How Rhode Perfected the 'Cool Girl' Aesthetic — and Landed a $1 Billion Acquisition by e.l.f. Beauty
The Deal
Hailey Bieber's skincare brand, Rhode, has been acquired by e.l.f. Beauty in a landmark deal valued at up to $1 billion. The agreement includes $600 million in cash, $200 million in e.l.f. stock, and an additional $200 million contingent on Rhode's performance over the next three years. This acquisition marks e.l.f.'s largest to date and is expected to close in the second quarter of fiscal year 2026, pending regulatory and shareholder approvals.
Founded in 2022, Rhode quickly gained traction in the beauty industry, generating $212 million in net sales in its most recent fiscal year. The brand's success is attributed to its minimalist product line and strong appeal among younger consumers. Rhode's products, initially sold online and through pop-ups, are slated to become available at Sephora locations in North America and the UK.
As part of the acquisition, Hailey Bieber will continue to play a pivotal role in the brand's development. She will serve as Chief Creative Officer and Head of Innovation for Rhode, as well as act as a Strategic Advisor to e.l.f. Beauty. Bieber's involvement underscores her commitment to the brand's vision and her influence in the beauty sector.
Why is Rhode the unofficial “Cool Girl” brand
Cool girls love Rhode Skin because it perfectly captures the effortless, clean, and modern aesthetic that defines today’s beauty culture. Founded by Hailey Bieber, the brand leans into minimalism — not just in packaging, but in product formulation. It’s skincare that feels luxurious without being fussy, with a focus on glowing, healthy skin rather than heavy makeup or complex routines.
One of Rhode's biggest draws is how well it aligns with social media trends — especially the “clean girl” and “glazed donut” look that Bieber popularized herself. The viral lip treatments, in particular, became an instant must-have, thanks to their high shine, hydrating formula, and chic, Instagrammable design. For a generation that craves beauty that’s both effective and aesthetically pleasing, Rhode delivers on both fronts.
On top of that, Rhode feels aspirational but accessible. Its price point is relatively affordable compared to luxury skincare, and the brand is transparent about its ingredients and values. That authenticity — paired with Hailey’s cool-girl status — makes Rhode feel less like a celebrity cash grab and more like a curated, credible beauty label. It’s the skincare equivalent of a great white tank top: simple, stylish, and always on trend.
What this means for E.L.F Beauty
The acquisition has also positively impacted e.l.f. Beauty's financial standing. Following the announcement, the company's stock surged nearly 24%, reflecting investor confidence in the strategic move. E.l.f. reported a 47% year-over-year earnings increase and a 71% gross margin, highlighting the company's robust financial health and the potential benefits of integrating Rhode into its portfolio.
Overall, the deal signifies a major milestone in the beauty industry, showcasing the successful convergence of celebrity influence and strategic business acumen.
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