E.l.f. Beauty delivered robust first-quarter fiscal 2027 results, with revenue surging 36% year-over-year to $479.4 million, significantly surpassing analyst expectations. Adjusted earnings reached $1.75 per share, doubling forecasts. A key factor in this performance was an unexpected $50 million tariff refund, which the company plans to fully reinvest to enhance its value proposition and boost marketing across its brand portfolio, aiming for long-term market share gains over short-term profits. This strategy underscores E.l.f.'s commitment to strengthening its market position and acquiring new customers.
The company's skincare brands played a crucial role in its growth. The acquisition of Rhode skincare contributed approximately $160 million in sales to the first quarter. In fiscal 2026, E.l.f. Skin achieved approximately $200 million in global retail sales, rising from the number 25 to the number 11 mass skincare brand in the U.S. Notorium, another clinically effective skincare brand acquired by E.l.f., delivered nearly $250 million in global retail sales in fiscal 2026, doubling its pre-acquisition levels. Rhode, founded by Hailey Bieber, exceeded expectations in fiscal 2026 with over $500 million in global retail sales and approximately $390 million in net sales, growing over 80% year-over-year. The diversification through acquisitions like Rhode and Notorium has increased non-E.l.f. brand sales from 0% to 30% of global consumption and skincare's share from 9% to 23% of global consumption over the past three years.
E.l.f. Beauty also raised its full-year guidance, projecting an 18% to 20% revenue growth rate, translating to a range of $1.94 billion to $1.97 billion. The company is strategically expanding its geographical footprint, with new launches in Europe and Brazil, further solidifying its position as a growing beauty powerhouse. Despite slower growth in the core E.l.f. brand in recent weeks, the company is taking actions such as price reductions, fast-tracking innovation, and focusing on international market activation and leadership changes to boost its performance.
