e.l.f. Beauty raises fiscal 2027 outlook as Q2 net sales rise 51%
Net sales rose 51% to $520.8 million in the quarter ended Sept. 30, and the company raised its full-year net sales growth forecast to 22% to 24%. Adjusted diluted EPS was $1.21.
Key takeaways
- e.l.f. Beauty (ELF) said on Nov. 4 it raised its fiscal 2027 net sales growth forecast to 22% to 24%, from 18% to 20%. Second-quarter net sales rose 51% to $520.8 million from a year earlier. Adjusted diluted EPS was $1.21.
e.l.f. Beauty (ELF) said on Nov. 4 it raised its fiscal 2027 net sales growth forecast to 22% to 24%, from 18% to 20%, after second-quarter net sales rose 51%. Shares rose 2.6% in after-hours trading as of 4:33 p.m. ET, from a regular-session close of $113.60.
The company sells beauty products under e.l.f. Cosmetics, e.l.f. SKIN, e.l.f. Hair, rhode, Naturium and Well People.
Here's how the company did:
- Net sales: $520.8 million vs. $343.9 million a year earlier
- Adjusted diluted EPS: $1.21 vs. 68 cents a year earlier
- GAAP diluted EPS: 50 cents vs. 5 cents a year earlier
- Adjusted EBITDA: $123.4 million vs. $66.2 million a year earlier
Net sales for the six months rose 43% to $1.00 billion. Gross margin for the quarter rose about 160 basis points to 71%, including about 30 basis points from incremental IEEPA tariff refunds.
I am proud of the e.l.f. Beauty team for delivering our 31st consecutive quarter of net sales growth," said Chairman and CEO Tarang Amin. "With this momentum, we are raising our full-year net sales guidance to 22 to 24 percent.
2027 guidance raised
The company now expects net sales of $2.00 billion to $2.03 billion for fiscal 2027. That is up from the $1.94 billion to $1.97 billion range it gave on Aug. 5.
Adjusted diluted EPS is now expected at $3.82 to $3.86, up from $3.50 to $3.55. Adjusted net income is expected at $231 million to $233 million, compared with $212 million to $215 million previously. The adjusted effective tax rate and diluted share count are unchanged at 25% to 26% and 60.5 million.
Costs and cash
Selling, general and administrative expenses rose $69.0 million to $300.1 million in the quarter. Adjusted SG&A rose $81.9 million to $275.1 million, which the company said reflects higher marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization.
The company recorded a $17.7 million fair value increase in contingent consideration tied to the rhode acquisition, driven by rhode's revenue outperformance against earnout thresholds.
As of Sept. 30, the company had $350.8 million in cash and cash equivalents and $826.7 million of total debt. It repurchased $50.0 million of common stock in the six months.
Net income swung from a loss of $49.4 million in the fourth quarter of fiscal 2026 to a profit of $66.6 million in the first quarter of fiscal 2027, according to its SEC filings.