Elf Beauty Q2 Sales Surge 14%, Boosted by Rhode Partnership
Elf Beauty reported a notable sales increase of 14% year-on-year, achieving $343.9 million in net sales for the second quarter of fiscal 2026. This surge is attributed to multiple factors, including the successful launch of Rhode, the company’s newly acquired brand, integrated into their earnings for the first time.
Strong Performance Following Rhode Acquisition
Tarang Amin, Chair and CEO of Elf Beauty, highlighted the company’s growth trajectory, emphasizing continued market share gains of 140 basis points for the Elf brand. The launch of Rhode in Sephora North America reportedly broke records, showcasing the brand’s rapid ascent on the market.
Revenue Growth Breakdown
- US revenues increased by 18%.
- International revenues saw a rise of 2%.
Mandy Fields, Elf’s CFO, noted that Rhode’s launch was a pivotal moment, being the second-best launch for the retailer in North America. Fields expects Rhode will contribute significantly to Elf’s financial portfolio, projecting net sales of $200 million from August through March after the acquisition.
Future Projections and Global Plans
Looking ahead, the company anticipates Rhode will achieve around $300 million in annual sales for the fiscal year, reflecting a 40% increase compared to the previous year. Rhode is also set to expand in the UK with a Sephora launch on November 10.
International Expansion Focus
With over 70% of Rhode’s social media followers located outside the US, Fields expressed a dedication to exploring growth in international markets. Sephora, as the largest global beauty retailer, offers numerous opportunities for expanding Rhode’s presence.
Financial Outlook Amid Tariff Challenges
In its guidance for the fiscal year, Elf Beauty anticipates a net sales increase of 18% to 20% when compared to fiscal 2025. Additionally, the adjusted EBITDA is projected between $302 million to $306 million, marking a 2% to 3% increase from the previous year’s $297 million.
Despite facing significant challenges from tariffs — with rates rising from 25% to an average of 60% — Elf Beauty has managed to maintain EBITDA growth, showcasing resilience in a competitive landscape.
