Hailey Bieber's Rhode brand sold to e.l.f. Beauty in $1 billion deal targeting Gen Z
Hailey Bieber's Rhode brand sold to e.l.f. Beauty in $1 billion deal targeting Gen Z
Show Caption
Hide Caption
Hailey Bieber sells her beauty brand Rhode to e.l.f. in $1B deal
Hailey Bieber is selling her makeup and skincare brand, Rhode, to e.l.f. Beauty in a deal valued at up to $1 billion.
unbranded - Newsworthy
Model Hailey Bieber's makeup and skincare brand, Rhode, is being snapped up by Elf Beauty ELF.N for about $1 billion, giving the budget cosmetic retailer access to a celebrity-endorsed product line that has become hugely popular among Gen Z and millennials.
Elf said on Wednesday it would pay Rhode shareholders $800 million in a combination of cash and stock and an additional potential earnout consideration of $200 million subject to certain performance-related conditions.
Last month, Reuters reported that Bieber was exploring a sale of the brand, which could be worth more than $1 billion.
For Elf, the deal would mark a shift in strategy and expand into the prestige beauty market as the company faces weak demand from mass market customers who are being pressured by persistent high inflation.
"The Rhode deal is a bold move for e.l.f. into premium beauty at a time when the prestige side of the industry has lost some of its momentum as a result of consumers buying less or trading down," said Sky Canaves, eMarketer analyst.
However, Rhode has bucked this trend, Canaves added, with a strong Gen Z following and significant buzz around its product launches, positioning it well for a strong expansion.
In case you missed it: More women are stretching salon budget with 'recession hair.' What is it?
Elf — short for eyes, lips and face — offers products priced as low as $2 at U.S. retailers including Walmart WMT.N, Ulta Beauty ULTA.O and Target TGT.N.
On the other hand, Rhode — which launched in 2022 and gained popularity with TikTok viral products such as its $18 "peptide lip treatments" — sells exclusively through its own website or pop-up stores, relying heavily on Hailey Bieber's social media influence.
"e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally," Bieber said.
The company raked in about $212 million in sales for the year ended March 31 and is planning to start selling at Sephora stores across the U.S. and Canada coming this fall, followed by the UK.
"Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible," Elf CEO Tarang Amin said in a statement.
Earlier this year, Elf's shares cratered 20% after the company cut its annual forecasts and warned of weakening demand.
Elf's deal with Rhode would mark its biggest acquisition to date and follows its $355 million acquisition of skincare company Natrium in 2023.
Bieber will continue her role as founder and will also act as a "strategic advisor" after the deal closes. The transaction is expected to close in the second quarter of fiscal 2026.
Separately, Elf on Wednesday refrained from providing a fiscal 2026 forecast due to uncertainty surrounding import tariffs despite beating Wall Street expectations for fourth-quarter sales.
The company, which sources about 75% of its products from China, down from 100% back in 2019, said last week it would raise prices by $1 to combat tariff pressure.
Shares of Elf were down about 1% after the bell.
Reporting by Anuja Bharat Mistry and Neil J Kanatt in Bengaluru; Editing by Alan Barona
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
Generation Z employees say they rely on AI for emotional intelligence
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. Generation Z employees are increasingly using artificial intelligence tools for emotional intelligence concerns in the workplace, such as understanding a manager's tone in an email and drafting an appropriate reply, according to a June report from In a survey, 76% of Gen Z workers said they use AI chatbots. Among those, 94% said they've used AI to navigate workplace issues. Nearly 3 in 10 said they do so 'all the time,' while 40% do it often. 'Gen Z workers often feel more validated and confident after consulting AI because these tools offer immediate, judgment-free feedback in a format that feels safe and familiar to this generation raised in a digital world,' said Kara Dennison, head of career advising at In the survey of more than 1,000 full-time U.S. Gen Z workers, nearly half said they change how they communicate with others after using AI; a third respond more assertively than usual, and 26% apologize or take responsibility. Gen Z workers said they most commonly use AI chatbots to interpret tone, with 75% saying they've asked a chatbot to analyze an email, Slack message or other digital communication. They've also used AI for emotionally charged, sensitive situations that involve miscommunication or direct conflicts with managers or co-workers. Although many Gen Z workers say AI chatbots help them process workplace conflicts, it isn't always positive. Forty-three percent said AI reinforced their biased reaction or beliefs, and 17% said AI has made them less likely to take personal responsibility. 'One of the biggest risks is the elimination of personal responsibility,' Dennison explains. 'If an AI tool consistently validates a user's perspective without challenging it, it can reinforce a fixed mindset, enabling blame-shifting rather than self-reflection.' Dennison noted the potential upsides of AI use but emphasized that chatbots can't address the nuances or empathy needed in sensitive situations. For instance, AI can't interpret body language, understand power imbalances or navigate organizational context, she said, adding that AI users may miss out on professional development or real-world feedback from workplace conflicts. 'Healthy workplace communication depends on empathy, active listening and accountability,' Dennison said. 'AI can complement that process, but it cannot replace it.' More than half of Gen Z workers see AI tools as a co-worker or even a friend, and nearly half said they'd rather ask a chatbot a question than consult their boss, according to another report from Workers said they use AI to complete tasks, make tough decisions, seek advice and find mental health support. In the midst of AI use and workplace conflicts, HR pros can help create an emotionally healthy culture, according to a report from McLean & Co. Instead of avoiding emotions at work, employers can be 'proactive about how emotions and work can coexist to enable workplaces where everyone can thrive,' McLean advised. Recommended Reading AI job postings are on the rise, notably in software development, Indeed says
Entrepreneur
5 hours ago
- Entrepreneur
How India's Digital Natives are Redefining Financial Services
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Ask a 20-year-old today about their money goals; chances are, they'll offer a detailed perspective on why financial literacy and independence are essential. Younger generations—particularly Gen Z and Millennials—engage with financial services earlier and more actively than previous generations, showing increased seriousness about financial planning, savings, and investment. Delhi-based financial analyst Ayush Dawar shares, "I aspire for financial freedom, having enough passive in come or resources to cover life's needs to lead a life full of adventure, creativ ity, and generosity." Gen Z is a significant and rapidly growing segment of the customer base for BFSI (Banking, Financial Services, and Insurance). From a barter system to the Unified Payments Interface (UPI), India's financial transformation is a noteworthy one, one that leverages technology to its finest. "As the first truly tech-native generation, Gen Z's financial habits are deeply intertwined with technology. They're app-first for everything – payments, expense tracking, and even diving into invest ments early," shares Adarsh Agarwal, chief actuary and product officer, Go Digit General Insurance. From mobile applications and e-signature capabilities to offering alternative investments and gamification, financial services providers are constantly evolving with new offerings. Digital Over Physical Kadence International reports that 67 per cent of Indian youth are now using neo-banking services, moving away from traditional physical banks. Reserve Bank Innovation Hub observed that most of the Gen Z participants hadn't visited a physical bank branch or ATM over the last three years (at a minimum). Convenience, speed, and accessibility are the reasons. However, those preferring the tradi tional route hold human interaction and relationship managers integral. "Gen Z thinks about money very differently. They have grown up in a digital world where they expect things to be instant, transpar ent, and intuitive. Unlike millennials who often lean on traditional banking, Gen Z questions everything from hidden fees to outdated processes," shares Vinay Bagri, CEO and Co-founder, Niyo. Hence, financial institutions must adopt a digital-first approach with a simple and cool UI/UX. "We also integrate visa and flight booking, insurance, and rewards in one seamless app because Gen Z doesn't want ten apps for ten purposes," adds Bagri. In order to stay abreast, Indian banks are working to improve their user interface (UI) and user experience (UX) to enhance customer satisfaction and en gagement. Case in point, with the iMobile app, ICICI Bank is providing personalised offers and alerts based on spending pat terns and account behaviour, i.e. receiving targeted promotions for credit cards or in surance plans that align with a customer's financial habits Tailored offerings Agarwal feels tailoring products ac cording to the needs and trends of the hour is crucial to align with the values and needs of a target market like Gen Z. A 2024 Redseer report stated that personal loans made up 40 per cent of Gen Z's borrowing, followed by credit card spending at 27 per cent. Pratik Shah, partner and national leader – Financial Services, EY India, earlier noted that credit cards are a growing trend with 46 per cent of Gen Z choosing them for rewards and discounts, and 36 per cent for convenience. Education and healthcare are key cat egories under financing. Akshay Mehrotra, co-founder and CEO of Fibe, shares that the startup identified the shift in the mindset of Gen Z early in its journey. "Gen Z doesn't want to live paycheck to paycheck—they seek financial flexibility and the ability to access their earnings when needed," he shares. Great Learning's 2024 report stated that 83 per cent of freshers intended to upskill in FY25. "With upskilling essential in today's fast-paced world, our education financing solutions support young professionals to up grade their careers and stay ahead in an ever evolving job market," Fibe's chief shares. It is also enabling customers to tap into their mutual funds. "We also offer Loan Against Mutual Funds, enabling users to unlock val ue from their investments without redemp tion… We see Loan Against Mutual Fund a hit with Gen Z, and they love the idea of Interest only product, and we have high demand coming in from them," Mehrotra notes. A loan against mutual funds lets investors use their mutual fund units as security to borrow money. The lender checks the value of these units and of fers a loan based on a percentage of that value. This is a good option for those who need money but don't want to sell their investments, allowing them to keep earning potential returns. Building Ecosystems Fintech players are levelling their game by going the extra mile to attract and retain existing and potential customers, particularly Gen Z. For instance, Go Digit, to encourage a shift to a more environ mentally friendly transportation mode, offers EV Motor add-on with competitive premium rates. Beyond the product, Niyo is creating an ecosystem that speaks the Gen Z language. "Our community platform helps them connect with like minded peers across the country, share knowledge, and feel empowered. We share educational content and collabo rate with influential voices in travel. Gen Z doesn't seek complexity, they want clarity, speed, and rewards," shares Bagri. The Finfluencers Landscape The rise of financial influencers (finflu encers) and content has made youngsters comfortable with topics related to money matters. As of December 2024, India had approximately 232,000 finfluencers. This connection is being tapped by institu tions, startups, and corporations. Eighty two per cent of retail investors in India have acted on financial advice from influ encers. "The relatability and authenticity of the influencer are the primary factors that drive their trust. Insurance compa nies are also leveraging brand ambassa dors who embody the values and beliefs of Gen Z," says Agarwal. Calling social media today is what word-of-mouth was two decades ago, but effective, Bagri shares, "Gen Z is constantly learning from people they trust online. Whether it's a finance creator explaining forex charges or a travel vlogger talking about our card benefits abroad, authenticity matters." India's private banks, such as HDFC Bank, are collaborating with influencers on social media to promote and establish their products. "Whether it's busting forex myths on a travel vlog or showing real-time currency savings on a trip to Bali, we meet Gen Z where they scroll," Bagri adds. By 2030, Gen Z is expected to make up 36 per cent of India's workforce and con tribute nearly USD 730 billion in direct spending. This growing economic influ ence means financial institutions must continuously adapt, offering smarter, simpler, and more intuitive services that speak Gen Z's language.
Fast Company
6 hours ago
- Fast Company
No one wants to be a leader. Here's why it's still a great role.
Leadership used to be a role people aspired to. But today, employees are increasingly avoiding leadership positions or even stepping out of leadership roles. In fact, 40% of leaders have considered leaving their role to improve their work-life balance and well-being according to a survey of almost 11,000 leaders by DDI. A comprehensive survey by Rand across 34 countries involving 27,000 adults found that 39% didn't want career progression and 57% would reject a job if they thought it would have negative effects on their work-life balance. And according to a separate survey by DDI, Gen Z is 1.7 times more likely than other generations to consider leaving leadership roles because they want to protect their well-being. However, there are still compelling reasons to seek leadership. And there are great reasons to stick with it if you're already in a leadership role. 1. Making a positive impact Leadership is the most direct route for making a positive impact on an organization. Leaders have a broader range of influence, because of the number of people who report to them, the practices they adopt, and the decisions they make. Leaders also have a big impact on others. Demonstrating respect and empathy, focusing on well-being, and inspiring performance and results can all have positive outcomes for people. And these leadership behaviors can have a ripple effect in terms of how people treat each other and hold each other accountable in the organization and the community. As a leader, you're likely to work on issues that are more strategic than tactical, which can have a domino effect on the business. For example, decisions by the product leader can impact how the brand team markets the product and the sales team positions it with customers. 2. Pay and marketability Another reason to lead is because of the rewards. Leadership is worth the effort because it pays you back in tangible ways. In most companies, leadership responsibility is still the fastest way to increase your pay and advance your career. But in addition, you'll also be likely to amplify your personal brand and increase your marketability. Leadership is one of the most sought-after skills among hiring managers and organizations. When you're able to demonstrate that you have experience with leadership and you're skilled in directing, coaching, decision-making, inspiring, and motivating others, you'll set yourself up to shine in future roles. And you'll be able to advance within your current organization or in a new company. It's an excellent time to pursue leadership since fewer people are interested, meaning there's less competition and more opportunities. 3. Autonomy No matter what your role, you have to answer to someone. Even senior leaders or founders of companies have to answer to boards of directors or customers. But in leadership roles, you typically make decisions about what gets done and how it's prioritized. You may also benefit from greater variety in your work, and less redundancy. You'll have more control over what you do, which can be empowering. Having choice and control can be especially fulfilling, and it can also reduce stress. In two separate studies by Indiana University in 2016 and 2020, people who were in jobs that were very stressful and who had little decision-making power tended to be less healthy and had reduced longevity. On the other hand, when people were in stressful jobs but had more autonomy and control over how they did their work, they didn't have the same negative health outcomes. 4. Growth Another great reason to lead is the opportunity for growth. The process of learning new things is significantly correlated with happiness, according to a study published in the Journal of Happiness Studies. Leadership challenges your capabilities as you navigate all the needs of the team, the organization, and the competitive environment. As a leader, you may be called on to do new projects, take on additional initiatives, or expand your responsibilities. All of these are great ways to build your skills for your current job and your next job to create a career that's satisfying and meaningful.
