e.l.f. Beauty Inc. (NYSE: ELF) saw its stock soar 5.14% in Wednesday's trading session following two major announcements: a $1 billion acquisition deal for Hailey Bieber's Rhode brand and better-than-expected fourth-quarter financial results.
The cosmetics company announced a definitive agreement to acquire Rhode, a fast-growing multi-category lifestyle beauty brand founded by model and influencer Hailey Bieber, for $1 billion. The deal includes $800 million payable at closing ($600 million in cash and $200 million in stock) and a potential additional $200 million earnout based on Rhode's growth over the next three years. This strategic move is expected to diversify e.l.f.'s portfolio and strengthen its position in the prestige beauty market.
Additionally, e.l.f. Beauty reported strong Q4 results, with adjusted earnings per share of $0.78, surpassing the analyst consensus of $0.72. The company's revenue for the quarter came in at $332.6 million, beating estimates of $327.47 million. Despite these positive results, e.l.f. refrained from providing fiscal 2026 guidance due to uncertainties surrounding import tariffs, which could impact future performance. The company also announced plans to raise prices by $1 starting in August to mitigate the effects of inflation and tariffs.
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