e.l.f. Beauty posts 51% sales growth, raises outlook
e.l.f. Beauty reported 51% sales growth to $520.8 million, beating estimates and raising full-year guidance to over $2 billion on strong international expansion.
Based on reporting by Global Cosmetics News (Global Cosmetics News) and Jang Won Lee (en.infomaxai).
e.l.f. Beauty, the U.S. value cosmetics company, reported a significant surge in performance for its second quarter of fiscal 2027, posting net sales of $520.8 million. This figure represents a 51% year-over-year increase and marks the company’s 31st consecutive quarter of sales growth. Following the release, e.l.f. Beauty raised its full-year revenue outlook to between $2.00 billion and $2.03 billion, projecting annual growth of 22% to 24%.
What happened in the latest earnings report
The company’s financial results significantly exceeded analyst expectations. According to CNBC, e.l.f. Beauty reported adjusted earnings per share (EPS) of $1.21, more than double the Wall Street consensus estimate of $0.60. This performance marked the fourth consecutive quarter in which the company surpassed consensus EPS expectations. Net income for the period reached $33 million, or $0.50 per share, a substantial improvement from the $3 million, or $0.05 per share, reported in the same quarter last year.
Growth was broad-based, driven by strength across both U.S. retail and e-commerce channels as well as international markets. CEO Tarang Amin noted that the company saw "strength across the portfolio," highlighting that e.l.f. is currently the most-searched beauty brand on TikTok Shop and holds the No. 2 position in cosmetics on the platform.
Key financial figures
Net Sales: $520.8 million (up 51% year-over-year)
Adjusted EPS: $1.21 (vs. $0.60 estimate)
Full-Year Sales Guidance: Raised to $2.00 billion–$2.03 billion
Full-Year EPS Guidance: Raised to $3.82–$3.86
Gross Margin: Expanded to 71%
Why it matters for the beauty industry
The results underscore the effectiveness of e.l.f. Beauty’s strategy to combine mass-market cosmetics with premium skincare. The company’s recently acquired skincare brand, Naturium, delivered strong results, while the rhode brand, also acquired by the company, outperformed revenue thresholds embedded in its earnout agreement. Rhode has expanded internationally through Sephora, with the brand now stocked in approximately 40% of the retailer’s global stores.
International sales currently account for about 25% of e.l.f. Beauty’s total revenue, a figure management suggests leaves significant room for future growth. The company also reported that gross margin expanded by roughly 160 basis points to 71%, driven by lower year-over-year tariffs, favorable product mix, and approximately 30 basis points of benefit from IEEPA tariff refunds.
What this means for consumers and investors
For consumers, the financial strength has translated into lower prices. e.l.f. Beauty used tariff refund proceeds, expected to total $55 million annually, to reduce prices by $1 on approximately 10% of its product portfolio. This move follows earlier tariff-related price increases and aims to strengthen unit sales momentum. For investors, the stock responded positively to the news, with shares surging over 4% in after-hours trading to $118.90, up $5.27 from the regular session close.
The company’s ability to maintain high margins while investing in price reductions highlights the efficiency of its supply chain. However, investors may monitor whether the tariff refund tailwind and rhode’s momentum can sustain into the back half of the fiscal year, as well as whether selling, general, and administrative costs continue to rise alongside revenue. As explained in our guide on how to read an earnings report, such operational details are critical for assessing long-term viability.
What happens next
e.l.f. Beauty continues to expand its digital footprint, with e.l.f. Cosmetics growing across Amazon and TikTok Shop while introducing new fragrance and hair care categories. The company’s performance demonstrates how a diversified portfolio spanning different consumer segments can support revenue growth. With full-year guidance now implying 22% to 24% growth, the market will be watching to see if the company can maintain this pace as it navigates global retail partnerships and digital distribution strategies.
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