e.l.f. Beauty's recent Rhode acquisition increases debt and risk, especially as net sales growth slowed to just 4% last quarter. The deal may not align with ELF's core low-price segment, raising concerns about product fit and long-term brand synergy. Heavy reliance on China for production and lack of FY26 guidance add significant uncertainty to the outlook.
Shares of e.l.f. are on pace for their highest single-day return since the company went public back in 2016, up approximately 25% as of 2:30 EST trading on May 29.
elf Beauty Inc (NYSE: ELF) rallied as much as 30% this morning after announcing a $1 billion deal with Hailey Bieber. elf is buying the influencer's skincare and cosmetics brand, Rhode, in what is being touted as one of the biggest celebrity beauty transactions to date.
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