E.l.f. Cosmetics Buys Hailey Bieber’s Rhode for $1 Billion: What This Means for Beauty Fans

E.l.f. recently made headlines by announcing its acquisition of Hailey Bieber’s Rhode brand for $1 billion. This move brings Rhode, a popular name among Gen-Z beauty enthusiasts, under the wing of a rapidly growing beauty conglomerate.

Founded in 2022, Rhode has gained a lot of attention. Its innovative skincare products, like the Pocket Blush and Glazing Milk essence, led to impressive sales of $212 million last year from just ten products. This fall, Rhode will be available in all Sephora stores in the U.S. and Canada, expanding its reach significantly.

E.l.f. itself has had a remarkable run in the beauty industry, known for offering high-quality products at low prices. Its sales have increased steadily, with a recent reported revenue of $1.3 billion for the fiscal year 2025, marking a 28% increase. However, this is a slowdown compared to the previous year’s astonishing growth.

Tarang Amin, E.l.f.’s chairman and CEO, spoke about the synergy between E.l.f. and Rhode, highlighting Bieber’s unique vision. “Hailey isn’t just a celebrity; she really understands beauty,” he noted. This partnership taps into Rhode’s passionate customer base, especially after the brand’s successful pop-up in L.A., where fans camped out overnight for a chance to shop.

Bieber will remain actively involved with Rhode as co-founder and chief brand officer. Under the deal, E.l.f. will pay $800 million upfront, along with potential bonuses based on Rhode’s future growth.

Despite the celebrity beauty trend declining, Rhode’s authenticity keeps it thriving. Unlike other brands, Bieber’s deep love for beauty shines through in her products. She’s also a savvy marketer, popularizing trends like “latte makeup” and “donut glazed skin.” Her marketing skills are helping Rhode stand out in a crowded market.

The acquisition signals a broader trend in the beauty industry, which has struggled with brand valuations recently. While many firms are cautious, E.l.f. is actively seeking growth opportunities. Its last major deal was in 2023 with the influencer-led brand Naturium, which shows E.l.f.’s commitment to tapping into rising beauty trends.

Rhode’s alignment with E.l.f. offers several benefits. It will allow Rhode to penetrate major retail spaces like Sephora while helping E.l.f. diversify its product range. Rhode’s price point, ranging from $18 to $38, also aligns well with younger consumers who are increasingly selective with their purchases.

Despite challenges like increased production costs and tariffs, E.l.f. remains adaptive. It plans to keep investing in digital marketing, which has proven effective in driving sales. Amin emphasized the importance of maintaining a strong marketing presence.

Overall, this acquisition marks a new chapter for both E.l.f. and Rhode. The partnership could redefine the beauty landscape, leveraging innovation and authenticity to attract a younger audience. As they navigate this journey together, it’s clear both brands share a vision of growth and sustainability in the beauty industry.



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