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Fashion Network
2 hours ago
- Business
- Fashion Network
What Elf's $1 billion Rhode bet means for the future of celebrity beauty
But as more household names, influencers, and makeup artists entered the space, shopper fatigue began to set in. With inflation squeezing incomes, buyers became more selective. Many shifted their focus to skincare, haircare, and niche fragrances, moving away from the color cosmetics that once drove viral trends, such as contouring the face with different foundation shades. Consequently, the market has been upended. Even some brands that, like Rhode, achieved breakout success began exploring exit strategies last year. Yet so far, no deals have materialized for names such as Selena Gomez 's Rare Beauty or Makeup by Mario — the brand launched in 2020 by celebrity makeup artist Mario Dedivanovic, best known for his work with Kim Kardashian. Elf's acquisition of Rhode — founded just three years ago — ends a dry spell in celebrity beauty deals and could inject fresh momentum into personality-driven brands. With Rhode, Elf is betting on a premium range featuring just 10 main or 'hero' products, including Pocket Blush and Glazing Milk — items that blur the lines between skincare and makeup. The brand complements Elf's more affordable, cosmetics-focused portfolio. Elf's average price point is about $6.50, compared with nearly $9.50 for other mass-market cosmetics, while Rhode's average is around $29. But Elf is paying a pretty polished price for Rhode, also known for its sleek, minimal packaging. The $800 million in cash and stock payable at the close of the deal, expected before September, equates to 3.8 times Rhode's sales of $212 million in the year to March 31, 2025. Including the additional $200 million payable based on Rhode's performance over the next three years, the multiple is 4.7 times. The latter is in line with the lush deal multiple on L'Oréal SA's purchase of natural beauty label Aesop two years ago. To justify the price tag, Elf must ensure that its new addition doesn't run out of, well, Rhode. The narrow product range offers an obvious starting point for expansion. Elf has already launched a raft of innovations that resonate with Gen Z consumers and have helped turbo-charge its sales — a track record that bodes well for Rhode's future growth. There is also scope for Rhode to reach a wider range of customers. The brand is already due to launch in Sephora in the U.S., Canada, and the U.K. this fall, which is a major milestone. In the long term, Elf could leverage its partnerships with other retailers — it is available in Ulta Beauty Inc. in the U.S., for example, in Douglas AG in Italy, and Boots in the U.K. — to maintain the momentum. Assuming Elf doubles sales over the next three to five years — which looks feasible — then the acquisition multiple would fall to a more reasonable level of about two times. However, there are risks to this trajectory, the most significant of which is Bieber herself. So far, she has defied the broader boredom surrounding celebrity-led brands. But maintaining her relevance remains essential. Six years ago, Coty Inc. placed a major bet on the Kardashians, paying $600 million for a majority stake in Kylie Cosmetics, which Kylie Jenner founded. A year later, the company invested another $200 million for a 20% stake in Kim Kardashian's beauty business. The results have been mixed. Over the past two years, Kylie Cosmetics boosted its sales by 1.5 times, driven by skincare and fragrance launches. Meanwhile, Kardashian's underwear brand Skims bought back Coty's stake, causing a $71 million loss for the U.S.-listed company. Bieber will join Elf as Rhode's chief creative officer and head of innovation. The company has a strong track record of connecting with Gen Z on social media, with viral moments like its collaboration with Chipotle Mexican Grill Inc. It also has experience managing celebrity and influencer-led brands: it acquired Naturium — the skincare label co-created by influencer Susan Yara and beauty-brand accelerator The Center — for $355 million two years ago, and it developed Alicia Keys' brand. Even so, Rhode's close association with its founder remains a risk Elf must actively manage. This isn't the only challenge. Lindsay Dutch, an analyst at Bloomberg Intelligence, expects Elf's sales growth to slow this financial year following a frenetic pace of revenue expansion. The beauty boom is also fading, although Ulta said on Thursday that many consumers were turning to fragrance and body lotion as a comfort and escape from economic uncertainty. There's also the pressure from President Donald Trump 's tariffs. Elf makes about 75% of its products in China and will add $1 to all of its products globally on August 1 to reflect the levies. With so much to grapple with already, taking a big bet on a celebrity-backed brand looks like a surprising diversion. But as any beauty enthusiast knows, there is always room for one more lipstick — particularly if it's a peptide-infused pout enhancer.
Yahoo
9 hours ago
- Entertainment
- Yahoo
Taylor Swift and Selena Gomez Celebrate in N.Y.C. 1 Day After Swift Gets Back Her Music Rights (Exclusive Photos)
Taylor Swift and Selena Gomez reunited for a girls' night out on May 31 The pop stars dined at a restaurant in New York City Swift and Gomez have been friends for years, after they first crossed paths when they were each dating a Jonas brother back in 2008"Long Live" Taylor Swift and Selena Gomez's friendship! Swift, 35, and Gomez, 32, reunited for a girls' night out in New York City on Saturday, May 31. The pair could be seen engaged in conversation while dining together at The Monkey Bar, according to photos obtained by Deuxmoi. For the evening out, Swift wore a black dress, while Gomez sported an all brown ensemble, including a large coat. Never miss a story — sign up for to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories. Swift and Gomez have been good friends for years. They first crossed paths when they were each dating a Jonas brother back in 2008. (Swift was seeing Joe Jonas, while Gomez was linked to Nick Jonas). Over the years, the stars have celebrated each other on various occasions — from marking their birthdays to promoting each other's latest music releases — as well as cheering each other on at award shows. The PEOPLE Puzzler crossword is here! How quickly can you solve it? Play now! Swift and Gomez have also been there for each other amid their respective romantic relationships. The Tortured Poets Department musician is currently dating Travis Kelce, while the Rare Beauty founder is engaged to Benny Blanco. While recently appearing on Spotify's Countdown to, Gomez and Blanco, 37, opened up about how they went to a party Swift threw after an awards show, before anyone knew the couple was dating. Swift's Big Apple outing with Gomez came days after the pop star announced that she finally owns her masters — which allows her to once again be in control of her music catalog after a public ownership feud involving record executive Scooter Braun. 'You belong with me. 💚💛💜❤️🩵🖤,' Swift cleverly captioned an Instagram carousel at the time, including a nod to her 2008 hit of the same name from her album Fearless. is now available in the Apple App Store! Download it now for the most binge-worthy celeb content, exclusive video clips, astrology updates and more! Swift's post featured three photos of her sitting on the floor of a portrait studio, surrounded by her first six albums. (During the years-long battle for ownership of her music, Swift famously re-recorded those LPs as 'Taylor's Version.") Gomez celebrated her BFF after she made the news public, writing in an Instagram Stories post, 'Yes you did that Tay. So proud!' Read the original article on People
Yahoo
21 hours ago
- Entertainment
- Yahoo
Taylor Swift and Selena Gomez Reunite for Girls' Night Out in N.Y.C.
Taylor Swift and Selena Gomez reunited for a girls' night out on May 31 The pop stars dined at a restaurant in New York City Swift and Gomez have been friends for years, after they first crossed paths when they were each dating a Jonas brother back in 2008"Long Live" Taylor Swift and Selena Gomez's friendship! Swift, 35, and Gomez, 32, reunited for a girls' night out in New York City on Saturday, May 31. The pair could be seen engaged in conversation while dining together at The Monkey Bar, according to photos obtained by Deuxmoi. For the evening out, Swift wore a black dress, while Gomez sported an all brown ensemble, including a large coat. Never miss a story — sign up for to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories. Swift and Gomez have been good friends for years. They first crossed paths when they were each dating a Jonas brother back in 2008. (Swift was seeing Joe Jonas, while Gomez was linked to Nick Jonas). Over the years, the stars have celebrated each other on various occasions — from marking their birthdays to promoting each other's latest music releases — as well as cheering each other on at award shows. The PEOPLE Puzzler crossword is here! How quickly can you solve it? Play now! Swift and Gomez have also been there for each other amid their respective romantic relationships. The Tortured Poets Department musician is currently dating Travis Kelce, while the Rare Beauty founder is engaged to Benny Blanco. While recently appearing on Spotify's Countdown to, Gomez and Blanco, 37, opened up about how they went to a party Swift threw after an awards show, before anyone knew the couple was dating. Swift's Big Apple outing with Gomez came days after the pop star announced that she finally owns her masters — which allows her to once again be in control of her music catalog after a public ownership feud involving record executive Scooter Braun. 'You belong with me. 💚💛💜❤️🩵🖤,' Swift cleverly captioned an Instagram carousel at the time, including a nod to her 2008 hit of the same name from her album Fearless. is now available in the Apple App Store! Download it now for the most binge-worthy celeb content, exclusive video clips, astrology updates and more! Swift's post featured three photos of her sitting on the floor of a portrait studio, surrounded by her first six albums. (During the years-long battle for ownership of her music, Swift famously re-recorded those LPs as 'Taylor's Version.") Gomez celebrated her BFF after she made the news public, writing in an Instagram Stories post, 'Yes you did that Tay. So proud!' Read the original article on People
Yahoo
a day ago
- Business
- Yahoo
Selena Gomez Congratulates Taylor Swift on Buying Back Her Masters: ‘So Proud'
Selena Gomez is celebrating her longtime friend Taylor Swift's latest victory. On Friday (May 30), the Rare Beauty founder showed her support for Swift after the pop superstar revealed she had officially purchased back the masters to her first six albums. More from Billboard Here's Why Fans Think Taylor Swift Just Teased Her Next Album After Buying Her Masters Robin Thicke and April Love Geary Marry After Six-Year Engagement Rihanna's Father, Ronald Fenty, Dies at 70: Report 'YES YOU DID THAT TAY!!!' Gomez wrote in all caps on her Instagram Story. 'SO proud!' Swift made the announcement earlier in the day by posting photos of herself with the covers of her first six albums on Instagram, directing fans to a heartfelt letter on her website. In the lengthy message, the 14-time Grammy winner reflected on the emotional journey of reclaiming her music. 'To say this is my greatest dream come true is actually being pretty reserved about it,' she wrote. 'To my fans, you know how important this has been to me — so much so that I meticulously re-recorded and released four of my albums, calling them Taylor's Version.' 'The passionate support you showed those albums and the success story you turned The Eras Tour into is why I was able to buy back my music,' the singer added. 'I can't thank you enough for helping to reunite me with this art that I have dedicated my life to, but have never owned until now.' Swift acquired the masters from private equity firm Shamrock Capital for somewhere around $360 million, sources tell Billboard. The sale comes six years after Scooter Braun's Ithaca Holdings purchased her catalog from Big Machine's Scott Borchetta in 2019, later selling his ownership of Swift's music to Shamrock in late 2020. Of the pop superstar's purchase, Braun tells Billboard, 'I am happy for her.' Gomez and Swift's friendship spans nearly two decades. The two first met in 2008 through the Jonas Brothers — Swift was dating Joe at the time, while Gomez was linked to Nick. Since then, they've remained close, consistently supporting each other through the many highs and lows of their personal lives and careers. Check out a full timeline of their longtime friendship here. Best of Billboard Chart Rewind: In 1989, New Kids on the Block Were 'Hangin' Tough' at No. 1 Janet Jackson's Biggest Billboard Hot 100 Hits H.E.R. & Chris Brown 'Come Through' to No. 1 on Adult R&B Airplay Chart
Daily Mail
2 days ago
- Business
- Daily Mail
Selena Gomez accused of SHADING Hailey Bieber following sale of her beauty brand Rhode
Selena Gomez has been accused of shading Hailey Bieber following the sale of her beauty brand Rhode. News hit the web earlier this week that Hailey's company was being acquired by E.l.f. Cosmetics in a massive, $1 billion deal. The mom-of-one, 28, will still serve as founder of the brand as well as Chief Creative Officer and Head of Innovation. Just one day after the announcement, Selena's cosmetics company Rare Beauty posted two snaps of Selena and simply captioned them with, 'Still here.' One of the images showed the Bad Liar songstress blowing a kiss towards the camera, while another featured her starring into the lens with a sultry look on her face. Many fans became convinced that Selena, 32, was subtly poking fun at Hailey's sale with the post, and they were not amused. Hailey's supporters quickly flooded the replies of the post with angry messages. 'It seems like Hailey is always on her mind. Pathetic,' one outraged user wrote. 'The way she's actually shady as hell,' added another. 'She actually pisses me off. Like MOVE ON UR A GROWN A** WOMAN,' scathed someone else. 'At this point you might as well tag her,' a fourth tweet read. 'Omfg this girl won't miss an opportunity to shade… she needs attention so bad,' a fifth said. A different user penned, 'It doesn't seem like the behavior of someone who claims to be a girl's girl.' 'She is so mean. This is so unnecessary,' someone else wrote. has reached out to Rare Beauty for comment. Hailey launched her much-anticipated brand in June 2022, releasing only three products at the time - Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip Treatment. Many fans became convinced that Selena, 32, was subtly poking fun at Hailey's sale with the post, and they were not amused. Since then, the brand has grown exponentially, expanding into different tinted lip products, blush, and even viral phone cases that double as lip gloss carriers. 'E.l.f. Beauty found a like-minded disruptor in Rhode,' said E.l.f. Chairman and CEO Tarang Amin Wednesday, per Business Wire. 'Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible,' his statement continued. '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.' Following the news, Hailey took to Instagram to break her silence on the monumental deal. 'When I launched @rhode 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,' she wrote in the caption, which was accompanied by two pictures of her. 'So today I am so incredibly excited and proud to announce that we are partnering with E.l.f. Beauty as we step into this next chapter in the world of Rhode. '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. 'I feel invigorated, excited and more ready than ever to step into an even bigger role as Chief Creative Officer, and Head of Innovation of Rhode as well as strategic advisor to E.l.f. Beauty.' Selena and Hailey have long been pitted against each other due to their shared romantic link with Hailey's husband Justin Bieber. However, both beauty founders have made attempts to quash the narrative with statements on social media and in the press. Last week, Selena seemingly showed her support for Hailey when she liked a post by Sephora announcing a collaboration with Rhode. Rhode products will begin being sold at Sephora this fall, joining Selena's Rare Beauty items on the retailer's shelves. In April Hailey was called a 'creepy stalker' for using similar language in her 2025 Daily Front Row acceptance speech to what Gomez used in a 2021 interview with Special Madame Figaro Arabia. As Hailey picked up the Beauty Innovator of the Year Award, she said, 'When I started Rhode, I didn't want to start a brand for the sake of starting a brand. I really wanted to create an entire world.'
