E.l.f. Beauty Inc. raised its full-year outlook for the second straight quarter after net sales increased 51% in its fiscal Q2 2027, helped by Rhode’s launch at Sephora in Europe and a rebound in unit sales for the core e.l.f. brand.
Net sales for the quarter ended Sept. 30 reached $520.8 million, an increase from $343.9 million a year earlier. It was the company’s 31st consecutive quarter of net sales growth, CEO Tarang Amin said.
E.l.f. said sales grew in both retailer and ecommerce channels in the U.S. and abroad.
Organic net sales rose about 35%, chief financial officer Mandy Fields said on the earnings call. Rhode, which e.l.f. acquired in August 2025, added about 16 percentage points to total growth in the month before the deal’s anniversary on Aug. 5.
E.l.f. Beauty ranks No. 328 in Digital Commerce 360’s Top 1000 Database, which ranks North America’s leading online retailers by annual web sales.
E.l.f. Beauty is also No. 327 in Digital Commerce 360 and ReFiBuy’s AI Commerce Rankings. That set of rankings is available in the Top 1000 Pro with AI Database.
Amazon and TikTok Shop drive digital sales
Connected commerce, which e.l.f. uses to describe sales through online platforms, accounted for 31% of sales in Q2, Amin said.
In the U.S., e.l.f. was the top cosmetics brand on Amazon and the most-searched. On TikTok Shop, e.l.f. Cosmetics climbed to No. 2 in cosmetics.
Amazon ranks No. 3 in Digital Commerce 360’s Global Online Marketplaces Database. That database ranks the 100 largest such marketplaces by third-party gross merchandise value (GMV).
E.l.f. is also using digital platforms to test new categories. In October, the retailer launched e.l.f. Pop, a fragrance and body collection, exclusively on Amazon and TikTok Shop, with more scents planned later this fiscal year. E.l.f. Hair launched in July with a six-product assortment priced at $10 or less, exclusively at Target. It is already among Target’s top 20 hair care brands, Amin said, and about half its buyers are new to e.l.f.
Rhode’s direct-to-consumer site remains a strong channel alongside its retail expansion, Amin said. A limited-edition collection with influencer Alexandra Leclerc had a waitlist of more than 200,000 people and mostly sold out within an hour. E.l.f. has not seen higher customer acquisition costs for Rhode, he said.
Rhode’s European launch lifts international sales
Rhode launched at Sephora in 19 European countries in September. Amin said the launch marked “the biggest launch in Sephora’s history.” He also said Rhode is the top brand Sephora carries in Europe, with one of the strongest repeat rates the retailer sees. Rhode is still in only about 40% of Sephora locations worldwide, he said.
E.l.f. international net sales grew 165% in Q2, while U.S. net sales rose 25%. International sales accounted for about 25% of net sales on a trailing 12-month basis. In May, Digital Commerce 360 reported the figure was about 20%. Amin said legacy beauty peers generate about 70% of their sales abroad.
Fields said the core e.l.f. brand also improved in its largest international markets: Canada, the U.K. and Germany.
e.l.f. expects growth to slow in second half of 2027
E.l.f. now expects fiscal 2027 net sales growth of 22% to 24%, up from a projected 18% to 20% last quarter and 12% to 14% in May.
The beauty retailer expects second-half net sales growth of about 7-10%, with Q3 above that range and Q4 below it. Fields tied the Q4 slowdown to last year’s launches, including e.l.f.’s expanded space at Ulta Beauty, its launch with dm in Germany, Rhode’s launch at MECCA in Australia and New Zealand and Naturium’s first expansion into Walmart.
Fields said the 7% to 10% growth outlook is well ahead of the beauty category, which is growing at a low-single-digit rate.
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