2 months ago
24
Geoffrey Seiler, The Motley Fool
Thu, July 23, 2026 astatine 10:01 AM CDT 3 min read
E.l.f. Beauty (NYSE: ELF) hasn't fixed investors a batch to cheer astir lately, with the banal down astir 30% implicit the past year. However, that could beryllium astir to alteration arsenic the institution starts to rev up the maturation of its precocious acquired Rhode marque and grow its namesake marque into a caller category.
Growth catalysts up
E.l.f. completed its $1 cardinal acquisition of Rhode past August. At the clip of the deal, the high-end skincare enactment founded by personage Hailey Bieber had rapidly grown to implicit $200 cardinal successful sales, offering conscionable a fistful of products connected its website with small selling extracurricular of Bieber's ain fame. E.l.f. is present successful the process of ramping up Rhode's growth, which should assistance bring renewed involvement to the stock.
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Before its acquisition, Rhode had already entered an statement to commencement being sold successful LVMH's Sephora stores. Rhode saw beardown occurrence with its motorboat successful U.S. and Canadian Sephora stores, but it has present started to grow overseas. After a highly palmy debut astatine Sephora stores successful the U.K. past September, e.l.f. volition present grow the Rhode marque passim Europe, some wrong Sephora stores and online. It besides entered the Australia and New Zealand markets successful February, and began offering its products nonstop to consumers successful Mexico successful June.
In summation to expanding internationally, Rhode has besides started to grow its merchandise assortment. With its Summer 2026 collection, the marque broadened its colour cosmetic portfolio by entering the bronzer class portion introducing different caller items, similar its Highlight Milk, its first-ever skin-prep, skin-finish crossover product. This follows an earlier determination into spot attraction products, similar pimple patches.
Meanwhile, e.l.f. is besides looking to marque a large determination with its namesake brand. After disrupting the mass-market cosmetics category, the institution is present acceptable to spell aft the hairsbreadth attraction category. It said its probe showed that 77% of its customers were funny successful e.l.f. offering hairsbreadth attraction products, and that 2 limited-edition products scored precocious marks with consumers. It volition participate the class with a caller selling run with products including shampoo, conditioner, attraction oil, styling spray/cream, and a styling pick wand. The products volition beryllium sold astatine Target and done TikTok shops.
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