Hailey Bieber’s beauty brand, Rhode, has seen tremendous success since its inception in 2022. With a focus on direct-to-consumer sales and a curated selection of just 10 products, the brand has achieved an impressive $212 million in net sales in less than three years. This growth can be attributed to Hailey’s strategic vision and the unique aesthetic appeal of Rhode’s products.
In a recent deal with Elf Beauty, Rhode is set to be acquired for $800 million in cash and stock, with an additional earn-out consideration of $200 million based on future brand growth over the next three years. Elf Beauty’s CEO, Tarang Amin, praises Hailey as a thoughtful founder with great strategic instinct, highlighting Rhode’s disruptive impact on the beauty industry.
Hailey’s influence extends beyond just product sales, with the brand’s innovative offerings like the lip gloss phone case and traveling photo booth creating buzz and excitement among consumers. In 2024, Rhode drove $400 million in earned media value, surpassing industry benchmarks for engagement rate.
Hailey’s goal is clear: she aims to make Rhode the biggest beauty brand in the world. The recent retail debut at Sephora has expanded the brand’s reach beyond its DTC roots, setting the stage for further growth and sales maximization. Both Hailey and Elf Beauty express their commitment to focusing on retail rollout and distribution strategy in the coming year.
The billion-dollar acquisition of Rhode stands out in a cautious M&A landscape, marked by subdued activity in recent years. Amin’s confidence in the deal stems from Hailey’s track record as a disruptor in the industry, as well as Elf Beauty’s expertise and growth trajectory. The partnership with Elf Beauty is expected to help Rhode expand into new markets, with Hailey mentioning demand for the brand in territories like Brazil.
Overall, the acquisition of Rhode by Elf Beauty signals a new chapter for the brand, with potential for global expansion and continued success in the beauty industry. Hailey’s vision and strategic approach have positioned Rhode as a standout brand, poised for even greater achievements in the future.
