Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, June 6, 2025

Article Excerpt

E.L.F. BEAUTY INC., $117.66, symbol ELF on New York, sells cosmetics at below department store prices and those of specialty shops like Sephora. E.L.F. stands for eyes, lips and face. The company’s products are sold in its own E.L.F. stores, online, and at large retailers such as Target (23% of sales), Walmart (16%), Ulta Beauty (12%) and Amazon (12%). E.L.F. aims to develop its products more quickly than bigger mass-market brands, allowing it to respond rapidly to shifting consumer tastes. E.L.F. began selling online in 2004 (now accounting for 24% of revenue) but generates the majority of its sales from major retail chains (76%). Its products are generally priced between $5 and $11 (versus $30 to $54 or more for prestigious brands). Items include bath and skincare products, mineral-based makeup, professional tools, eyeliners, lipstick, glosses, blushes, bronzers, brushes and mascara. On May 28, 2025, E.L.F. announced the acquisition of Rhode, a fast-growing skincare brand founded by Hailey Bieber just three years ago. (She’s the…