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NBC News
an hour ago
- Business
- NBC News
E.l.f. Beauty to acquire Hailey Bieber skincare brand Rhode in up to $1 billion deal
E.l.f. Beauty announced on Wednesday plans to acquire Hailey Bieber's beauty brand Rhode in a deal worth up to $1 billion as the cosmetics company looks to expand further into skincare. The acquisition — E.l.f.'s biggest ever, according to FactSet — is comprised of $800 million in cash and stock, plus an additional potential $200 million payout based on Rhode's performance over the next three years. The deal is expected to close in the second quarter of the company's fiscal 2026 — or later this year. 'I've been in the consumer space 34 years, and I've been blown away by seeing this brand over time. In less than three years, they've gone from zero to $212 million in net sales, direct-to-consumer only, with only 10 products. I didn't think that was possible,' CEO Tarang Amin told CNBC in an interview. 'So that level of disruption definitely caught our attention.' In a news release, Bieber said she's excited to partner with E.l.f. to bring her brand to 'more faces, places, and spaces.' 'From day one, my vision for rhode has been to make essential skin care and hybrid makeup you can use every day,' said Bieber. 'Just three years into this journey, our partnership with e.l.f. 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.' Launched in 2022, Rhode has more than doubled its customer base over the past year and generated $212 million in revenue in the 12 months ended March 31. The company's growth has primarily come through its website, but it plans to launch in Sephora stores throughout North America and the U.K. before the end of the year. As part of the acquisition, Bieber will serve as Rhode's chief creative officer and head of innovation, overseeing creative, product innovation and marketing. The brand was launched alongside two co-founders, Michael and Lauren Ratner, but it was Bieber's influence and name that turned it into a billion-dollar brand. Under her direction, Rhode last year became the No. 1 skincare brand in earned media value — or exposure through methods other than paid advertising — with 367% year-over-year growth. Rhode is a solid match for E.l.f., which has seen growth skyrocket in recent years in large part to its digital prowess. The company has legions of online fans and is known for TikTok marketing that feels more natural to consumers. The company is also looking to dig deeper into skincare, which has become more popular with all age groups, particularly E.l.f's younger, core consumer. In 2023, it acquired skincare brand Naturium for $355 million. Its acquisition of Rhode will allow it to build on its skincare growth and reach a higher income consumer. 'E.l.f. 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,' said Amin. E.l.f. beats earnings estimates E.l.f. made the announcement as it posted fiscal fourth quarter results, which beat Wall Street's expectations on the top and bottom lines. Here's how the beauty retailer performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG: Earnings per share: 78 cents adjusted vs. 72 cents expected Revenue: $333 million vs. $328 million expected The company's reported net income for the three-month period that ended March 31 was $28.3 million, or 49 cents per share, compared with $14.5 million, or 25 cents per share, a year earlier. Sales rose to $332.7 million, up about 4% from $321.1 million. E.l.f.'s sales have increased rapidly in recent years, but investors have grown concerned as that growth started to slow and the threat of tariffs began weighing on its business. The company sources about 75% of its products from China, which currently faces a 30% duty on exports to the U.S. Last week, it announced plans to raise prices by $1 to offset higher costs from tariffs. While U.S. duties on Chinese imports are 30% now, that could change as President Donald Trump negotiates with Beijing. As a result, E.l.f. said it isn't providing a fiscal 2026 outlook 'due to the wide range of potential outcomes related to tariffs.' Amin said E.l.f. paid more than 145% in duties before Trump agreed to slash the levies on Chinese goods, but those costs didn't come through during the quarter and will show up when the company reports its fiscal 2026 first-quarter earnings.
CNBC
an hour ago
- Business
- CNBC
E.l.f. Beauty to acquire Hailey Bieber skincare brand Rhode in up to $1 billion deal
E.l.f. Beauty announced on Wednesday plans to acquire Hailey Bieber's beauty brand Rhode in a deal worth up to $1 billion as the cosmetics company looks to expand further into skincare. The acquisition – E.l.f.'s biggest ever, according to FactSet – is comprised of $800 million in cash and stock, plus an additional potential $200 million payout based on Rhode's performance over the next three years. The deal is expected to close in the second quarter of the company's fiscal 2026 — or later this year. "I've been in the consumer space 34 years, and I've been blown away by seeing this brand over time. In less than three years, they've gone from zero to $212 million in net sales, direct-to-consumer only, with only 10 products. I didn't think that was possible," CEO Tarang Amin told CNBC in an interview. "So that level of disruption definitely caught our attention." In a news release, Bieber said she's excited to partner with E.l.f. to bring her brand to "more faces, places, and spaces." "From day one, my vision for rhode has been to make essential skin care and hybrid makeup you can use every day," said Bieber. "Just three years into this journey, our partnership with e.l.f. 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." Launched in 2022, Rhode has more than doubled its customer base over the past year and generated $212 million in revenue in the 12 months ended March 31. The company's growth has primarily come through its website, but it plans to launch in Sephora stores throughout North America and the U.K. before the end of the year. As part of the acquisition, Bieber will serve as Rhode's chief creative officer and head of innovation, overseeing creative, product innovation and marketing. The brand was launched alongside two co-founders, Michael and Lauren Ratner, but it was Bieber's influence and name that turned it into a billion-dollar brand. Under her direction, Rhode last year became the No. 1 skincare brand in earned media value — or exposure through methods other than paid advertising — with 367% year-over-year growth. Rhode is a solid match for E.l.f., which has seen growth skyrocket in recent years in large part to its digital prowess. The company has legions of online fans and is known for TikTok marketing that feels more natural to consumers. The company is also looking to dig deeper into skincare, which has become more popular with all age groups, particularly E.l.f's younger, core consumer. In 2023, it acquired skincare brand Naturium for $355 million. Its acquisition of Rhode will allow it to build on its skincare growth and reach a higher income consumer. "E.l.f. 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," said Amin. E.l.f. made the announcement as it posted fiscal fourth quarter results, which beat Wall Street's expectations on the top and bottom lines. Here's how the beauty retailer performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG: The company's reported net income for the three-month period that ended March 31 was $28.3 million, or 49 cents per share, compared with $14.5 million, or 25 cents per share, a year earlier. Sales rose to $332.7 million, up about 4% from $321.1 million. E.l.f.'s sales have increased rapidly in recent years, but investors have grown concerned as that growth started to slow and the threat of tariffs began weighing on its business. The company sources about 75% of its products from China, which currently faces a 30% duty on exports to the U.S. Last week, it announced plans to raise prices by $1 to offset higher costs from tariffs. While U.S. duties on Chinese imports are 30% now, that could change as President Donald Trump negotiates with Beijing. As a result, E.l.f. said it isn't providing a fiscal 2026 outlook "due to the wide range of potential outcomes related to tariffs." Amin said E.l.f. paid more than 145% in duties before Trump agreed to slash the levies on Chinese goods, but those costs didn't come through during the quarter and will show up when the company reports its fiscal 2026 first-quarter earnings.
Time of India
5 hours ago
- Business
- Time of India
Macy's beats Q1 estimates but lowers 2025 profit outlook amid tariff impact
Macy's Inc. reported a decline in first-quarter sales and profit on Wednesday, but still managed to surpass Wall Street expectations. The department store chain, however, revised its full-year profit forecast downward, citing more cautious consumer behaviour and the rising cost impact from US trade tariffs. Sales for the three months ended May 3 dropped to $4.79 billion from $5 billion a year ago, beating analysts' expectations of $4.42 billion, according to FactSet. Comparable sales, which include online and store performance, fell 2%. Macy's noted comparable sales growth at its higher-end Bloomingdale's and cosmetics chain Bluemercury, AP reported. Despite the overall decline, Macy's CEO Tony Spring said the company is carefully managing its pricing strategy amid the evolving tariff landscape. 'I think it's important to understand that we are not just broadly increasing price,' Spring said during a conference call. 'We're being incredibly surgical about the situation with tariffs.' Spring added that Macy's is diversifying its supply chain and adjusting orders where necessary. 'With the recent announcement of these tariffs, we've renegotiated orders with suppliers. We've canceled or delayed orders where the value proposition is just not where it needs to be,' he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Doutora: 'Um hábito simples antes de dormir me fez perder 1kg a cada 7 dias!' Revista Saúde Saiba Mais Undo The retailer disclosed that about 20% of its products came from China at the end of its last fiscal year, with private label brands sourcing 27% from China, down from 32% the year before. Macy's earned $38 million, or 13 cents per share, in the quarter, compared with $62 million, or 22 cents per share, a year earlier. Excluding one-time items, adjusted earnings came in at 16 cents per share — a penny above analyst estimates. Macy's maintained its 2025 annual sales guidance between $21 billion and $21.4 billion but lowered its adjusted earnings projection to a range of $1.60 to $2 per share, down from its earlier forecast of $2.05 to $2.25. Analysts had anticipated $1.91 per share in adjusted profit. Shares rose 1% Wednesday following the earnings release. Industry expert Neil Saunders of GlobalData noted Macy's quarter was relatively solid, especially as the company continues to shutter underperforming stores. 'The 2.0% dip in comparable sales is below market growth but is not entirely unexpected,' Saunders wrote. 'It is also, barring the robust holiday quarter, a somewhat better performance than Macy's delivered across most of the last fiscal year.' The company previously announced plans to close 66 stores, most of which occurred during the first quarter. Macy's joins a growing list of major US retailers navigating rising tariff-related costs and a cautious consumer base. American Eagle Outfitters and Ross Stores recently withdrew their financial outlooks, citing economic uncertainty. Target and Home Depot have also warned of pricing pressures due to tariffs. President Donald Trump's tariff policies have sparked industry-wide concern. While a recent agreement scaled back some import taxes on Chinese goods to 30% and delayed others, the administration continues to float threats of new levies, including a potential 50% tax on EU imports and a 25% tariff on smartphones unless domestically produced. Despite the pressures, Spring said Macy's remains committed to balancing competitive pricing and margin stability. 'We're making selective price increase in selective brands, selective categories, because we believe the value equation for the customer is still very relevant,' he said. 'So some of the impact on our gross margin this year is going to be around the tariffs, but we're also investing in getting market share because we really do believe as we get into the back half of the year, that price value dimension is going to be very critical. ' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Epoch Times
19 hours ago
- Automotive
- Epoch Times
AutoZone's Profit Margins Shrink, Company Remains Confident in Market-Share Growth
Shares of auto parts giant AutoZone Inc. fell on May 27 after the company reported higher fiscal third-quarter revenue and same-store sales, but a decline in profit margins. The company expressed confidence in future growth, noting its exposure to China has declined 'significantly.' According to its earnings During the company's pre-market conference call with Wall Street analysts, AutoZone CEO Phil Daniele downplayed the margin decline, saying the company will continue to prioritize its growth strategy of boosting same-store sales in its almost 7,500 locations in the United States, Mexico and Brazil. 'The top focus areas for this last quarter of 2025 remains growing share in our domestic commercial business and continuing our momentum in our international markets,' Daniele said. 'We understand we cannot take things for granted, [but] we must remain laser focused on customer service execution, and gaining share in every market in which we operate.' For the period ended May 10, AutoZone reported net income of $608 million, or $35.36 per share, down 6.6 percent from net income of $651.7 million, or $36.69 per share, in the third quarter of 2024. Total sales rose 5.4 percent to $4.46 billion, compared with $4.23 billion a year ago. The company's same-store sales increased by 3.2 percent compared with 0.9 percent a year ago. That improvement was primarily driven by a 5 percent increase at the company's 6,483 U.S. stores opened a year or more. However, same-store sales declined by 9.2 percent at the company's 949 locations in Mexico and Brazil. Related Stories 5/6/2025 5/2/2025 Excluding the impact of foreign currency exchange rates, the auto aftermarket retailer would have reported international same-stores sales of 8.1 percent, which Daniele highlighted during its conference call. AutoZone's results received mixed reviews on Wall Street, as it was expected to report third-quarter earnings of $37.07 per share on sales of $4.42 billion, according to FactSet. AutoZone's chief finance officer Jamere Jackson said the company's inventory increased 10.8 percent over the same period last year, driven by new store growth and same store sales growth initiatives. In highlighting the company's third-quarter performance, Daniele said AutoZone opened 54 new stores in the United States, 25 in Mexico, and five in Brazil, for a total of 84 net new stores. Altogether, the auto aftermarket reseller had 6,537 stores in the United States, 838 in Mexico, and 141 in Brazil, for a total store count of 7,516. With 58 store openings year-to-date, AutoZone expects to open around 100 total international locations in fiscal 2025. Going forward, Daniele said the company plans to invest $1.3 billion to expand its satellite store operations and larger mega-hubs locations, especially in the fast-growing international markets in Mexico and Brazil. 'We remain confident in our growth opportunities in this market. Today, [we] have 13 percent of our total store base outside of the [United States] and we expect this number to grow as we accelerate our international store openings,' Daniele said. In response to analyst questions about the impact of tariffs and U.S. trade policies with China, Daniele said the impact on AutoZone operations has been minimal. Although China is AutoZone's largest net importer of car parts, that percentage has declined 'significantly over the last couple of years' since the first round of tariffs in 2016. Ahead of the release of the earnings report, Bank of America analyst Robert Ohmes on May 21 upgraded AutoZone's upside after raising the company's stock from a 'neutral' to a 'buy.' He also bumped the auto parts retailer's price target from $3,900 to $4,800 per share, based on the company 'recession resilient history' in the face of potential prices increases from inflation and tariffs. Ohmes told The Epoch Times that he remains bullish on AutoZone as the auto parts aftermarket could benefit from the Trump administration's 25 percent auto tariffs, which could drive down new car sales. He also noted that AutoZone only has about 35 percent of its product sourced from China, significantly reducing its exposure to import levies. 'We see opportunities for a return to 2-4 percent industry inflation as auto parts retailers raise price to offset incremental tariff pressures,' Ohmes said via email. 'We also think the auto aftermarket could benefit from lower new car sales and higher used car pricing, as consumers may hold onto and repair existing vehicles.' Ohmes added that AutoZone is taking advantage of strategic investments to seize opportunities to gain market share on both the DIY retail and commercial pro sides of the auto parts business. He noted that the company could gain further market share after rival Advance Auto Parts (AAP) announced in late 2024 that it planned to 'AutoZone continues to invest in labor to maintain relationships with the up and down the street accounts to grow its commercial segment,' Ohmes said, adding that AutoZone and AAP stores are often located in close proximity. The company's shares fell 3.42 percent to close at $3,695.66 during the May 27 trading session. The stock has outperformed the broader market over the past 12 months, gaining 32.32 percent versus the S&P 500's return of 11.63 percent. Under the company's stock buyback program, AutoZone repurchased 70,000 shares of its common stock at an average price of $3,571 per share, for a total investment of $250.3 million. The company has an additional $1.1 billion to repurchase shares under the board's $5 billion authorization program.
Epoch Times
20 hours ago
- Business
- Epoch Times
Temu Parent's Profits Tumble Nearly 50 Percent Amid ‘External' Pressures, US Tariffs
PDD Holdings Inc., the Shanghai-based parent company of the retail and shopping platform Temu, saw a significant decline in first-quarter profits and sales as the Chinese e-commerce industry faces growing challenges at home and abroad, while the United States ramps up trade talks with Beijing. In its first-quarter report released ahead of premarket trading in New York and London, PDD said its net income sank 47 percent, to 14.74 billion yuan ($2 billion) from 27.9 billion yuan ($3.8 billion) a year earlier. Revenue was 95.67 billion yuan ($13.2 billion), up by 10 percent, from 86.8 billion yuan ($12 billion) in the first quarter of 2024. On an adjusted basis, PDD reported earnings of 5.19 yuan per share, or $0.72 per share, well below Wall Street expectations of $2.63 per share on sales of 103.06 billion yuan ($14.3 billion), according to FactSet. One yuan is equal to $0.14. Those disappointing results sent PDD's American depositary receipts (ADRs) tumbling. The ADR fell 13.64 percent on the Nasdaq Stock Exchange, to close at $102.98. In London, the company's shares were holding at $118.15 ahead of the opening bell. The Chinese multinational began trading in London and New York after moving its corporate offices to Dublin, Ireland, in early 2023, just months after launching its online U.S. marketplace and expanding operations in Europe. During the company's conference call with analysts that was translated from Chinese, PDD chairman and co-CEO Lei Chen blamed the dismal first-quarter results on multibillion-dollar investments in the company's online platform to support e-commerce merchants and consumers who buy and sell Temu low-priced products. He said those investments weighed heavily on short-term profitability. 'Starting at the beginning of this year, we made substantial investments in our platform ecosystem and made a rapid shift in external environment,' Chen said. 'On one hand, the program is designed to further lower fees for our merchants, improving the business environment of our platform.' Related Stories 4/17/2025 4/4/2025 'On the other hand, we will also invest more to drive sales for our merchants and to help them better adapt to new challenges. In the first quarter, our revenues were [$13.2 billion], which slowed down notably amid rapid change in external environment, at the same time due to the mismatch between the business investment and return cycles.' The external factors Chen mentioned include the U.S. de minimis policy and reciprocal tariffs on China, which President Donald Trump temporarily halted for 90 days in early April to allow trade talks between the two countries to move forward. Under the most recent agreement, the United States lowered its tariff rate on Chinese imports to 30 percent from a peak of 145 percent. In return, the Chinese government reduced its import levy on U.S. goods to 10 percent from 125 percent. In addition, Trump in early April signed an However, a new According to retail industry experts, Chinese e-commerce giants like Shein and Temu take advantage of the de minimis exemption by directly shipping low-value packages to U.S. customers. Temu and the Shein Group, the Chinese e-commerce platform that specializes in inexpensive clothing and fashion items, comprise nearly half of all de minimis shipments to the United States from China, according to a 2023 U.S. House Select Committee Bank of America analyst Curtis Nagle said in a recent research report sent to The Epoch Times that U.S. tariffs and additional levies on Chinese goods could ease the competition that American e-commerce companies face from online vendors such as Temu and Shein, which recently announced a new round of price hikes and reduced U.S. ad spending amid the ongoing U.S.-China trade war. PDD's profits increased rapidly after it launched its Temu online app in the United States in late 2022, with operating profit rising by 93 percent in Looking ahead, however, PDD Holdings's top financial officer warned during the conference call that the Temu parent expects to continue to see a slowdown in sales growth. 'As communicated previously, a slowdown in growth rate is expected as our business scales and challenges emerge. This trend has been further accelerated by the changes in the external environment in the first quarter,' said Jun Liu, PDD's vice president of finance.
