said. From creating $18 affordable luxury products to building a robust social media presence, here's what the brand did right. Representatives for Rhode did not respond to a request for comment from Business Insider. Leaning into Hailey Bieber's "It Girl" aesthetic It's hard to separate Bieber's brand from her — she's one of Gen Z's iconic "It Girls." "Rhode's strong resonance with Gen Z and Gen Alpha—thanks to Hailey Bieber's 'it-girl' influence and viral social media presence—strengthens ELF's connection to younger consumers," said Charlie Scott, the founder of Singapore-based brand consultancy Tangible. Her influence also extends to the millennial space, in part because of her high-profile relationship with 2010s pop star Justin Bieber. "She's married to Justin Bieber, so she has this weird crossover appeal where she's both a model and influencer and connected to millennial nostalgia," said Antonio Fernandez, the CEO of Thailand-based marketing agency Relevant Audience. But it isn't just who she's married to — she's a trendsetter in her own right. Bieber coined the "glazed donut skin" trend in 2021 — referring to the skincare routine that helps make one's appear healthy, glossy and dewy. "My standard when I go to bed at night is that if I'm not getting into bed looking like a glazed donut, then I'm not doing the right thing," she said in a YouTube video on her channel in 2021. Fernandez said Bieber's social media game has been a difference-maker — particularly in how she's turned skincare routines into viral content pieces that move product. The "glazed donut" trend, for instance, has since inspired "glazed donut nails" on TikTok and the viral $20 Strawberry Skin Glaze smoothie at Erewhon. Not trying to be everything to everyone And the packaging matters, too. Scott said Rhode's brand language of minimalist packaging, soft lighting, and the dewy "glazed donut" look reinforces Rhode's identity and sets it apart from more maximalist, or color-focused brands. Rhode sells only 10 products, the bulk of which are skincare-focused. These include a cleanser, lip balms, blush, moisturizer, and others. The product packaging is as restrained as the product selection, with neutral grays, beiges, and browns. "This minimalism, paired with affordable pricing and ingredient transparency, directly tapped into the 'skinimalism' and 'Clean Girl' trends popular with Gen Z and young millennials," Scott added. Teng Chan Leong, the CEO of Skribble, a Malaysia-based marketing agency, said Rhode had distinguished itself by not "trying to be everything to everyone." "Instead, it's nailing one category with cultural relevance and quietly building brand equity," Teng said. Affordable prices On another front, Rhode's products also land in the sweet spot of affordable luxe, the branding experts told BI. Teng said Rhode offers high-performing skincare at accessible price points. Its most popular item, the Peptide Lip Tint, retails for $18, while its Pineapple Refresh cleanser goes for $30. "In an age of rising living costs, Rhode's affordable-yet-chic positioning gives it a clear advantage," Teng said. "It's that 'affordable luxury sweet spot that Gen Z loves — they want to feel bougie without breaking the bank," Fernandez, the marketing expert, said. "Rhode hit the perfect price point - expensive enough to feel premium but not so expensive that regular people can't afford it," Fernandez added. ELF acquisition The ELF takeover could be mutually beneficial to both brands — expanding ELF's offerings while helping Rhode reach a larger consumer base. "ELF cosmetics is about $6.50 in its core entry price point, Rhode, on average, is in the high 20s, so I'd say it does bring us a different consumer set to the company overall, but the same approach in terms of how we engage and entertain them," Amin told CNBC in an interview. Scott said Rhode now has access to ELF's retail partnerships, including Walmart, Target, and Ulta. "This takeover could help Rhode transition beyond its current direct-to-consumer and limited pop-up model, leveraging ELF's extensive distribution network and retail partnerships to reach a broader, global audience," he said. For ELF, the Rhode takeover means an entry into the prestige skincare category, said Teng. "They're buying credibility with Gen Z and a way into the premium market. ELF is known for cheap drugstore makeup, but Rhode sits in that $20-30 sweet spot that screams 'affordable luxury,'" said Fernandez. "The $1 billion price tag honestly makes sense when you look at how fast they grew and how culturally relevant they became. ELF is basically buying a cultural moment and betting it can turn into a lasting brand," Fernandez added.
Yahoo
3 days ago
- Business
- Yahoo
Why e.l.f. Beauty (ELF) Stock Is Trading Up Today
Shares of cosmetics company e.l.f. Beauty (NYSE:ELF) jumped 24% in the afternoon session after the company reported impressive first quarter 2025 (fiscal Q4) results which blew past analysts' sales, earnings, and operating profit estimates. What really stood out was the acquisition of Hailey Bieber's skincare brand, Rhode, for $1 billion (in cash and stock), adding a fast-growing, culturally resonant brand to the portfolio. At the time of the acquisition, Rhode had $212 million in net sales, generated directly from consumers, with only 10 products, and had demonstrated exceptional consumer traction, particularly among social media-driven audiences on platforms like TikTok. On the other hand, ELF pulled its full-year guidance due to tariff uncertainty. Overall, we think this was a good quarter. Is now the time to buy e.l.f. Beauty? Access our full analysis report here, it's free. e.l.f. Beauty's shares are extremely volatile and have had 51 moves greater than 5% over the last year. But moves this big are rare even for e.l.f. Beauty and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 2 days ago when the stock gained 6.2% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. e.l.f. Beauty is down 9.1% since the beginning of the year, and at $111.80 per share, it is trading 48.7% below its 52-week high of $218 from June 2024. Investors who bought $1,000 worth of e.l.f. Beauty's shares 5 years ago would now be looking at an investment worth $6,523. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
e.l.f. Beauty (ELF) Buys rhode for $1 billion, Eyes Premium Market Growth
On Wednesday, May 28, e.l.f. Beauty Inc. (NYSE:ELF) announced the acquisition of makeup and skincare brand rhode for approximately $1.0 billion. The deal comprises $600 million in cash and $200 million in e.l.f. Beauty common stock, along with a potential performance-based earnout of $200 million, contingent on the brand's growth over a three-year post-closing period. The rhode brand, launched in 2022 by model Hailey Bieber, has gained significant popularity among Gen-Z and millennials. The brand sells skincare products, pocket blushes, peptide lip treatments, and other products, and reported $212 million in revenue for fiscal year 2025 (ending in March). Sorbis/ For e.l.f. Beauty, which traditionally focuses on affordable, mass-market cosmetics, the acquisition marks a strategic move to expand into higher-end, premium products. In the announcement, e.l.f. Chairman and CEO Tarang Amin described rhode as a like-minded disruptor, stating: 'rhode further diversifies our 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 to create a different kind of company. rhode is a beautiful brand that we believe is ready for rocketship growth.' e.l.f. Beauty also reported Q4 FY2025 results, with net sales of $332.6 million—up 4% year over year. Earnings per share (EPS) stood at $0.78, beating market expectations of $0.72. However, the company is not providing guidance for FY2026 due to the impact of tariffs. While we acknowledge the potential of ELF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ELF and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
