E.l.f. Beauty reports strong growth, boosted by Rhode acquisition

Beauty conglomerate E.l.f. Beauty announced its latest earnings, revealing a 36% increase in net sales to $479.4 million. The standout performer in the company's portfolio is Rhode, the brand founded by Hailey Bieber, which E.l.f. acquired just over a year ago for up to $1 billion.

Rhode has carved out a niche by demonstrating that skincare products priced under $30 can offer a luxurious experience. The brand has also generated viral marketing campaigns featuring unexpected celebrities, such as actor Harris Dickinson, enhancing E.l.f.'s cultural relevance in the mass-market space.

In the recent quarter, Rhode achieved approximately $160 million in net sales, a substantial leap from its full-year sales of $212 million prior to its acquisition. The brand also became Sephora North America's top brand by certain metrics, selling three Rhode products per second upon its launch at the retailer, with similar success in the UK.

Rhode has initiated an ambitious international expansion plan, launching in Latin America via Mexico and entering seven European countries. The brand will soon be available in Sephora stores across Europe. CEO Nick Vlahos stated that a limited-edition collection generated $27 million in direct-to-consumer sales in a single day, a figure that surpasses the annual sales of 90% of beauty industry brands.