How E.l.f. pulled off its $1 billion Rhode deal
Since the announcement of President Donald Trump’s tariffs, cosmetics company in the first financial quarter ELF beauty It reported a 30% decrease in net income, which led to a decrease of approximately 11% of its shares decreased by about 11% on the day after the earning report. ELF supplies 75% of its products from China.
Nevertheless, the company’s CEO Tarang Amin said that ELF’s net sales growth focuses on the 26 consecutive neighborhoods of the company, the company’s international and retail expansion, and the purchasing of Hailey Bieber’s popular skin care brand Rhode’s $ 1 billion purchase.
“We were able to prove people wrong in 26 flat quarters,” Amin said. “That’s why we’re not worried about the short -term stock reaction,” he said.
“We think that this consistency of our delivery at the end of the day is the most important thing. And people always come out.”
ELF’s affordable but premium products, the rise of “Dupe Culture” and Tiktok, Roblox and even Super Bowl focused on marketing has become viral on social media.
ELF Cosmetics was the units sold by units sold in the US in 2024 and the number 2 -2 cosmetics brand. company. The company is the most purchased brand by Gen Z, Gen Alpha and a thousand years of consumers.
Anna Lizzul, an Analyst of Bank of America Securities, Anna Lizzul, a Bank of America Securities Analyst, which includes households, personal care and beauties, said, “Over time, the number 1 mass will be a cosmetic company.”
ELF tough Former players such as Estée Lauder and L’Oréal and their net sales slowed down in the next quarter, and after 77%of sales increased by 77%, he celebrated the first billion dollar financial quarter in May 2024.
The Rhode agreement will also bring ELF to Sephora stores in the USA this fall. Although the company finances the agreement with a debt of $ 600 million, experts carefully optimistic. According to ELF, Rhode increased to $ 212 million in net sales in just three years
“I think it turned out to be collectively collectively. So, I love to be scratching and understanding through that lens.” He said.
Watch this video to learn more.
