What's Happening?
E.l.f. Beauty reported a 38% increase in sales to $489.5 million in the third quarter, largely driven by the successful launch of Hailey Bieber's Rhode brand at Sephora. Acquired by e.l.f. Beauty in August 2025, Rhode has become a top-selling brand in Sephora North America and achieved a record-breaking launch in the UK. The brand's performance has led e.l.f. Beauty to raise its profit forecast for the 2026 fiscal year, expecting Rhode to contribute significantly to its net sales growth.
Why It's Important?
The success of Rhode at Sephora underscores the impact of strategic brand acquisitions and partnerships in the beauty industry. E.l.f. Beauty's ability to leverage Rhode's popularity highlights the importance of aligning with influential brands and personalities
to drive sales and market presence. This development could influence other beauty companies to pursue similar strategies, potentially reshaping competitive dynamics and consumer preferences in the sector.
What's Next?
E.l.f. Beauty plans to expand Rhode's global reach by launching in Australia and New Zealand with Mecca. The company anticipates continued strong demand for Rhode, with international markets playing a significant role in its growth strategy. This expansion could further solidify Rhode's position in the global beauty market and enhance e.l.f. Beauty's overall brand portfolio.
