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E.l.f. Beauty Inc. has once again revised its full-year financial projections upward, marking the second consecutive quarter of increased optimism, fueled by an impressive 51% surge in net sales during its fiscal second quarter of 2027. This remarkable performance was significantly bolstered by the successful European launch of its Rhode skincare line at Sephora and a notable resurgence in unit sales for its flagship e.l.f. brand. The company’s consistent growth trajectory underscores its strategic agility and deep understanding of evolving consumer preferences in the competitive beauty market.
A Quarter of Strong Financial Performance
For the quarter concluding on September 30, E.l.f. Beauty reported net sales reaching $520.8 million, a substantial increase from the $343.9 million recorded in the same period of the previous fiscal year. This achievement extends the company’s impressive streak to 31 consecutive quarters of net sales growth, a testament to its sustained market momentum. CEO Tarang Amin highlighted this consistent upward trend, emphasizing the company’s ability to deliver value to consumers and shareholders alike.
The growth was not confined to a single channel or region. E.l.f. Beauty reported robust sales expansion across both its retailer and e-commerce platforms, encompassing both domestic and international markets. This broad-based success indicates a well-executed omni-channel strategy that resonates with a diverse customer base.
Strategic Acquisitions and Brand Synergies Fueling Growth
A key driver of this exceptional performance was the strategic integration of Rhode, a skincare brand acquired by E.l.f. Beauty in August 2025. Rhode contributed approximately 16 percentage points to the company’s overall growth in the month preceding its first anniversary under E.l.f. ownership on August 5. The successful expansion of Rhode into Sephora’s European footprint in September proved to be a significant catalyst, driving international sales to new heights.
Beyond the impact of Rhode, the core e.l.f. brand itself demonstrated a strong rebound. Chief Financial Officer Mandy Fields noted that organic net sales rose by approximately 35%, underscoring the enduring appeal and market relevance of E.l.f. Beauty’s foundational offerings. This dual engine of growth – the strategic acquisition of new, high-potential brands and the revitalization of established ones – positions E.l.f. Beauty for continued market leadership.
Digital Dominance: Amazon and TikTok Shop as Growth Engines
E.l.f. Beauty’s strategic embrace of digital commerce has been a cornerstone of its success. The company defines "connected commerce" as sales generated through online platforms, which accounted for a significant 31% of its total sales in the second quarter. This highlights a deliberate and effective strategy to meet consumers where they are, leveraging the expansive reach of major digital marketplaces.
In the highly competitive U.S. market, E.l.f. has solidified its position as a dominant force. The brand has achieved the distinction of being the top cosmetics brand on Amazon and the most actively searched beauty brand on the platform. Furthermore, its presence on TikTok Shop has seen remarkable ascent, with E.l.f. Cosmetics climbing to the number two spot in the cosmetics category. This rapid adoption and engagement on social commerce platforms signal E.l.f.’s adeptness at capturing the attention of younger, digitally native consumers.
This digital prowess is reflected in E.l.f. Beauty’s rankings within industry benchmarks. The company holds the 328th position in Digital Commerce 360’s Top 1000 Database, which meticulously ranks North America’s leading online retailers by annual web sales. Additionally, E.l.f. Beauty is recognized at No. 327 in Digital Commerce 360 and ReFiBuy’s AI Commerce Rankings, indicating its forward-thinking adoption of artificial intelligence in its e-commerce operations. Amazon itself is a significant player, ranking third in Digital Commerce 360’s Global Online Marketplaces Database, underscoring the scale of opportunity within this ecosystem.
Innovating Through Digital Channels
E.l.f. Beauty is not merely leveraging existing digital platforms but is also utilizing them as testing grounds for new product categories. In October, the company launched "E.l.f. Pop," a new fragrance and body collection, exclusively on Amazon and TikTok Shop. This strategic rollout, with plans for additional scents later in the fiscal year, demonstrates E.l.f.’s commitment to exploring new revenue streams and engaging consumers with innovative offerings through its most impactful digital channels.
The company also introduced E.l.f. Hair in July, featuring a six-product assortment priced at $10 or less, exclusively at Target. This initiative has already positioned E.l.f. among Target’s top 20 hair care brands, with approximately half of its buyers being new to the E.l.f. brand. This indicates a successful strategy of attracting new customer segments through accessible pricing and targeted product development.
Rhode’s Direct-to-Consumer Strength and Influencer Collaborations
The direct-to-consumer (DTC) channel for Rhode remains a vital component of its growth strategy, complementing its expanding retail presence. CEO Tarang Amin pointed to a highly successful limited-edition collection with influencer Alexandra Leclerc, which garnered a waitlist exceeding 200,000 individuals and sold out almost entirely within an hour. This underscores the power of strategic influencer partnerships and the strong demand for Rhode’s exclusive offerings. Crucially, E.l.f. Beauty has not observed an increase in customer acquisition costs for Rhode, suggesting efficient and cost-effective growth within this segment.
Rhode’s European Debut Ignites International Sales Surge
The strategic expansion of Rhode into international markets has proven to be a game-changer. In September, Rhode made its debut at Sephora stores across 19 European countries. Amin described this launch as "the biggest launch in Sephora’s history," a significant endorsement of the brand’s appeal. He further noted that Rhode has quickly become the top-performing brand within Sephora’s European portfolio, boasting one of the highest repeat purchase rates observed by the retailer. Despite this monumental success, Rhode is currently available in only about 40% of Sephora locations globally, indicating substantial untapped potential for future international expansion.
This international push significantly boosted E.l.f. Beauty’s global performance. International net sales surged by an impressive 165% in the second quarter, contrasting with a 25% rise in U.S. net sales. On a trailing 12-month basis, international sales now constitute approximately 25% of net sales, a notable increase from the roughly 20% reported in May. While this international penetration is growing, it still lags behind legacy beauty peers, which typically derive around 70% of their sales from abroad. This presents a clear opportunity for E.l.f. Beauty to further scale its global footprint.
Mandy Fields also confirmed improvements in the core e.l.f. brand’s performance in its key international markets, including Canada, the United Kingdom, and Germany, signaling a holistic global growth strategy.
Revised Fiscal 2027 Outlook Reflects Continued Momentum
In light of its robust performance, E.l.f. Beauty has elevated its full-year fiscal 2027 net sales growth forecast to a range of 22% to 24%. This represents a significant upward revision from the previous projection of 18% to 20% set last quarter and a substantial increase from the 12% to 14% outlook provided in May.
The company anticipates a moderated growth rate in the latter half of the fiscal year, with second-half net sales growth projected to be between 7% and 10%. Within this period, the third quarter is expected to outperform this range, while the fourth quarter is projected to fall below it. Fields attributed this anticipated slowdown in Q4 to a comparison against a strong performance in the prior year, which included significant strategic initiatives such as e.l.f.’s expanded presence at Ulta Beauty, its launch with dm in Germany, Rhode’s debut at MECCA in Australia and New Zealand, and Naturium’s initial foray into Walmart.
Despite the projected slowdown, Fields emphasized that the 7% to 10% growth outlook for the second half of the year remains substantially ahead of the broader beauty category, which is currently experiencing low-single-digit growth. This continued outperformance underscores E.l.f. Beauty’s competitive advantage and its ability to capture market share even in a mature industry.
Broader Implications and Future Outlook
E.l.f. Beauty’s consistent ability to exceed financial expectations and its strategic expansion into new brands and markets underscore a compelling growth narrative. The company’s adeptness at leveraging digital platforms, particularly Amazon and TikTok Shop, not only drives sales but also serves as a crucial avenue for product innovation and customer acquisition. The successful integration and international rollout of Rhode further validate E.l.f.’s acquisition strategy and its capacity to nurture and scale acquired brands.
The company’s forward-looking approach, coupled with its strong execution, positions it favorably to navigate the dynamic beauty landscape. While the projected moderation in the second half of fiscal 2027 is a natural consequence of lapping previous strong performances, the overall growth trajectory remains exceptionally strong and significantly outpaces the industry. E.l.f. Beauty’s continued investment in digital innovation, strategic brand development, and international expansion are key pillars that will likely sustain its impressive momentum in the coming quarters. The company’s ability to consistently deliver value to consumers while achieving robust financial results solidifies its position as a leading force in the global beauty industry.
Pevita Pearce
Siti Muinah
