e.l.f. Beauty Raises Fiscal 2027 Sales Outlook

The Tip Desk · August 5, 2026 · 3 min read

The beauty company lifted its fiscal 2027 net sales forecast to 18% to 20% growth after 36% first-quarter sales growth and an 83% gross margin.

e.l.f. Beauty (ELF) raised its fiscal 2027 net sales outlook to 18% to 20% growth from 12% to 14% previously, citing momentum after another quarter of double-digit sales expansion.

The beauty company, which sells e.l.f. Cosmetics, e.l.f. SKIN, e.l.f. Hair, rhode, Naturium and Well People, reported net sales of $479.4 million for the three months ended June 30, 2026, up 36% from a year earlier. That growth rate sat between 35% in the immediately preceding quarter and 38% two quarters earlier. Chairman and Chief Executive Officer Tarang Amin said the result marked the 30th consecutive quarter of net sales growth, spanning more than seven years.

The increase was driven by strong performance in both retailer and e-commerce channels, in the United States and internationally.

Gross margin was the sharper turn. It rose approximately 1,400 basis points to 83%, including about 1,050 basis points of benefit from IEEPA tariff refunds, with the remaining increase primarily from pricing and lower year-over-year tariff rates. Two quarters earlier, gross margin had fallen about 30 basis points to 71% on higher tariff costs.

Adjusted EBITDA was $168.2 million, or 35% of net sales, up 93% from a year earlier. In the prior quarter, adjusted EBITDA had been $58.8 million, or 13% of sales, down 28% year over year. GAAP net income was $66.6 million, or $1.12 a share, after a GAAP net loss of $49.4 million, or $0.82 a share, in the quarter ended March 31, 2026. Adjusted net income was $104.6 million, or $1.75 a share.

Selling, general and administrative expenses increased $84.5 million to $280.3 million. Adjusted SG&A rose $83.4 million to $260.7 million. The increase was primarily related to marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization.

The company recorded a $16.1 million fair value adjustment on contingent consideration related to the rhode acquisition, which was driven by rhode’s revenue outperformance relative to earnout thresholds in the merger agreement.

Cash and cash equivalents were $344.2 million as of June 30, 2026, and total debt was $834.2 million. Operating cash flow was $111.7 million for the quarter. The company repurchased $50.0 million of common stock and repaid $7.5 million of long-term debt.

The updated fiscal 2027 outlook now calls for net sales of $1,938 million to $1,968 million, adjusted EBITDA of $401 million to $407 million, adjusted net income of $212 million to $215 million, and adjusted diluted earnings of $3.50 to $3.55 a share, with weighted average diluted shares of 60.5 million. The adjusted effective tax rate remains 25% to 26%.

Amin said the company is raising the outlook to 18% to 20% net sales growth from 12% to 14% previously.