NEW YORK – e.l.f. Beauty Inc. shares took a hit after revealing that Hailey Bieber’s skincare line, Rhode, failed to meet its ambitious sales projections for the quarter ending June 30.
The brand, which was acquired earlier this year in a deal valued at up to $1 billion, reported revenue of around $40.2 million, falling short of expectations and sparking concerns among investors.
While Rhode continues to post strong profit margins—roughly 33%, compared to e.l.f. Beauty’s 19%—the shortfall has raised doubts about the timing and valuation of the acquisition.
Analysts note that although the long-term outlook for Rhode remains promising, the latest figures highlight the volatility of celebrity-backed beauty ventures and the challenges of sustaining post-acquisition growth in a competitive market.
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