e.l.f. Beauty raised its fiscal 2027 sales outlook Nov. 4 after reporting 51% quarterly sales growth, increasing its annual growth target to 22%–24% as business expanded through retailers and e-commerce.

Net sales reached $520.8 million in the fiscal second quarter ended Sept. 30, 2026, compared with $343.9 million a year earlier. The company attributed the increase to performance in both sales channels in the United States and internationally.

A higher annual sales target

Management now expects full-year net sales of $2.003 billion to $2.029 billion, compared with its previous forecast of $1.938 billion to $1.968 billion. Its earlier growth target was 18%–20%. These are company projections, not completed sales.

The updated forecast also raises adjusted earnings expectations. e.l.f. now projects adjusted net income of $231 million to $233 million, up from $212 million to $215 million. Those figures exclude specified expenses and are not GAAP profit forecasts.

Spending rises alongside sales

Quarterly GAAP net income increased to $30 million from about $3 million. Adjusted net income was $72.7 million. The company’s adjustments exclude items including stock-based compensation, acquisition-related costs and changes in acquisition earnout valuations.

Selling, general and administrative expenses increased $69 million to $300.1 million. e.l.f. cited higher marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization. That combined expense is not a standalone advertising-spending figure.

Gross margin rose approximately 1.6 percentage points to 71%. The company attributed the improvement principally to lower year-over-year tariffs and favorable mix, partly offset by price investments. Incremental tariff refunds contributed about 0.3 percentage points.

Keep the acquisition comparison clear

The results are consolidated sales growth, not a reported organic-growth rate. e.l.f. completed its acquisition of rhode on Aug. 5, 2025, partway through the year-earlier comparison quarter.

This quarter included a $17.7 million charge to revalue contingent consideration tied to that acquisition. e.l.f. attributed the adjustment to rhode’s revenue performance against the deal’s earnout thresholds; it did not quantify rhode’s contribution to the 51% sales increase in the earnings release.

Sources

e.l.f. Beauty’s fiscal second-quarter earnings release; StockStory’s report on Yahoo Finance; the August 2025 rhode acquisition closing filing.