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Beauty brand reports lower annual turnover but continues building long-term brand equity
Financials
08 October, 2025
Table of contents
Rhode’s financial performance for 2024 reflects a year of recalibration in the brand’s growth trajectory. Revenues contracted by almost a quarter compared to 2023, with topline sales remaining above USD 12 million. This marks the first major slowdown since the brand’s rapid initial scale-up, suggesting a shift from early hype-driven momentum to a more stabilised market position.
Despite the decline, Rhode continues to demonstrate resilience in the competitive beauty landscape. Maintaining double-digit million turnover only two years after launch highlights the brand’s strong consumer resonance. Rhode’s strategic investments in product expansion, controlled distribution, and high-impact marketing campaigns indicate a focus on strengthening long-term equity rather than chasing short-term sales spikes.
Rhode’s 2024 revenues stood at $12,3 million, down from $16,3 million in 2023. This represents a -24,5% year-on-year decline. The contraction reflects both a normalisation after the initial surge of brand hype and a recalibration of consumer demand in the direct-to-consumer beauty segment.
| Metric | 2024 | 2023 | Δ 2024/2023 |
|---|---|---|---|
| Revenue | $12,3 million | $16,3 million | -24,5 % |
Placed in context, Rhode’s results highlight both its strengths and its challenges:
Scale disadvantage: Established challengers like E.l.f. Beauty generated more than $300 million in quarterly revenues in 2025, while Glossier exceeded $100 million annually after restructuring and relaunching into wholesale. Compared to these, Rhode’s scale remains modest.
Growth trajectory: While Rhode contracted in 2024, industry benchmarks point to growth. The global skincare market expanded at low single digits, signalling Rhode’s decline was brand-specific rather than market-wide.
Valuation gap: Beauty Independent reported in 2024 that Rhode could potentially reach a $1 billion valuation if it sustained strong growth. Current revenues do not yet justify such multiples, but the brand’s cultural influence, celebrity-driven marketing, and early consumer traction mean the path is not impossible. Achieving that valuation will require not only expanding its product portfolio but also building more stable, recurring sales channels.
2024-2025 marked a step-change for Rhode, with disciplined product extensions, a major retail move, and corporate realignment under E.l.f. Beauty.
15 June 2023: Launch of Glazing Milk, a barrier-support essence that expanded Rhode’s skincare portfolio beyond its debut Peptide Lip Treatment. This marked the brand’s first step toward building a more comprehensive routine.
Marketing remained founder-led, with Hailey Bieber fronting all campaigns and leveraging her personal platforms to sustain visibility.
Rhode remained exclusively direct-to-consumer, reinforcing its image as a tightly curated beauty brand.
20 June 2024: Launch of Pocket Blush, Rhode’s first makeup product, positioned as an on-the-go cream blush in six shades. This extended the brand into hybrid colour, targeting a broader audience beyond skincare.
Rhode amplified earned media presence, becoming the #1 skincare brand by earned media value (EMV) in 2024, according to industry trackers. Campaigns and TikTok virality were central drivers, with Hailey Bieber’s personal influence remaining a key growth engine.
Revenues, however, contracted by -24,5% YoY, signalling volatility in consumer demand despite brand visibility.
28 May 2025: E.l.f. Beauty announced the acquisition of Rhode in a $1 billion deal ($800 million upfront + $200 million earnout). Hailey Bieber was appointed Chief Creative Officer & Head of Innovation, while co-founders continued in senior operational roles.
4 September 2025: Rhode launched in Sephora U.S. and Canada, described by e.l.f. as the largest Sephora skincare rollout in North America.
Within its first days (4-7 September), Rhode ranked among Sephora’s top-ten skincare brands online, reaching c. 2,8% market share, with over 60% of shoppers being first-time Rhode customers.
A U.K. Sephora launch was scheduled for autumn 2025, signalling Rhode’s first international retail expansion.
Rhode’s 2024 results highlight the growing pains of a young beauty brand navigating the transition from early buzz to sustained performance. The decline of nearly a quarter in annual revenues reflects the limits of hype-driven sales in a saturated market, but the brand has nonetheless retained cultural relevance and consumer trust, with turnover still surpassing USD 12 million only two years post-launch.
The developments of 2025 mark a decisive turning point. The USD 1 billion acquisition by E.l.f. Beauty secures Rhode the financial backing, operational infrastructure, and retail access needed to scale. The September rollout into Sephora has already expanded Rhode’s reach beyond its original DTC core, attracting a high proportion of first-time buyers and positioning the brand for accelerated volume growth. With a U.K. launch on the horizon, the company is entering its first true phase of internationalisation.
Looking ahead, Rhode’s ability to sustain momentum will depend on three critical factors. First, expanding its product pipeline beyond lip and blush heroes into full skincare and colour routines, establishing itself as a multi-category brand. Second, balancing exclusivity with accessibility as it scales in Sephora and potentially other retailers worldwide. Third, maintaining high levels of earned media and consumer engagement without over-reliance on Hailey Bieber’s personal brand.
If Rhode can execute on these priorities, the brand could evolve from a celebrity-led start-up into a global player in premium skincare and colour cosmetics. The 2024 revenue contraction underscores the risks, but the strategic steps of 2025 have laid a stronger foundation for long-term growth.
Cover Image: Runway Fashion Collective
Read the full Rhode brand report Here.
Interested in financial insights from other top luxury brands?
Read the Navigating Divergence: Financial Highlights for L'Oreal SA, The Estee Lauder Companies Inc., and Shiseido Company, Limited from 2021-2024 here,
The Estee Lauder Companies Inc. 2024 Financial Report here
Coty, Inc. 2024 Financial Report here.
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