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Rhode’s record-breaking Sephora Europe launch helped E.l.f. Beauty blow through Wall Street estimates in its third quarter and raise its full-year forecast.
The beauty company’s net sales surged 51 percent to $520.8 million in the three months ended Sept. 30. Analysts had predicted $474 million.
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Adjusted net income was $72.7 million, up from $40.7 million a year earlier. Adjusted diluted earnings per share were $1.21, compared with 68 cents in 2025 and topping Wall Street estimates of 59 cents.
As a result, it lifted 2027 net sales outlook to between $2 billion and $2.02 billion, up from previous forecast of $1.93 billion to $1.96 billion. Adjusted net income is now expected to come in at between $231 million and $233 million, up from prior estimate of $212 million to $215 million.
“What I’m most pleased about is we had strength across our entire portfolio. Every one of our brands contributed very strong growth this quarter,” said chairman and CEO Tarang Amin. “We reignited unit movement on E.l.f., building 30 basis points of market share. Rhode continues its phenomenal momentum. We launched Rhode in Sephora Europe, into 19 countries — the biggest launch Sephora has ever seen. The only launch that even came close to that was our Rhode launch into Sephora North America. It’s the first time they saw Sephora Europe actually beat Sephora North America, which shows the momentum on that brand. And Naturium remains one of the fastest-growing brands in skin care.”
Sales for its international business jumped 165 percent in the quarter and Amin believes it’s only just beginning.
“We’ve often talked about the white space we have internationally. Only 25 percent of our business is outside the U.S. versus 70 percent for our peers and we know there’s pent-up demand for our brands,” he continued. “65 percent of E.l.f. social feed is consumed outside the U.S., 75 percent of Rhode’s social feed is consumed outside the U.S., and we definitely saw that. Not only was Rhode the biggest launch Sephora ever had in their history, but we also launched E.l.f. into Sephora Brazil. We’re the number-one brand in Sephora Brazil on both dollars and units, which builds on our number-one position in Sephora Mexico. Naturium continues its expansion into Sephora Canada and Mexico, so we have really great momentum across the board.”
Asked if he was open to more M&A following the success of Rhode, he responded: “We have a very strong balance sheet. If we saw another Rhode or Naturium, we would acquire it. I’ve said that before, but those are incredibly special brands. So the bar is extremely high from an M&A standpoint, but we are open to it.”
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