e.l.f. Beauty (NYSE: ELF) reported first-quarter fiscal 2027 net sales growth of 36%, extending a remarkable run of consecutive quarterly gains to 30 straight periods.
The strong headline number was driven in large part by Rhode, the beauty brand under e.l.f.’s portfolio, which significantly outpaced internal expectations during the quarter.
Senior Vice President and Chief Financial Officer Mandy Fields said Rhode contributed approximately $160 million of net sales during the quarter, outperforming the company’s expectations.
Organic net sales excluding Rhode were largely in line with the company’s prior outlook for a high-single-digit decline, reflecting comparisons against a busy prior-year shipping period.
Gross margin reached 83% during the quarter, bolstered by $50 million in tariff refunds that provided a meaningful lift to profitability metrics.
Fields noted that adjusted EBITDA rose to $168 million, up 93% from a year earlier, but said the figure would have been up 36% excluding the refund effect.
The strong results prompted management to raise its full-year guidance, with the company now expecting fiscal 2027 net sales to increase 18% to 20%, compared with its previous expectation of 12% to 14% growth.
Chairman and Chief Executive Officer Tarang Amin said the company’s momentum prompted it to raise its full-year outlook, emphasizing the unusual nature of its sustained growth record in consumer products.
“In Q1, we grew net sales 36% and delivered our 30th consecutive quarter of net sales growth,” Amin said, underlining the consistency of the company’s commercial performance across economic cycles.
Amin also pointed to the company’s longstanding value positioning as a key competitive advantage in a crowded beauty market.
“For 22 years, we’ve democratized access to the best of beauty,” he said, noting that e.l.f. Cosmetics averages about $7 per item, compared with more than $10 for legacy mass brands and more than $30 for prestige brands.
On Rhode’s longer-term potential, Amin was particularly optimistic, making a bold declaration about the brand’s growth trajectory.
“We believe Rhode could be the fastest beauty brand to achieve $1 billion in net sales,” he said, signaling confidence in the acquisition’s contribution to the company’s overall expansion strategy.
Despite the strong reported numbers and raised guidance, investors appeared cautious in their immediate reaction to the quarterly results.
The stock fell 1.67% in regular trading and then dropped another 2.17% after hours to $84.50, suggesting investors focused on the mix of results, including the high-margin tariff refund boost and weakness in organic sales excluding Rhode.
e.l.f. Beauty is headquartered in Oakland, California, and maintains retail partnerships with major chains including Target, Walmart, Ulta Beauty, and Amazon across its broad cosmetics portfolio.
