e.l.f. Stock: Is Its Rhode Buy a Genius Move or a Risky Gamble?
When the news hit on Wednesday that e.l.f Beauty (NYSE: ELF) was spending up to $1 billion to acquire a beauty company called Rhode, I quickly turned to the most authoritative expert I knew on the subject: my teenage daughter. I asked her if she had ever heard of the brand. In response, she quickly showed me her Rhode smartphone case, which securely holds a Rhode lip gloss in place.That immediately told me that this acquisition could be transformational for e.l.f. However, I also know that not every celebrity beauty brand acquisition has worked out well for the buyer.Over the past few years, e.l.f. has been one of the fastest-growing cosmetic companies, taking significant share in the mass-market space. However, sales growth slowed to only 4% in its fiscal 2025 Q4 (which ended March 31) after growing by 40% through the first nine months of its fiscal year. Meanwhile, given the uncertainties over tariffs and the U.S. economy, management decided not to provide fiscal 2026 guidance. Continue reading
When the news hit on Wednesday that e.l.f Beauty (NYSE: ELF) was spending up to $1 billion to acquire a beauty company called Rhode, I quickly turned to the most authoritative expert I knew on the subject: my teenage daughter. I asked her if she had ever heard of the brand. In response, she quickly showed me her Rhode smartphone case, which securely holds a Rhode lip gloss in place.
That immediately told me that this acquisition could be transformational for e.l.f. However, I also know that not every celebrity beauty brand acquisition has worked out well for the buyer.
Over the past few years, e.l.f. has been one of the fastest-growing cosmetic companies, taking significant share in the mass-market space. However, sales growth slowed to only 4% in its fiscal 2025 Q4 (which ended March 31) after growing by 40% through the first nine months of its fiscal year. Meanwhile, given the uncertainties over tariffs and the U.S. economy, management decided not to provide fiscal 2026 guidance.
