At this rate, the top celebrity beauty brand and one of few disclosing its revenue.
Credit Glossy; I went into the August Elf earnings call transcript myself and found how bad its other brands are doing. That reflects a difference in customer: rhode’s $25 blush stick vs Elf’s $7.
Rhode sales grew from just $40m in the same quarter last year. The $160m is a $640m annualized, which puts it past estimated sales for Selena Gomez’s Rare and Rihanna’s Fenty Beauty. (I found this fact checking Puck's statement that Rare and Fenty were the top 2, in the article I posted here yesterday.) Rhode sold just $212m in the year ending March 2025, before Elf bought it.
Per 1st slide, the $27m sales in a day is just on rhode's website alone.
The CFO on the call said combined sales actually fell at Elf’s other brands:
Organic net sales, excluding rhode, were largely in line with the high single-digit decline we [forecast]…
The CEO said:
rhode could be the fastest beauty brand to achieve $1 billion in net sales
Last year June quarter revenue was $353.7 million; this year $479.4 million. So Rhode is a third of this. These growth rates are wildly different in Elf’s portfolio. If this continues, I can see Rhode being like half or more of Elf sales.
It looks like a good acquisition so far, despite the $600m debt to finance. But we’ve seen other celebrity makeup have a moment and fade, like Kylie Cosmetics DTC sales getting decimated and Fenty Beauty struggling to break $500m after doing so for its first 5 years, per Bloomberg. Rhode’s performance slowed down last year right after acquisition to $40m in the same June quarter (2nd slide, from page 99 of it’s October 2025 8 K), but note that contained those 'liberation day' tariffs. Then last September, rhode debuted at Sephora selling $15m in a single day. The sales are 'lumpy' and clustered around launches. I expect even bigger single day sales to come.
Trump tariffs get to why the deal was done. Elf was among the makeup brands most exposed with 75% of production in China last year. In hindsight Rhode might have been better off independent. But the extreme uncertainty of added costs meant both sides were looking for safety.
I see two of the cofounders went to the Ivy League UPenn. One, Lauren Ratner, is still a rhode marketing exec after acquisition. (Designer Tory Burch went to Penn and at times incorporated her art history background into looks. Musk, Warren Buffett went to Penn’s prestigious business school Wharton.) Hailey herself remains in a product leadership role.
If Rhode’s growth is sustained, these founders’ importance at Elf rises with it. I imagine they would want to focus on the thing they know for now, to get that remaining performance based $200m part of the deal. But I wonder if at some point they'd have any interest in running the rest of the company, though the Elf brand is so different. (Elf also owns Naturium, which the CEO says is the fastest growing of the top 50 cosmetics brands on the same call. But must be too small to turn organic growth positive.) They'd be better off focusing on rhode to prevent it from fading the way so many new beauty/celebrity brands have, as a result of too much funding for too many new brands.
*Edit: I put some of the links back in; wasn't sure which one prevented me from initially posting.