elf Beauty Surges to 161st in Trading Volume Despite Stock Price Decline

On May 28, 2025, e.l.f. Beauty (ELF) experienced a significant surge in trading volume, with a turnover of 5.23 billion, marking a 35.27% increase from the previous day. This surge positioned e.l.f. Beauty as the 161st most traded stock of the day. However, despite the high trading volume, the stock price of e.l.f. Beauty declined by 1.33%.

e.l.f. Beauty has announced a definitive agreement to acquire rhode, a fast-growing lifestyle beauty brand founded by Hailey Bieber. This acquisition is valued at $1 billion, with $800 million payable at closing in a combination of cash and stock, and an additional potential earnout consideration of $200 million based on the brand's future growth over a three-year period. The deal is expected to close in the second quarter of Fiscal 2026, subject to customary closing conditions and regulatory approvals.

The acquisition of rhode aligns with e.l.f. Beauty's strategy of diversifying its portfolio and expanding into the prestige beauty channel. rhode, known for its high-performance, skin-focused products, has seen remarkable growth, more than doubling its consumer base over the past year and generating $212 million in net sales in the 12 months ended March 31, 2025. The brand's products are currently available on rhodeskin.com, with plans to launch its first physical in-store partnership with retailer Sephora in North America and the U.K. before the end of the year.

Hailey Bieber will continue her role as Founder and additionally serve as rhode’s Chief Creative Officer and Head of Innovation, overseeing creative, product innovation, and marketing. She will also act as a Strategic Advisor to the combined companies. Bieber's influence, paired with the brand’s innovative marketing strategy, has fueled rhode to be the No. 1 skin care brand in Earned Media Value in 2024, representing 367% year-over-year EMV growth.

e.l.f. Beauty has taken a disciplined approach in pursuing strategic extensions that leverage the company’s strengths and has continued to thoughtfully diversify its business. The acquisition of rhode marks further diversification of e.l.f. Beauty’s business into the prestige beauty channel and into newer retail partners, like Sephora, the world’s leading global prestige retailer.