Hailey Bieber's Rhode brand to increae E.l.f. revenue by $200 million this year, CEO says

Core Insights - E.l.f. Beauty's acquisition of Rhode is projected to significantly boost annual sales by $200 million in the current fiscal year, highlighting Rhode as a key growth driver for E.l.f. [1][2] - The acquisition, finalized for $1 billion, is expected to generate $300 million in revenue annually after Rhode's launch in Sephora stores, marking the largest brand launch in Sephora's North American history [2][3] Financial Performance - E.l.f. reported a net income of $3 million (5 cents per share) for the quarter ending September 30, a decline from $19 million (33 cents per share) a year earlier, despite strong sales from Rhode and other channels [4] - Total sales increased to $344 million, reflecting a 14% rise from $301 million the previous year, although the company missed revenue estimates [4][9] - The company's gross margin fell by 1.65 percentage points due to increased tariff costs, leading to an 84% drop in net income [5][6] Future Outlook - E.l.f. anticipates full-year revenue between $1.55 billion and $1.57 billion, indicating an 18% to 20% growth, but below the $1.65 billion expected by analysts [7][8] - Rhode's contribution to sales is estimated to account for approximately 13% of the projected revenue, underscoring the strategic importance of the acquisition [8] - Adjusted earnings per share are expected to be between $2.80 and $2.85, significantly lower than the $3.58 forecasted by analysts [8]