e.l.f. Beauty extended its growth streak to 30 consecutive quarters during its fiscal first quarter of 2027, with net sales increasing 36% as the company raised its full-year growth outlook to as much as 20%.
Net sales reached $479.4 million for the three months ended June 30, driven by strength across retailer and e-commerce channels in both the U.S. and international markets. The result marked more than seven continuous years of quarterly sales growth.
Following the quarter, e.l.f. Beauty raised its fiscal 2027 net sales growth outlook to 18% to 20% from 12% to 14%. The updated guidance calls for net sales of $1.938 billion to $1.968 billion, compared with the previous range of $1.835 billion to $1.865 billion.
Adjusted EBITDA guidance was also increased to $401 million to $407 million from $379 million to $385 million. Adjusted net income is now expected between $212 million and $215 million, with adjusted diluted EPS of $3.50 to $3.55.
Q1 profitability grew substantially faster than sales. Adjusted EBITDA increased 93% year-over-year to $168.2 million, representing 35% of net sales. Adjusted net income reached $104.6 million, while GAAP net income was $66.6 million.
Gross margin increased approximately 1,400 basis points to 83%. About 1,050 basis points of the improvement came from IEEPA tariff refunds, with the remainder primarily reflecting pricing benefits and lower year-over-year tariff rates.
The company’s rhode acquisition is also performing ahead of expectations. e.l.f. recorded a $16.1 million increase in the fair value of contingent consideration because rhode’s revenue results exceeded the earnout thresholds established in the acquisition agreement.
e.l.f. Beauty ended June with $344.2 million of cash and equivalents and $834.2 million of total debt, compared with $170 million of cash and $256.7 million of debt a year earlier.
KEY QUOTES:
“In Q1, we delivered 36% net sales growth, marking our 30th consecutive quarter, over seven continuous years, of net sales growth. This consistent, category-leading growth is a testament to the strength of our team, strategy, and portfolio of brands.”
“With the momentum we’re seeing, we’re raising our fiscal 2027 outlook to 18 to 20 percent net sales growth from 12 to 14 percent previously.”
Tarang Amin, Chairman and Chief Executive Officer of e.l.f. Beauty
