e.l.f. Beauty reported first-quarter fiscal 2027 results on August 5, delivering net sales growth of 36% year-over-year. The performance marked the company’s 30th consecutive quarter of net sales expansion, a streak spanning more than seven years. According to management, only 6 of 516 public consumer companies tracked have achieved comparable growth while maintaining an average of at least 20% quarterly expansion.
Following the strong quarterly results, e.l.f. raised its full-year net sales growth outlook to a range of 18% to 20%, compared with a previous guidance of 12% to 14%. The Rhode brand acquisition emerged as a significant growth driver, contributing approximately $160 million in net sales during the quarter and generating $27 million in single-day sales during its summer launch on rhodeskin.com. The brand attracted 90,000 new customers while retaining over 70% of sales from repeat purchasers. International expansion accelerated sharply, with sales climbing 61% compared to domestic growth of 29%, driven by new distribution partnerships and upcoming launches across multiple regions and retailers.
However, underlying the headline results were mixed dynamics. Excluding Rhode, the core e.l.f. business experienced organic net sales declines in the mid-to-high single digits, with unit volumes declining approximately 3 percentage points. Management implemented a pricing test earlier in the year and subsequently reduced prices on about 10% of product offerings to address value positioning and recover lost units. Gross margin expanded roughly 1,400 basis points to 83%, though over 1,050 basis points of that increase derived from $50 million in tariff refunds that flowed through cost of goods—a benefit management noted would not repeat.
Adjusted EBITDA increased 93% to $168 million, but growth excluding the tariff refund was approximately 36%. Selling, general, and administrative expenses climbed to 54% of sales from 50% a year prior. The company indicated plans to reinvest the entire tariff refund amount through price reductions and marketing initiatives, with management expecting this redeployment to produce roughly neutral effects on full-year EBITDA. Hedge fund ownership increased modestly from 38 to 39 funds, while short interest stood at 16.01% of the float as of the reporting period. The stock traded at a forward price-to-earnings multiple of 33 as of August 13.
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