Introduction to E.l.f. Beauty’s Acquisition of Rhode

Hailey Bieber attends the Rhode UK launch party with Hailey Bieber at Chiltern Firehouse on May 17, 2023 in London, England. E.l.f. Beauty announced on Wednesday plans to acquire Hailey Bieber’s beauty brand Rhode in a deal worth up to $1 billion as the cosmetics company looks to expand further into skincare.

Details of the Acquisition

The acquisition – E.l.f.’s biggest ever, according to FactSet – is comprised of $800 million in cash and stock, plus an additional potential $200 million payout based on Rhode’s performance over the next three years. The deal is expected to close in the second quarter of the company’s fiscal 2026 — or later this year. "I’ve been in the consumer space 34 years, and I’ve been blown away by seeing this brand over time. In less than three years, they’ve gone from zero to $212 million in net sales, direct-to-consumer only, with only 10 products. I didn’t think that was possible," CEO Tarang Amin told CNBC in an interview. "So that level of disruption definitely caught our attention."

Hailey Bieber’s Statement

In a news release, Bieber said she’s excited to partner with E.l.f. to bring her brand to "more faces, places, and spaces." "From day one, my vision for rhode has been to make essential skin care and hybrid makeup you can use every day," said Bieber. "Just three years into this journey, our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally."

E.l.f. Shares and Quarterly Results

E.l.f. shares dropped about 10% in extended trading after the company announced the acquisition and released results for its fiscal fourth quarter. The company topped Wall Street’s quarterly estimates, but did not offer guidance due to the Trump administration’s changing tariff policy. E.l.f. gets a disproportionate amount of its merchandise from China.

Why E.l.f. is Betting on Rhode

Launched in 2022, Rhode has more than doubled its customer base over the past year and generated $212 million in revenue in the 12 months ended March 31. The company’s growth has primarily come through its website, but it plans to launch in Sephora stores throughout North America and the U.K. before the end of the year. As part of the acquisition, Bieber will serve as Rhode’s chief creative officer and head of innovation, overseeing creative, product innovation and marketing.

E.l.f.’s Growth Strategy

Under her direction, Rhode last year became the No. 1 skincare brand in earned media value — or exposure through methods other than paid advertising — with 367% year-over-year growth. Rhode is a solid match for E.l.f., which has seen growth skyrocket in recent years in large part to its digital prowess. The company has legions of online fans and is known for TikTok marketing that feels more natural to consumers. The company is also looking to dig deeper into skincare, which has become more popular with all age groups, particularly E.l.f’s younger, core consumer.

E.l.f.’s Quarterly Performance

E.l.f. made the announcement as it posted fiscal fourth quarter results, which beat Wall Street’s expectations on the top and bottom lines. The company’s reported net income for the three-month period that ended March 31 was $28.3 million, or 49 cents per share, compared with $14.5 million, or 25 cents per share, a year earlier. Sales rose to $332.7 million, up about 4% from $321.1 million.

Conclusion

E.l.f. Beauty’s acquisition of Rhode is a strategic move to expand its presence in the skincare market. With Rhode’s impressive growth and Hailey Bieber’s influence, the partnership is expected to bring significant benefits to both companies. As E.l.f. continues to navigate the challenges of tariffs and global trade, its focus on digital marketing and skincare innovation is likely to drive future growth.

FAQs

Q: What is the value of the acquisition deal between E.l.f. Beauty and Rhode?
A: The acquisition deal is worth up to $1 billion, comprising $800 million in cash and stock, plus an additional potential $200 million payout based on Rhode’s performance over the next three years.
Q: Who will lead Rhode after the acquisition?
A: Hailey Bieber will serve as Rhode’s chief creative officer and head of innovation, overseeing creative, product innovation, and marketing.
Q: What is the expected impact of the acquisition on E.l.f.’s business?
A: The acquisition is expected to drive growth for E.l.f. in the skincare market, particularly among younger consumers, and expand its digital presence.
Q: How did E.l.f. perform in its fiscal fourth quarter?
A: E.l.f. beat Wall Street’s expectations on the top and bottom lines, with net income of $28.3 million, or 49 cents per share, and sales of $332.7 million, up 4% from the previous year.

Introduction to JPMorgan’s New Branch Format

JPMorgan Chase thinks it has cracked the code on managing more money for America’s millionaires. It’s not a new financial product, a novel software program, or an enticing sign-up bonus. Instead, it’s a refurbished take on an old concept — the brick-and-mortar bank branch — along with new standards for service that are at the heart of its aspirations.

The New Branches

The bank is unveiling 14 of these new format branches — each acquired when JPMorgan took over First Republic in 2023 — in tony ZIP codes in New York, California, Florida, and Massachusetts, including Napa, Palm Beach, and Wellesley Hills. It’s part of JPMorgan’s push to convince affluent Americans, many who already use Chase checking accounts or credit cards, that the bank is ready to manage their millions.

JPMorgan’s Position in Wealth Management

JPMorgan is the country’s biggest bank by deposits and assets and has a top share in areas as disparate as Wall Street trading and retail credit cards. But one of the only major categories where it isn’t a clear leader is in wealth management; peers like Morgan Stanley and Bank of America exceed it there. While half of the 19 million affluent households in the U.S. bank with JPMorgan, it has just a 10% share of their investing dollars, according to Jennifer Roberts, CEO of Chase Consumer Banking.

The Opportunity for Growth

"We have this giant opportunity to convince customers to have their wealth management business with us in addition to their deposit relationship," Roberts said in a recent interview. Helped by its acquisition of First Republic, which was known for catering to rich families living on either coast, JPMorgan decided to launch a new tier of service. Called J.P. Morgan Private Client, it is anchored by the new physical locations, of which there will be 31 by the end of next year.

The J.P. Morgan Private Client Experience

The service comes with its own mobile banking app, but its main appeal is the in-person experience: Instead of being handed off to multiple employees like at a Chase branch, J.P. Morgan Private Client members are assigned to a single banker. "What First Republic did really well was deliver a concierge-level of service where if you have an issue, a person owned it for you and you didn’t have to worry about it," Roberts said. The price of entry: at least $750,000 in deposits and investments, though Roberts said the bank is aiming for those with around $2 million to $3 million in balances.

Quiet Opulence

The new locations, dubbed J.P. Morgan Financial Centers, have a warm feel and an earth-tone color palette that intentionally sets them apart from the nearly 5,000 Chase branches operated by the bank. During a recent visit to a Manhattan location, the vibe is family office-meets hotel, with soaring ceilings, living room-style seating areas, and art-filled meeting rooms scattered over two floors. Gone is the traditional row of bank tellers; there is instead a concierge desk and a solitary ATM machine.

The Design and Environment

The design elements and hushed environment are "really meant to illustrate that we’re there to have a more serious, less-transactional conversation about your wealth planning over the course of time," said Stevie Baron, JPMorgan’s head of affluent banking. Those conversations involve planning for long-term goals and examining clients’ portfolios to see whether they are on track to reach them, he said. Elements of the new high-end branch format could find their way to regular Chase branches, especially the 1,000 or so that are in high-income areas, Baron said.

Challenges and Expectations

JPMorgan executives have said the bank’s branch network has already succeeded as a feeder into the firm’s wealth management offerings. The new service tier — which sits above the bank’s Chase Private Client offering, which is for those with at least $150,000 in balances and is delivered in the regular branches — is expected to help JPMorgan’s retail bank double client assets from the $1.08 trillion it reached in March. "Obviously it’s a big challenge, because clients already have their established wealth managers, but it’s something that we’ve been making really strong progress in," Roberts said.

Creating Awareness

But attempting to create a new, more luxurious brand from a mainstream one — think the difference between Toyota and its luxury brand Lexus — is not without its risks. Or at least, momentary confusion. So far, the two flagship financial centers in New York and San Francisco opened late last year haven’t seen heavy foot traffic, Roberts admitted. "Our biggest challenge is that we don’t have people walking in because they don’t really understand what they are," Roberts said. "So we just need to get the awareness out there."

Conclusion

JPMorgan’s new branch format and service tier are part of its efforts to increase its share in the wealth management market. With its focus on providing a high-end, concierge-like experience, the bank aims to attract and retain affluent clients. While there are challenges to creating awareness and differentiating the new brand, JPMorgan is confident in its ability to deliver a unique and valuable experience to its clients.

FAQs

Q: What is JPMorgan’s new branch format?
A: JPMorgan’s new branch format is a refurbished take on the traditional brick-and-mortar bank branch, with a focus on providing a high-end, concierge-like experience for affluent clients.
Q: What is the price of entry for J.P. Morgan Private Client?
A: The price of entry for J.P. Morgan Private Client is at least $750,000 in deposits and investments, though the bank is aiming for those with around $2 million to $3 million in balances.
Q: How many new branches will JPMorgan open?
A: JPMorgan will open 31 new branches by the end of next year, with 14 of them being unveiled in the initial launch.
Q: What is the goal of JPMorgan’s new service tier?
A: The goal of JPMorgan’s new service tier is to help the bank’s retail bank double client assets from the $1.08 trillion it reached in March.
Q: How will JPMorgan create awareness for its new branch format?
A: JPMorgan will create awareness for its new branch format through various marketing efforts, including promoting the unique experience and services offered by the new branches.

Shares of movie theater companies soared on Tuesday following a record-breaking Memorial Day Weekend at the domestic box office. AMC saw its stock jump more than 23%, while shares of Marcus Theatres’ parent company Marcus Corporation climbed 10% and Cinemark stock leaped nearly 4%.

Tandem Releases of New Films

The tandem releases of Disney’s live-action “Lilo & Stitch” and Paramount’s “Mission Impossible — The Final Reckoning” alongside holdovers Disney and Marvel’s “Thunderbolts,” Warner Bros.’ “Sinners” and “Final Destination Bloodlines” led to an estimated $326 million haul, the highest Memorial Day box office ever, according to data from Comscore. It is also more than double the $132 million in ticket sales collected last year during the same period.

Box Office Performance

“Everything came together at the right time with two eagerly anticipated, positively reviewed tentpoles courting a diverse range of audiences,” said Shawn Robbins, director of analytics at Fandango and founder of Box Office Theory. “This record holiday frame continues a box office winning streak which began in the spring and has now grown into bona fide momentum for what will likely be a $4 billion-plus summer at domestic cinemas thanks to a string of promising blockbusters on the slate.”

Theater Performance

AMC, Cinemark and Marcus Theatres each posted their best Memorial Day Weekend ticket revenues of all time, as well as record food and beverage sales for the holiday. “Finally it would appear that our industry has turned a corner,” Adam Aron, CEO of AMC, said in a statement. “Since early April, weekend after weekend, moviegoers have been demonstrating their preference for theatrical moviegoing. A record-setting Memorial Day holiday is yet another sign of the continued strength and relevance of moviegoing in 2025.”

Film Performance

“Lilo & Stitch” tallied $183 million during the four-day frame, leading the pack, while the eighth installment in the Mission Impossible franchise scooped up $77 million. “Final Destination Bloodlines” took in $23.9 million, “Thunderbolts” added $11.8 million and “Sinners” snared $11 million, Comscore reported.

Summer Outlook

The combination of new product and strong carryover from previously released films fueled the weekend, Chad Paris, chief financial officer at Marcus Corp, told CNBC. “This is the first time this year where I would say we’ve had a fulsome amount of product for the weekend,” he said. “And we’re now getting into the stretch in the calendar where we’ll have a steady cadence of product releases and across genres, a lot of different products for people to go see.”

Upcoming Releases

Over the summer period, which ends Labor Day Weekend, the domestic box office will see the release of Universal’s live-action version of “How to Train Your Dragon,” a new Disney and Pixar feature “Elio,” the hotly anticipated “Jurassic World Rebirth,” Warner Bros.’ “Superman” reboot, and Disney and Marvel’s “The Fantastic Four: First Steps.” In between these tentpoles are a slew of low-and-mid budget films across genres like horror, drama, comedy and sports.

Box Office Projections

“Every other studio and every other movie on the horizon over the next few weeks are going to ride a wave and benefit from the performance of the past couple of months,” said Paul Dergarabedian, senior media analyst at Comscore. “We’re going to have one hell of a summer and if Memorial Weekend is any indication, we’re certainly looking at a $4 billion plus summer at potentially $4.2 billion plus and that’s great news after a summer of 2024 that failed to reach that milestone.”

Conclusion

The record-breaking Memorial Day Weekend at the domestic box office is a positive sign for the movie industry, with a strong lineup of films scheduled for release over the summer. The combination of new product and strong carryover from previously released films is expected to drive box office revenue to over $4 billion.

FAQs

Q: What was the total box office revenue for the Memorial Day Weekend?
A: The total box office revenue for the Memorial Day Weekend was an estimated $326 million.
Q: Which film led the box office over the Memorial Day Weekend?
A: “Lilo & Stitch” led the box office over the Memorial Day Weekend, tallying $183 million.
Q: What is the projected box office revenue for the summer?
A: The projected box office revenue for the summer is over $4 billion, potentially reaching $4.2 billion.
Q: What films are scheduled for release over the summer?
A: Over the summer, films such as Universal’s live-action version of “How to Train Your Dragon,” a new Disney and Pixar feature “Elio,” the hotly anticipated “Jurassic World Rebirth,” Warner Bros.’ “Superman” reboot, and Disney and Marvel’s “The Fantastic Four: First Steps” are scheduled for release.