Hailey Bieber has sold her skincare and makeup brand Rhode to e.l.f. Beauty in a deal valued at up to $1 billion (£740m). The 28-year-old model, who is married to pop star Justin Bieber, co-founded Rhode in 2022, giving it her middle name. Rhode quickly became a viral sensation, especially on TikTok, with its “peptide lip treatments” and pocket blush products, leading to $200 million in net sales in the 12 months to March.
The Rhode deal
e.l.f. Beauty announced it would acquire Rhode for $800 million in cash and stock, with a potential $200 million payout based on future sales performance. Hailey Bieber will stay on as chief creative officer, while other co-founders and executives will continue leading the business. Rhode’s presence is set to expand further, with plans to appear in Sephora stores in the US and UK this year.
In the announcement, Hailey Bieber called the deal the “next chapter” for Rhode, saying: “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.”
Despite the brand’s massive success, some industry experts have questioned the timing of the sale, noting Rhode’s potential for continued growth in the future.
Reports have suggested that financial concerns in the Bieber household might have influenced the decision. Justin Bieber, who canceled his “Justice” world tour, is reportedly experiencing a cash crunch and owes over $8 million to his former manager, Scooter Braun. Fans speculated that Hailey’s decision to sell Rhode could be linked to helping her husband’s financial situation.
About e.l.f. Beauty
e.l.f. Beauty, Inc. (originally named Eyes Lips Face Cosmetics) was founded in 2004 in New York City by Joseph Shamah and Scott Vincent Borba. The idea stemmed from Borba’s observation of women with luxury cars buying inexpensive cosmetics at 99-cent stores in Los Angeles, highlighting a demand for high-quality, affordable makeup.
Today, the company sells everything from mineral-based makeup to bath and skincare products and professional tools. Its offerings are available in major retailers such as Target, Kmart, Walmart, and Dollar General across 17 countries.
A large part of e.l.f.’s success comes from its direct-to-consumer model: over half of its sales are generated through its website, which also acts as a social networking hub with more than two million members.
The acquisition of Rhode aligns with e.l.f.’s mission to “create a different kind of beauty company,” as CEO Tarang Amin put it.
The company is making significant waves in financial terms too in 2024, e.l.f. Beauty reported a 77% year-over-year net sales increase, reaching $1.024 billion for fiscal 2024, with Q4 sales up 71% to $321.1 million.
The Rhode deal
e.l.f. Beauty announced it would acquire Rhode for $800 million in cash and stock, with a potential $200 million payout based on future sales performance. Hailey Bieber will stay on as chief creative officer, while other co-founders and executives will continue leading the business. Rhode’s presence is set to expand further, with plans to appear in Sephora stores in the US and UK this year.
In the announcement, Hailey Bieber called the deal the “next chapter” for Rhode, saying: “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.”
https://www.instagram.com/p/DKNEEUMxCOk/ https://www.instagram.com/p/DKNEEUMxCOk/
Despite the brand’s massive success, some industry experts have questioned the timing of the sale, noting Rhode’s potential for continued growth in the future.
Reports have suggested that financial concerns in the Bieber household might have influenced the decision. Justin Bieber, who canceled his “Justice” world tour, is reportedly experiencing a cash crunch and owes over $8 million to his former manager, Scooter Braun. Fans speculated that Hailey’s decision to sell Rhode could be linked to helping her husband’s financial situation.
About e.l.f. Beauty
e.l.f. Beauty, Inc. (originally named Eyes Lips Face Cosmetics) was founded in 2004 in New York City by Joseph Shamah and Scott Vincent Borba. The idea stemmed from Borba’s observation of women with luxury cars buying inexpensive cosmetics at 99-cent stores in Los Angeles, highlighting a demand for high-quality, affordable makeup.
https://www.instagram.com/p/DKKbGpkJVPJ/ https://www.instagram.com/p/DKKbGpkJVPJ/
Today, the company sells everything from mineral-based makeup to bath and skincare products and professional tools. Its offerings are available in major retailers such as Target, Kmart, Walmart, and Dollar General across 17 countries.
A large part of e.l.f.’s success comes from its direct-to-consumer model: over half of its sales are generated through its website, which also acts as a social networking hub with more than two million members.
The acquisition of Rhode aligns with e.l.f.’s mission to “create a different kind of beauty company,” as CEO Tarang Amin put it.
The company is making significant waves in financial terms too in 2024, e.l.f. Beauty reported a 77% year-over-year net sales increase, reaching $1.024 billion for fiscal 2024, with Q4 sales up 71% to $321.1 million.
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