ELF reports USD 520.8M sales in Q2 FY27
This performance was driven by strong performance across its brand portfolio and continued momentum in both US retail and international e-commerce channels.
USA – ELF Beauty has reported a 51% year-over-year increase in net sales, reaching USD 520.8 million in the second quarter of fiscal 2027.
The results have led the company to raise its full-year fiscal 2027 outlook, with projected net sales now expected to exceed USD 2 billion.
The company’s growth was supported by its broad portfolio, which includes ELF Cosmetics, ELF Skin, ELF Hair, Rhode, Naturium, and Well People.
ELF also reported a USD 17.7 million increase in the projected fair value of contingent consideration linked to its acquisition of Rhode.
The company completed the acquisition in August 2025 for an initial payment of USD 800 million, with an additional USD 200 million potentially payable based on performance-related conditions.
The second-quarter results, along with the first half of fiscal 2027 ended September 30, represent ELF’s 31st consecutive quarter of net sales growth.
ELF’s continued expansion reflects its accessible-beauty positioning, international growth strategy, and increasingly diversified brand portfolio.
The company’s ability to sustain growth across multiple brands and markets has reinforced confidence in its long-term outlook.
During the quarter, gross margin rose to 71%, an increase of approximately 160 basis points year over year.
This improvement included around 30 basis points of benefit from incremental US tariff refunds, alongside lower year-over-year tariff costs and a favourable product mix, although these gains were partly offset by price investments.
Selling, general and administrative expenses increased by USD 69 million to USD 300.1 million, while adjusted selling, general and administrative expenses rose by USD 81.9 million to USD 275.1 million.
The higher spending reflected increased investment in marketing, merchandising, distribution, and personnel.
For the first half of fiscal 2027, ELF reported net sales of USD 1 billion, representing 43% year-over-year growth.
The company recorded net income of USD 96.6 million, while adjusted EBITDA increased by 90% year over year to USD 291.6 million.
Gross margin for the first half reached 77%, supported in part by significant tariff-refund benefits.
These results demonstrate the strength of ELF’s operating performance and its capacity to convert sales growth into improved profitability.
ELF raised its fiscal 2027 net-sales forecast from the previous range of USD 1.94 billion to USD 1.97 billion to a new range of USD 2.00 billion to USD 2.03 billion.
The company also increased its expected sales growth from 18% to 20% to 22% to 24%.
The updated outlook includes higher adjusted EBITDA guidance, rising from USD 401 million to USD 407 million to USD 421 million to USD 427 million.
Adjusted net income guidance was raised from USD 212 million to USD 215 million to USD 231 million to USD 233 million, while adjusted diluted earnings per share increased from USD 3.50 to USD 3.55 to USD 3.82 to USD 3.86.
Following the announcement of the Rhode acquisition, ELF shares initially rose by 12%. However, the share price later declined by 11.8% after investors responded to margin pressures and tariff-related costs disclosed in the company’s first-quarter fiscal 2026 results.
Despite growing uncertainty around diversity, equity and inclusion initiatives among US companies in recent years, ELF has continued to prioritise diversity within its operations.
The company maintains that diverse leadership contributes directly to stronger business performance and improved corporate governance.
ELF recently announced its third National Association of Corporate Directors cohort under its inclusive corporate-director initiative, Change the Board Game.
The company has previously stated that the typical publicly traded US boardroom is 77% white and 72% male, while arguing that diverse leadership is associated with higher revenues, stronger returns, and fewer legal disputes.
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