e.l.f. Beauty sales jump 51% as rhode adds 16 points; outlook raised
By Simran KaurFashion Writer, Peepals Shakti
Representative image: dapictures_team / Pixabay
e.l.f. Beauty's quarterly net sales rose 51% to $520.8 million, reported on 4 November 2026, with rhode adding about 16 points; full-year guidance was raised.
What Happened
e.l.f. Beauty, the US maker of low-priced cosmetics and skincare, reported net sales of $520.8 million for its fiscal second quarter ended 30 September 2026, up 51% from a year earlier, in results released on Wednesday, 4 November 2026. About 35 percentage points of the growth came from its existing business and about 16 points from rhode, the skincare brand that e.l.f. acquired. The company raised its full-year sales growth forecast to 22% to 24%, from 18% to 20%. Revenue fell short of the roughly $535.8 million analysts had expected, but adjusted earnings per share of $1.21 were well above estimates.
Key Facts
- Net sales: $520.8 million in the quarter to 30 September 2026, up 51% year on year.
- Organic growth was about 35%; rhode added about 16 percentage points.
- Fiscal 2027 net sales growth guidance raised to 22%-24% from 18%-20%; the original May guidance was 12%-14%.
- Adjusted EBITDA guidance: $421 million to $427 million; adjusted EPS guidance $3.82 to $3.86, up from $3.50 to $3.55.
- Adjusted EPS for the quarter was $1.21 against an expected $0.62; revenue missed the roughly $535.8 million estimate.
- The company expects second-half sales growth of about 7% to 10%, and gross margin to fall year on year as rhode expands into retail stores.
- It was the second guidance raise of the fiscal year.
Why It Matters
e.l.f. sells make-up and skincare at low prices and leans on digital platforms to reach shoppers. A 51% jump in quarterly sales, its 31st consecutive quarter of growth, shows how much demand there is for affordable beauty brands.
The rhode deal is central to the story. Buying rhode gave e.l.f. a second, skincare-focused brand, and its contribution of about 16 points to growth shows how much it is already adding. The cost shows up elsewhere: the company expects gross margins to fall as rhode moves from online sales into physical stores, where retailers take a share.
The mixed reaction to the numbers is also instructive. Sales were slightly below what analysts had pencilled in, but profit per share was nearly double expectations and the company raised its outlook for the second time this year. For investors, guidance often matters more than one quarter, which is why the raise drew attention.
For India's beauty industry, where young founders are building digital-first, affordable brands and established players are buying celebrity and founder-led labels, e.l.f.'s results show the same playbook working at a much larger scale: low prices, heavy use of social media, and acquisitions of brands with loyal followings.
Peepals calculation: Net sales of $520.8 million after 51% growth imply year-earlier sales of about $345 million (520.8 ÷ 1.51 ≈ 344.9). rhode's 16 points of growth therefore equal roughly $55 million of extra sales (0.16 × 344.9 ≈ 55). The revenue miss was about $15 million, or 2.8% below the $535.8 million estimate (15 ÷ 535.8 ≈ 0.028). Our calculation from the reported figures.
| Measure | Figure |
|---|---|
| Q2 FY27 net sales | $520.8 million (+51%) |
| Organic growth | About 35% |
| rhode contribution | About 16 percentage points |
| FY27 sales growth guidance | 22%-24% (was 18%-20%) |
| FY27 adjusted EPS guidance | $3.82-$3.86 (was $3.50-$3.55) |
Impact
Short-term: The higher guidance supports confidence in e.l.f.'s growth, while the expected margin squeeze from rhode's retail expansion will be watched in the next quarters.
Long-term: If rhode keeps growing in stores, e.l.f. could build a second large brand beside its own, strengthening its position against bigger, older beauty groups.
Who is affected: e.l.f. shareholders and employees, beauty retailers stocking rhode, rival mass and prestige beauty brands, and shoppers looking for low-priced cosmetics.
Key Takeaway
e.l.f. Beauty's quarterly sales jumped 51% to $520.8 million, helped by about 16 points from rhode, and the company raised its full-year growth forecast to 22%-24%.
Questions and Answers
How much did e.l.f. Beauty's sales grow in Q2 FY27?
Net sales rose 51% to $520.8 million in the quarter ended 30 September 2026, reported on 4 November 2026.
How much did rhode add to e.l.f.'s growth?
About 16 percentage points of the 51% growth came from rhode; the rest, about 35%, was organic.
Did e.l.f. raise its forecast?
Yes. It raised its fiscal 2027 net sales growth guidance to 22%-24% from 18%-20%, its second raise of the year.
Did e.l.f. beat expectations?
Partly. Adjusted earnings per share of $1.21 beat the $0.62 estimate, but revenue was below the roughly $535.8 million analysts expected.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Simran Kaur, Fashion WriterCovers Fashion and more for Peepals Shakti. All stories by Simran Kaur
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Simran Kaur is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
