e.l.f. Beauty Marks 29th Consecutive Sales Growth, Reinvests $58.5M Tariff Refunds
e.l.f. Beauty marked its 29th consecutive quarter of net sales growth, driven by spring launches and a nine-point sales contribution from Rhode ahead of its EU rollout in 19 countries. It plans to reinvest $58.5M in tariff refunds and targets a 35% gross-margin rate versus 55% earlier.
1. Record Sales Growth and Product Innovation
e.l.f. Beauty extended its net sales growth streak to 29 quarters, propelled by two spring product launches that landed in the top ten. Lip oil sticks and melting lip balms outperformed expectations, and the company is accelerating additional innovations for its FY27 fall pipeline while evaluating prestige fragrances and haircare adjacencies.
2. Rhode Acquisition and EU Expansion
The Rhode acquisition is expected to contribute nine percentage points to net sales as it integrates into the core brand. Rhode is set to debut in 19 European markets, fueling international expansion and long-term organic growth.
3. Tariff Refunds and Margin Outlook
Management anticipates receiving $58.5 million in tariff refunds and plans to reinvest these funds into value initiatives and unit growth. The gross-margin outlook assumes a tariff rate of 35%, down from 55% last year, supporting improved profitability.
4. Pricing Strategy and Market Share Gains
Price reductions like cutting Halo Glow Skin Tint from $18 to $14 led to a 40% unit lift, with additional adjustments planned across key product families. e.l.f. Beauty gained 115 basis points of market share in color cosmetics during FY26, expanding shelf space at major retailers including Ulta Beauty and Walmart.