Scaling Skincare: Inside e.l.f.'s $1B Acquisitions of Rhode

Launched just three years ago, Rhode has racked up over $212 million in net sales, built an ultra-loyal fan base with just 10 products, and secured the top spot in earned media value in skincare last year. It's not bad for a brand that, until now, only sells online.

Now, with e.l.f. bringing their formidable distribution and retail power into the picture—including plans to scale into Sephora and global markets—the Rhode acquisition is a strategic masterstroke that speaks volumes about where consumer brands are headed.

Rhode’s explosive success reminds us that you don’t need to do everything—you just need to do something well. With a tightly curated product line and a clearly defined visual and brand identity (clean, minimal, “quiet luxury”), Rhode avoided the all-too-common trap of launching too fast and too broadly.

Their messaging was consistent, their packaging was instantly recognizable, and their promise of uncomplicated, effective skincare for everyday use resonated deeply with a generation that values authenticity over hype.

Yes, this is another celebrity beauty brand. But what made Rhode different was that Hailey Bieber didn’t just slap her name on a label—she shaped the brand DNA. She was visible, hands-on, and relatable from product development to content creation. It felt personal, not transactional.

With her as Chief Creative Officer and Head of Innovation, founder-led authenticity continues, even post-acquisition. That’s a strategic move not just for optics but for retention.

e.l.f.’s acquisition also reflects a more significant shift in the definition of luxury. What once signaled status through exclusivity is now more about access, performance, and design. With Rhode moving into brick-and-mortar retailers, including Sephora, and possibly even broader outlets, the idea of “affordable affluence” becomes real.

e.l.f., known for offering high-performance beauty at drugstore prices, isn’t trying to turn Rhode into a mass brand overnight. But it is betting that luxury can be scaled without diluting—if you do it right.

Perhaps the most impressive stat? Rhode became the No. 1 skincare brand in earned media value, driven by TikTok, pop-ups, waitlists, and loyal fans who created content without being paid. That kind of exposure used to require millions in ad spend. Today, it takes emotional resonance, product trust, and a brand people feel part of, not just consumers of.
It also offers a powerful avenue for retail growth. Rhode’s first major retail rollout is set to hit Sephora stores in the U.S. and U.K. later this year—something e.l.f. can help accelerate with its proven logistics and distribution infrastructure.

However, the timing of the acquisition comes as e.l.f. faces economic headwinds, particularly around escalating tariffs on Chinese imports. Roughly 75% of e.l.f.’s production is sourced from China, and ongoing trade tensions have prompted the company to raise prices by $1 across its product line starting August 1. Due to tariff uncertainty, e.l.f. declined to offer guidance for fiscal 2026.

Still, CEO Tarang Amin called Rhode a rare brand that had scaled faster than almost any he’d seen in his 34-year career.

As Rhode prepares to scale beyond their DTC roots and e.l.f. navigates trade hurdles and shifting consumer habits, this deal will be one to watch—not just in beauty, but in business overall.

For founders and operators, it’s a reminder that lean, brand-driven models with authentic leadership and thoughtful growth planning can lead to billion-dollar outcomes—even in three years.