Haley Bieber attends the road UK launch party at the Chiltern Firehouse on May 17, 2023 in London, England.
Dave Bennett | Dave Bennett Collection | Getty pictures
Elf Beauty The Billion plans to acquire the beauty brand Road of Heli Biber in an agreement worth 1 billion as the cosmetics company seems to be further expanding in skin care.
Acquisition – LF’s largest, Factset – Million includes 800 million cash and stock, as well as an additional potential Million payment of 200 million in the next three years. The agreement is expected to close in the second quarter of the company’s financial 2026 – or this year.
. “So that level of disruption certainly caught our attention.”
In a news announcement, Byber said he was eager to be partnered with Ekkini to bring his brand to “more faces, places and places.”
“From the first day, my vision for the road is to make the essential skin care and hybrid makeup you can use every day,” Byber said. “Only three years on this journey, our partnership with ELF Beauty suggests an incredible opportunity to increase our ability to reach our community with more innovative products and expand our delivery globally.”
ELF shares rose 11% on Thursday after the company announced the acquisition and released results in the fourth quarter of its financial fiscal. The company has topped the quarterly estimates of Wall Street, but did not guide the Trump administration’s changing tariff policy. Elf gets the inadequate amount of its products from China.
On Thursday’s note, Goldman Sachs analysts said the road deal would “look positive to strategic technique, as it expands the elf with a prestigious brand and diversify its customer base.”
“Although the road is a DTC brand, we are expected to emerge into retail, including Sephora. We believe that it will further support the growth,” he said.
Why is the betting on the Ekkini Road
The road, which began in 2022, doubled its customers’ base last year and 212 million in the 12 months ended on March 31. The growth of the company is primarily through its website, but it plans to start at Sephora stores across North America and UK before the end of the year.
As part of the acquisition, he will serve as the chief creative officer and head of innovation, supervising creative, product innovation and marketing. The brand was launched with two co-founders, Michael and Lauren Ratner, but it turned it into a billion dollar brand.
Under its direction, the media value of the road earned last year became the No. 1 skin protection brand-or with the growth of 367% per year by other methods other than a paid advertisement.
Road Elf is a solid match, which has skyrocketed in recent years to its digital prowess. The company has an army of online fans and is known for its tictac marketing, which is more natural for consumers.
The company is looking to dig deeply about skin care, which is the most popular among all ages, especially the younger, leading customer of Elf. In 2023, it acquired the skin protection brand Naturium for 5 355 million. The road allows its acquisition to develop its skin protection growth and reach more income consumers.
“Elf cosmetics is about 50 6.50 at its core entry price point. The road, on average, is in the 20s, so I say that it brings different customers to the overall company, but the same method in terms of how we get and entertain them,” Amin said.
The agreement makes sense to Elf, and is a competitive move to snatch the brand before the competitors do, but it comes to the company in an uncertain and difficult time. With the expected price increase, China tariffs reduce the gain of ejaculation over time, and it will fund the Million 600 million agreement with debt during high interest rates.
Acquisition is a bet that consumers spend high -level skin care even during the economic decline or recession.
Elf defeats estimates of earnings
The announcement was made by Elf as posted on the results of the fourth quarter, which defeated Wall Street’s expectations in the upper and bottom lines.
Here’s how a beauty retailer managed compared to Wall Street anticipation based on a survey of LSEG analysts:
- Earnings per share: 78 cents set Vs. 72 cents expected
- Income: 3 333 million vs. 8 328 million expected
The company’s net revenue for the three -month period ended March 31 was 328.3 million, or 49 cents per share, a year ago .5 14.5 million or 25 cents per share. Sales have risen to 2 332.7 million, which has increased by about 4% by 1 321.1 million.
Elf’s sales have increased rapidly in recent years, but investors have expressed concern when that growth begins to slow down and the tariff threat begins to hang its business. The company has about 75% of its products from China, which currently faces a 30% duty for the US exported to the US last week, announcing a plan to increase the prices by $ 1 to compensate for the tariffs starting August 1.
If US duties in China’s imports are now 30%, it may turn into president Donald Trump Talks with Beijing. As a result, Elf said it was not providing financial 2026 views due to “widespread potential results related to tariffs.”
Amin said that the ekshini paid more than 145% of duties before Trump agreed to cut the tariffs on Chinese goods, but the costs were not coming up in the quarter and the company showed the first quarter of its financial 2026.
