E.l.f Beauty raises outlook as sales surge 36%

E.l.f. Beauty has delivered a 36% increase in net sales to $479.4 million for the three months ended 30 June 2026, marking its 30th consecutive quarter - more than seven continuous years - of growth.

Growth was driven by "strong" performance across both the company’s retail and e-commerce channels, in the US and internationally.

The owner of E.l.f. Cosmetics, Rhode and Naturium also reported adjusted EBITDA of $168.2 million, up 93% year-on-year.

Meanwhile, gross margin increased by approximately 1,400 basis points to 83%, including an approximately 1,050 basis point benefit from IEEPA tariff refunds. The remaining increase was primarily driven by pricing benefits and lower year-on-year tariff rates.

As a result, the company has updated its fiscal 2027 outlook, reflecting an expected 18-20% year-on-year increase in net sales, compared with the previously forecast 12-14% increase.

Tarang Amin, Chairman and Chief Executive Officer at E.l.f. Beauty, said: "I’m proud of the E.l.f. Beauty team for achieving another quarter of industry-leading results.

"This consistent, category-leading growth is a testament to the strength of our team, strategy, and portfolio of brands."

The trading update comes as E.l.f. Cosmetics partners with Bubble on a limited-edition collection of skincare-makeup hybrid products, available exclusively at select Boots stores and online from today, 6 August.

The collaboration brings together two brands with strong appeal among younger beauty consumers and reflects continued interest in products that combine skincare and colour cosmetics.

According to the brands, the collection was developed in response to the growing popularity of “cocktailing” routines, where consumers mix and layer skincare and makeup products to achieve customised results.

The hybrid formats are designed to combine skincare ingredients with cosmetic performance in a single product.