Bieber has officially joined the billion-dollar beauty club.
Rhode, the skincare brand founded by Hailey Bieber in 2022, has been acquired by E.l.f. Beauty in a deal worth up to $1 billion. The sale includes $600 million in cash, $200 million in E.l.f. shares, and the potential for another $200 million if Rhode hits key growth targets over the next three years.
In an industry filled with celebrity brands that often fade fast, Rhode stands out. It brought in $200 million in sales over the past year with just a handful of products and no major retail rollout. Most of its growth came from direct-to-consumer sales, social media buzz, and a loyal online following.
When Hailey launched Rhode, there weren’t dozens of launches or seasonal drops. Just a tight, edited lineup of lip treatments, blush, and the now-famous Glazing Milk. The packaging was minimalist, the price point sat between drugstore and prestige, and the overall aesthetic felt polished and personal. A lip gloss phone case even went viral. The brand felt curated, not corporate which clicked especially with younger consumers.
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Why E.l.f. is betting on it now
E.l.f. didn’t start out as a major player. Back in 2004, it was a small online brand known for affordable makeup. But it grew fast by leaning into internet trends, offering accessible dupes, and responding quickly to what its young audience wanted.
Today, E.l.f. is a billion-dollar company. It brought in $1.3 billion in sales last year, owns brands like Naturium and Keys Soulcare (with Alicia Keys), and has posted 25 consecutive quarters of growth. But even a strong brand needs fresh energy and Rhode brings that. It speaks directly to Gen Z, lives on social media, and has built a strong community feel.
Rhode also allows E.l.f. to reach a new price tier. Most E.l.f. products sell for under $10, Rhode’s range goes up to $38. That opens the door to a different kind of customer, one who shops based on style and identity, not just price.
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Hailey’s role isn’t changing
Celebrity beauty brands are everywhere now, but not all of them last. Some launch big, then lose steam. Rhode took a slower, more thoughtful approach and Hailey stayed involved from the beginning. She’s not stepping away after the sale. She’ll remain as Rhode’s creative lead, overseeing product, marketing, and overall brand direction.
In an interview with Vogue Business, Bieber said the decision to sell wasn’t easy. “Finding a home for Rhode was a really scary process,” she said. “But as soon as I met the E.l.f. Beauty team, I could tell they had such a strong sense of community, and that spoke volumes to me.”
A growing club of star-backed beauty labels
Hailey isn’t the only celebrity who’s turned a beauty brand into serious business. Rihanna’s Fenty Beauty was valued at nearly $3 billion, according to Forbes. Kylie Jenner sold part of her cosmetics company to Coty in 2020 for $600 million. Selena Gomez’s Rare Beauty grew so fast, it helped put her on the Bloomberg Billionaires Index in 2023.
All together, celebrity beauty brands made over $1 billion in sales last year, according to Nielsen IQ. Rhode now joins that group, not just as another name on the shelf, but as one of the few to successfully cross over from social buzz to serious brand value.
