E.l.f. Beauty exceeded analyst expectations in its first-quarter fiscal 2027, reporting $479.4 million in revenue, a 36% increase year-over-year. Adjusted earnings per share reached $1.75, more than double Wall Street forecasts. The company subsequently raised its full-year guidance for both revenue and profits. A significant factor in this strong performance was a $50 million tariff refund, along with interest payments, which nearly doubled net income to $66.6 million from $33.3 million a year prior and expanded gross margins by approximately 14 percentage points.
CEO Tarang Amin stated the company plans to reinvest almost all of this unexpected gain into making its brands more competitive. This strategy supports continued global expansion, evidenced by international net sales jumping 61% year-over-year, significantly outpacing U.S. growth of 29%. International revenue now constitutes 21% of total sales, double the level from five years ago. Key drivers include the rollout of Naturium at Sephora in Canada and Mexico, and e.l.f.'s launch in Brazil through Sephora.
Acquired brands are central to E.l.f. Beauty's growth. The rhode brand, acquired in August 2025 for $1 billion, contributed $160 million in sales during the quarter and achieved a record $27 million in sales from its website in a single day. rhode is projected to reach $265 million in net sales this year, an increase of up to 70%. Naturium, acquired nearly three years ago, generated almost $250 million in global retail sales in fiscal 2026, doubling its pre-acquisition level and becoming the fastest-growing among the top 50 skincare brands in Q4 2026. The company's non-e.l.f. brand sales have increased from 0% to 30% of global consumption over the past three years. E.l.f. plans to launch rhode with Sephora in 19 European markets in September.
