What E.L.F’s rhode Acquisition means for the beauty industry
What seemed like an unlikely pairing at first glance now looks like a calculated power play that could reshape the affordable-luxury segment of cosmetics. In this post, we’re diving into the strategy behind the acquisition, what it signals for the future of celebrity brands, and why e.l.f. continues to outperform expectations.
What Is Rhode?
Founded in 2022, Rhode quickly made a name for itself with a minimalist, skin-first approach focused on high-performance essentials. The brand, shaped by Bieber’s own skincare philosophy “one of everything really good,” delivers multitasking products designed to hydrate, protect, and nourish the skin barrier. With input from dermatologists, cosmetic chemists, and top makeup artists, Rhode’s formulas prioritize effectiveness, simplicity, and innovation over hype. The brand’s success has been remarkable, generating $212 million in net sales in just the 12 months ending March 2025 and claiming the top spot in skincare brand Earned Media Value for 2024. Until now, Rhode has operated as a direct-to-consumer brand through its website, but it is set to launch in Sephora stores across North America and the UK later this year
What Does the Acquisition Mean for E.L.F. Beauty?
For e.l.f. Beauty, acquiring Rhode is a strategic leap into the prestige skincare market. E.l.f. has long dominated the beauty space. This move positions e.l.f. to compete in new retail channels and appeal to a more premium-seeking-audience – especially as Rhode’s first major retail partnership with Sephora gets underway.
This deepens e.l.f’s investment in skincare overall. The company has been steadily bulding out this segment of its business, first launching e.l.f SKIN and then aquiring Naturium in 2023. Rhode now adds a third powerhouse skincare brand to the portfolio, giving e.l.f. even more weight in a category that continues to outpace color cosmetics in terms of growth. With its unique voice and strong brand equity, Rhode complements e.l.f.’s broader strategy of mass accessibility.
What Does It Mean for Rhode?
For Rhode, joining e.l.f. Beauty opens the door to global scales. While the brand has already built impressive momentum as a digitally native, direct-to-consumer brand, this acquisition gives it access to e.l.f.’s expansive infrastructure, including supply chain efficiencies, retail partnerships, and global distribution networks. Rhode can now accelerate product development, expand internationally, and reach millions of new consumers without sacrificing the creative and quality standards it was founded on.
Importantly, Hailey Bieber will continue as Founder, but will also take on the formal roles of Chief Executive Officer and Head of Innovation. She’ll oversee creative direction, product development, and marketing while staying at the center of Rhode’s public identity. Co-founders Michael and Lauren Ratner and CEO Nick Vlahos will also stay on board, continuing to lead the brand from its headquarters in Los Angeles.