Our investment guru Anne Ashworth makes YOU money by scouring the stock exchange for the finest funds and shares. She exposes how you can cash in on cosmetics ...

Looking excellent can be expensive. Lotions, potions, make-up and creams: they are all expensive. But for investors, they can likewise be extremely lucrative.

The target of among this summertime's most talked-about takeover offers is a cosmetics organization developed just three years earlier by an American model who's wed to a pop idol.

This business's products, a huge success among Gen Z, include a 'glazed-doughnut impact' lip treatment.

The $6.41 bn e.l.f. Beauty group, commemorated for its discount rate 'dupe' - or copycat - creams and comprise, is paying $1bn in shares and cash for Rhode, a charm business whose sales in the year to March were $212m.

Rhode is led by Hailey Rhode Bieber, a business owner and influencer with 55.1 m Instagram followers, an essential in an industry being interfered with by social networks. She is the other half of singer Justin and child of actor Stephen Baldwin, bro of Alec.

The excitement around the offer recommends that, if your portfolio needs a glow-up, possibly you must want to the worldwide beauty company, whose sales are forecast to reach $600bn by 2028.

Rhode, a charm company owned by design Hailey Bieber, is being obtained by e.l.f. Beauty (listed below) for $1bn

New research study from Barclays shows that the 'lipstick index', still uses.

Under this theory, in difficult times females will continue to treat themselves to a little extravagance such as a lipstick - or these days, a peptide lip treatment.

Gerrit Smit of fund supervisor Stonehage Fleming believes the human urge to look much better will constantly be with us - and for that reason assures returns for financiers.

'Beauty is a sector with indefinite sustainable development, as the desire for charm is a permanently aspect. Everyone is growing older and want to look great doing so.'

Smit highlights the sector's innovation, with its focus on developing creams and cosmetics for different markets, varying from 'tweens', the 13-year-olds with complicated skin cleaning programs, to older women combating the repercussions of aging.

Such was the enjoyment about Rhode's prospective to appeal to any ages that there was a 24pc bounce in it shares.

The purchase of Rhode will likewise enable e.l.f. (the name represents eyes, lips, face) to diversify its supply chain. The company, which makes 75pc of its varieties in China, is presently subject to 30pc tariffs in the US, and has currently been forced to raise costs.

News of the Rhode acquisition was accompanied by the announcement of 28pc increase in e.l.f.'s sales for 2025 to $1.3 bn. This sounds like an excellent rise. But sales leapt by 77pc in 2024.

Ms Bieber and e.l.f. Beauty chairman and CEO Tarang Amin

The slower growth highlights the market's different difficulties - such as Chinese customers' reluctance to invest.

This disinclination to splash the cash has actually hit the shares of the appeal power homes: Coty, Estee Lauder, L'Oreal, Shiseido and Puig, the Spanish owner of Charlotte Tilbury.

Estee Lauder shares reached $365 in December 2021. They are now back down at $68, partially due to management and other concerns - but also due to the fact that 26pc of its come from China.

Other forces are also bringing change, as Will McIntosh Whyte, fund manager at Rathbones, mentions: 'Brand loyalty is on the decrease, because social media allows start-up brands to reach large audiences and grow quickly.'

But e.l.f.'s move to snap up Rhode could suggest confidence is returning and there is an opportunity for financiers to benefit.

At least one influential and hard-headed US financier appears encouraged this the case.

Michael Burry, the hedge fund supervisor whose bet in 2008 on mortgage-backed securities was depicted in the film The Big Short, is backing revival at Estee Lauder.

His Scion Asset Management fund now holds a $13.3 m stake in Estee Lauder, owner of brands like Bobbi Brown, Clinique, Jo Malone London and Le Labo.

Who knows if Burry is a routine user of Estee Lauder Advanced Night Repair Serum? But there can be some benefit to committing some of your financial investment budget plan to the business that make the important things you love. This familiarity offers you extra insight. Here are your options.

THE BEAUTY PARADE

Among L'Oreal brand names are CeraVe, Garnier, Maybelline and the more upmarket Aesop and Lancome

L'Oreal, a EUR200bn Paris-based service, is the titan of the industry. The starting family, the Bettencourt Meyers dynasty, have a 35pc stake.

Among L'Oreal brand names are CeraVe, Garnier, Maybelline and the more upmarket Aesop and Lancome. Demand for these costly lines helped first-quarter sales to increase by 3.5 pc to EUR11.73 bn.

Smit notes L'Oreal's strengths. 'Its success is based on intense research: it spends about EUR1bn a year. Its gross revenue margins can be as high as 70pc on some products