Recently, according to a report by Reuters, Hailey Bieber’s beauty brand Rhode is exploring a potential sale that could value the company at over $1 billion.
Multiple sources indicate that even if Rhode soon announces an exclusive retail partnership with a major retailer, investors remain cautious about acquiring a brand tied to both a celebrity and a retailer, as this is often seen as a risky strategy.
Rhode initially launched with skincare products before expanding into makeup and accessories. The brand was founded in 2022 and reportedly sold 1 million lip treatments in its first year, generating around $100 million in revenue. In its second year, revenue reached $120 million. Although Rhode positions itself as a “masstige” (mass prestige) brand and prices continue to rise, sales in the U.S. are reportedly beginning to slow.
Despite building strong retail partnerships in major global markets (with rumors circulating for months about an impending deal with Sephora in North America), logistical challenges alone could hinder the brand’s potential to lead in the category.
In addition to Hailey Bieber’s star power, Rhode has heavily invested in marketing—recruiting high-profile figures such as Claudia Schiffer, Paloma Elsesser, and Matilda Djerf to serve as brand ambassadors.
