E.l.f. Beauty Unveils Fiscal 2026 Financial Forecast
E.l.f. Beauty has announced its financial forecasts for the fiscal year 2026, marking significant expectations for growth. The beauty company, known for its popular brands including E.l.f., Naturium, and Rhode, projects net sales to reach between $1.55 billion and $1.57 billion. This represents an increase from $1.31 billion in 2025.
E.l.f. Beauty’s Financial Projections for 2026
For adjusted net income, the company expects figures between $165 million and $168 million, a decrease from $198 million the previous year. The predictions highlight a cautious optimism amidst challenges such as high tariff rates.
Second Quarter Performance Overview
- Net Sales: Increased by 14% to $343.9 million, though below Wall Street’s expectation of $366 million.
- Adjusted Net Income: Recorded at $40.7 million, down from $44.9 million a year earlier.
- Adjusted Diluted Earnings per Share: Reached 68 cents, exceeding analyst expectations of 57 cents, though lower than 77 cents from the previous year.
Chairman and CEO Tarang Amin attributed the quarterly results to effective market strategies, including a notable increase in market share for the E.l.f. brand and a successful launch of the Rhode brand in Sephora stores across North America.
Successful Launch of Rhode
This quarter marked a milestone for E.l.f. as it fully embraced ownership of the Rhode brand, acquired earlier for $1 billion. Amin reported that the Rhode launch was unprecedented, being the largest in Sephora North America’s history, outperforming previous launches by a significant margin.
Challenges and Future Outlook
Despite recognizing the challenges posed by tariffs—averaging 56% compared to last year’s 25%—the company is confident in its strategy for growth. Amin emphasized that they have not previously released financial estimates for 2026 due to the uncertainty surrounding these tariffs.
Looking ahead, E.l.f. aims to focus primarily on organic growth. While the company’s balance sheet supports potential acquisitions, any future purchases must mirror the exceptional nature of existing brands like Rhode and Naturium.
Amin reiterated a commitment to explore new opportunities while capitalizing on the expansive potential across their brand portfolio. The overall outlook remains optimistic as E.l.f. Beauty plans for continued success in the beauty industry.
