E.l.f. Beauty Acquires Hailey Bieber's Brand Rhode in $1 Billion Deal

Published 1 days agoELF

E.l.f. Beauty has made headlines with its $1 billion acquisition of Hailey Bieber's makeup and skincare brand, Rhode. This landmark deal, consisting of $800 million in cash and stock, plus an additional $200 million contingent on performance, marks E.l.f.'s most significant move into the prestige beauty market yet. According to Reuters, this acquisition is aimed at strengthening E.l.f.'s foothold in premium beauty, aligning with its expansion strategies.

Amidst these strategic maneuvers, E.l.f. is dealing with the complexities of international trade policies. The company has chosen not to issue fiscal 2026 guidance due to uncertainties related to import tariffs. Approximately 75% of E.l.f.'s products are sourced from China, and with the looming tariff issues, the brand plans to increase prices by $1 to counterbalance these pressures. Furthermore, E.l.f. reported a robust 31% growth in net sales during Q3, though it remains cautious looking forward, citing a slowdown post-holiday.

To navigate the potential impact of import tariffs, E.l.f. Beauty is once again implementing a 'tariff playbook,' reminiscent of its 2019 strategy. This includes negotiating supplier concessions, achieving cost savings, and executing selective price hikes. Additionally, the company is actively working on diversifying its supply chain to cushion against any future tariff impacts, as reported by Glossy.

Share this article

Twitter Facebook LinkedIn

Recent Articles

Elon Musk Departs DOGE, Impacting Tesla's Stock

Elon Musk Departs DOGE, Impacting Tesla's Stock

13 minutes agoTSLA

Elon Musk has stepped down from his position at the Department of Government Efficiency (DOGE), a cost-cutting agency created during the Trump administration. His departure marks the end of a tenure characterized by ambitious fiscal goals, including a target to reduce federal spending by $2 trillion, although only $150 billion in cuts were achieved, according to reports from time.com. Following the news, Tesla's stock has seen a 22% drop, as controversy surrounding Musk's political involvement appears to have weighed on investor sentiment. Currently, Tesla's stock price stands at $348.36, following a decrease of $10.07. The stock's recent performance includes an open price of $355.57 and fluctuations between a high of $363.56 and a low of $345.34 in intraday trading. With Musk's focus shifting back to his business ventures like X/xAI and Tesla, and plans to minimize political expenditures in future elections, DOGE's future remains uncertain. As Reuters reports, there is speculation that Russell Vought might take over leadership, though some former staffers are skeptical about the agency's sustainability without Musk's involvement.

Rivian Considers High-Yield Bond to Manage Debt

Rivian Considers High-Yield Bond to Manage Debt

28 minutes agoRIVN

Rivian Automotive is reportedly eyeing the issuance of high-yield bonds as a strategic move to refinance its existing debt. This step comes amid the company facing a forecasted decline in vehicle deliveries, which is expected to influence its revenue and cash flow streams. Rivian, like several other automakers, is tackling challenges posed by fluctuating deliveries. The firm is aiming to use the proceeds from the potential bond sale to provide greater liquidity and sustain financial flexibility during this period. However, the specifics regarding investor reactions and the exact terms of the bond offering have not yet been revealed, according to Reuters. This consideration underscores Rivian's ongoing efforts to adapt to current financial impediments and maintain stability amid evolving market dynamics.

JPMorgan CEO Warns of U.S. Economic Challenges Amid Strong Bank Performance

JPMorgan CEO Warns of U.S. Economic Challenges Amid Strong Bank Performance

43 minutes agoJPM

JPMorgan Chase CEO Jamie Dimon has recently raised alarms about the U.S. economy, highlighting a range of issues including persistent inflation, high fiscal deficits, and geopolitical uncertainties. Dimon, speaking through various outlets such as CBS News, stressed that these factors indicate 'considerable turbulence' ahead for the economic landscape. Delving further into potential threats, Dimon cautioned about the risk of stagflation—a combination of low economic growth and high inflation. He pointed out that this scenario might be more plausible than other analysts suggest, noting its exacerbation by recent tariffs that could slow growth and spark a recession. Additionally, the CEO expressed concerns about the burgeoning national debt, warning that if it continues unchecked, it could lead to significant market disruption, as noted by Fox Business. Despite these ominous economic forecasts, JPMorgan Chase itself has demonstrated financial resilience. The bank posted an impressive 50% increase in net income for the fourth quarter of 2024 compared to the previous year. These results illustrate JPMorgan's strong market position even as broader economic conditions pose considerable risks.

Amazon Plans $150 Billion Global Data Center Expansion for AI Surge

Amazon Plans $150 Billion Global Data Center Expansion for AI Surge

58 minutes agoAMZN

Amazon is taking a major step in expanding its data center infrastructure globally, responding to increasing demand for artificial intelligence technologies. The e-commerce and cloud giant has announced plans to invest nearly $150 billion over the next 15 years into building and operating these facilities worldwide. The move is part of Amazon's strategy to accommodate the rising need for AI applications and digital services. In specific regions, Amazon Web Services (AWS) is channeling sizable funds to bolster local infrastructure. Notably, AWS is directing an additional $10 billion into Ohio, raising its total investment in the state to over $23 billion by 2029. In Georgia, AWS plans on an influx of at least $11 billion to amplify its cloud and AI capabilities, a move that is expected to generate hundreds of new jobs. As reported by AP News, Amazon is also considering the use of small nuclear reactors to sustainably meet the substantial energy needs of its data centers. In addition to these infrastructure investments, Amazon is intensifying efforts to innovate in AI hardware, positioning itself to compete with industry leaders such as Nvidia. This includes the development of the Trainium 2 AI chips designed for training large-scale AI models. Meanwhile, Amazon is also collaborating with firms like Orbital Materials to improve the energy efficiency of its data centers, furthering its commitment to sustainability.