E.l.f. Beauty Sales Surge 51% as Rhode Sets Sephora Records

E.l.f. Beauty grew net sales 51 percent to $520.8 million in the quarter ended Sept. 30 — $46.8 million above the $474 million Wall Street had forecast — and raised its full-year guidance on the strength of a record-breaking Rhode launch at Sephora Europe.

The adjusted numbers were just as sharp. Adjusted net income reached $72.7 million, up from $40.7 million a year earlier. Adjusted diluted earnings per share came in at $1.21, nearly double the 68 cents posted in 2025 and more than double the 59 cents analysts expected.

Rhode, the brand E.l.f. acquired in 2025, entered Sephora Europe across 19 countries in the quarter. Chairman and CEO Tarang Amin called it "the biggest launch Sephora has ever seen."

What did the quarter deliver?

The results rest on three pillars laid out by Amin:

• Portfolio-wide growth. "What I'm most pleased about is we had strength across our entire portfolio. Every one of our brands contributed very strong growth this quarter," Amin said.
• E.l.f. brand recovery. The company, in Amin's words, "reignited unit movement on E.l.f., building 30 basis points of market share."
• International expansion. Sales outside the U.S. jumped 165 percent in the quarter.

Naturium, acquired in 2023, "remains one of the fastest-growing brands in skin care," Amin said.

Why is the Sephora Europe launch significant?

The Rhode rollout into Sephora Europe now ranks as the retailer's largest launch in its history. The only comparable event, Amin noted, was Rhode's own entry into Sephora North America — and Europe still outperformed.

"It's the first time they saw Sephora Europe actually beat Sephora North America, which shows the momentum on that brand," he said.

The Sephora expansion ran on multiple fronts in the quarter:

• E.l.f. launched into Sephora Brazil and became the number-one brand there on both dollars and units.
• That builds on E.l.'f.'s existing number-one position in Sephora Mexico.
• Naturium continued its expansion into Sephora Canada and Mexico.

How much runway does international hold?

Amin frames the international business as the company's largest untapped pool. Only 25 percent of E.l.f. Beauty's business sits outside the U.S., versus roughly 70 percent for its peers — a gap he reads as pent-up demand rather than weak appeal.

The social media data backs that reading, according to Amin: 65 percent of E.l.f.'s social feed is consumed outside the U.S., and 75 percent of Rhode's is. "We've often talked about the white space we have internationally," he said. "We know there's pent-up demand for our brands."

In concrete terms, a company at peer-level international mix would draw well over half its sales from outside the U.S., against one quarter today.

What changes in the 2027 forecast?

The company lifted its fiscal 2027 outlook across both lines:

• Net sales: $2 billion to $2.02 billion, up from $1.93 billion to $1.96 billion.
• Adjusted net income: $231 million to $233 million, up from $212 million to $215 million.

The raise of up to $60 million at the midpoint of the sales range follows a single quarter in which revenue exceeded consensus by nearly 10 percent.

Is more M&A on the table?

Asked whether Rhode's success would push the company toward further acquisitions, Amin kept the door open — with conditions. "We have a very strong balance sheet. If we saw another Rhode or Naturium, we would acquire it," he said. "I've said that before, but those are incredibly special brands. So the bar is extremely high from an M&A standpoint, but we are open to it."

With international sales growing at 165 percent and two Sephora records in two years, the constraint on E.l.f. Beauty's next move appears to be deal scarcity, not capital.