Rhode to success? Skincare brand sells to e.l.f Cosmetics

Hailey Bieber’s brand bags $1 billion sale, will it sustain the hype?

Skincare brand Rhode is set to hand over its reins to industry giant, e.l.f Cosmetics. Hailey Bieber’s viral brand has been sold to the beauty giant for $1 billion dollars, one of the biggest sales in the beauty field in recent memory.

Bieber took to instagram last night to share her billion-dollar transactional affair. “The most important thing for me is to keep bringing Rhode to more spaces, places, and faces globally,” she said.

“Young individuals across the globe have idolised Hailey due to her likeability and have therefore supported Rhode’s products since its creation. It’s down to its sleek packaging and limited time only drops such as the viral phone case.” says Paul Toner, deputy editor at Ten Magazine.

Last week, Shift predicted a hefty deal was on the horizon after Bieber had reportedly hired investment banks JPMorgan Chase and Moelis to explore potential sale options. 

It comes as a shock to most, as the ‘It girl’ skincare brand is exclusive to its online store, therefore pairing with the ‘dupe, budget-friendly’ e.l.f Cosmetics raises concerns for the brand’s image.

We returned to Sephora, which is due to stock Rhode later this year, to ask if this news could potentially affect the brand’s perception, and its sales when launching at the retailer.

“I’m hopeful,” says Priscilla B, make-up artist at Sephora Westfield Stratford. “Rhode already has a strong customer base. As a make-up artist, we know that some brands own others, but as a consumer, we don’t really care. I don’t think it will dilute the luxury feel of Rhode , yes it’s a concern, but by the time it is launched [at Sephora] most people won’t remember – nor care. I don’t see it having a negative impact.”

According to e.l.f’s annual report, from 2022 to 2023, the company’s net sales increased from $578 million to $1 billion.

Has the company made a worthwhile investment into Bieber and her skincare empire? Inthenick says to watch this space.