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Can e.l.f. Beauty Extend Its Double-Digit Sales Growth Run?
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Key Takeaways
e.l.f. Beauty expects fiscal 2027 net sales to grow 12% to 14%, reaching up to $1.865 billion.
Rhode added $113 million in fourth-quarter sales, driving about 34 percentage points of growth.
The core e.l.f. brand slowed recently, while price cuts and innovation aim to support momentum.
e.l.f. Beauty, Inc. (ELF - Free Report) has built one of the strongest growth records in beauty, supported by consistent sales expansion, market share gains and a broader brand portfolio. The latest results show that the company is still positioned for double-digit growth in fiscal 2027, though the path now depends on both Rhode’s contribution and improved momentum in the core e.l.f. brand.
Fiscal 2026 net sales increased 25% to $1.64 billion, while fourth-quarter net sales rose 35% to $449.3 million. The quarter marked the company’s 29th consecutive quarter of net sales growth, underscoring the durability of its top-line performance.
The growth mix, however, has changed. Rhode contributed $113 million in fourth-quarter net sales, accounting for about 34 percentage points of quarterly growth. Excluding Rhode, organic net sales increased about 1% in the quarter. The core e.l.f. brand also showed some moderation, with global consumption slowing from high single digits in fiscal 2026 to low single digits over the latest 12 weeks, as spring 2026 innovation started slower than expected.
For fiscal 2027, e.l.f. Beauty expects net sales of $1.835 billion to $1.865 billion, representing growth of 12% to 14% from fiscal 2026. Rhode is expected to contribute about nine percentage points to full-year growth, including approximately $140 million of net sales in the first four months of the fiscal year. Organic net sales are expected to grow about 4% to 5%, encompassing Rhode once it becomes part of the organic growth starting in August.
To support the core e.l.f. brand, the company is focusing on value, innovation, international growth and sharper brand execution. While ELF’s guidance shows that double-digit sales growth remains within reach, sustaining that pace will require a stronger organic contribution from the core e.l.f. brand, alongside the continued scaling of Rhode.
Shares of this Zacks Rank #3 (Hold) company have rallied 25% over the past three months compared with the industry’s growth of 20.6%.
The Zacks Consensus Estimate for The Estee Lauder Companies’ current fiscal-year sales and earnings suggests a year-over-year increase of 4.5% and 59.6%, respectively. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Helen of Troy Limited (HELE - Free Report) operates as a consumer product company with beauty, wellness, home and outdoor brands. HELE carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal-year earnings calls for a year-over-year decline of 3.1%, while the consensus mark for the next fiscal year EPS suggests 16.6% growth.
Nu Skin Enterprises, Inc. (NUS - Free Report) , a beauty and wellness company selling skincare, personal care and nutrition products, currently holds a Zacks Rank #2.
The Zacks Consensus Estimate for Nu Skin’s current financial-year sales and earnings indicates year-over-year declines of 4% and 21.3%, respectively. However, the consensus mark for NUS’ next-year sales and EPS suggests respective increases of 7.3% and 32% year over year.
View the Zacks #1 Rank List
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Can e.l.f. Beauty Extend Its Double-Digit Sales Growth Run?
Key Takeaways
e.l.f. Beauty, Inc. (ELF - Free Report) has built one of the strongest growth records in beauty, supported by consistent sales expansion, market share gains and a broader brand portfolio. The latest results show that the company is still positioned for double-digit growth in fiscal 2027, though the path now depends on both Rhode’s contribution and improved momentum in the core e.l.f. brand.
Fiscal 2026 net sales increased 25% to $1.64 billion, while fourth-quarter net sales rose 35% to $449.3 million. The quarter marked the company’s 29th consecutive quarter of net sales growth, underscoring the durability of its top-line performance.
The growth mix, however, has changed. Rhode contributed $113 million in fourth-quarter net sales, accounting for about 34 percentage points of quarterly growth. Excluding Rhode, organic net sales increased about 1% in the quarter. The core e.l.f. brand also showed some moderation, with global consumption slowing from high single digits in fiscal 2026 to low single digits over the latest 12 weeks, as spring 2026 innovation started slower than expected.
For fiscal 2027, e.l.f. Beauty expects net sales of $1.835 billion to $1.865 billion, representing growth of 12% to 14% from fiscal 2026. Rhode is expected to contribute about nine percentage points to full-year growth, including approximately $140 million of net sales in the first four months of the fiscal year. Organic net sales are expected to grow about 4% to 5%, encompassing Rhode once it becomes part of the organic growth starting in August.
To support the core e.l.f. brand, the company is focusing on value, innovation, international growth and sharper brand execution. While ELF’s guidance shows that double-digit sales growth remains within reach, sustaining that pace will require a stronger organic contribution from the core e.l.f. brand, alongside the continued scaling of Rhode.
Shares of this Zacks Rank #3 (Hold) company have rallied 25% over the past three months compared with the industry’s growth of 20.6%.
Image Source: Zacks Investment Research
3 Solid Cosmetic Bets to Consider
The Estee Lauder Companies Inc. (EL - Free Report) , a global prestige beauty company across skincare, makeup, fragrance and hair care, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Estee Lauder Companies’ current fiscal-year sales and earnings suggests a year-over-year increase of 4.5% and 59.6%, respectively. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Helen of Troy Limited (HELE - Free Report) operates as a consumer product company with beauty, wellness, home and outdoor brands. HELE carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal-year earnings calls for a year-over-year decline of 3.1%, while the consensus mark for the next fiscal year EPS suggests 16.6% growth.
Nu Skin Enterprises, Inc. (NUS - Free Report) , a beauty and wellness company selling skincare, personal care and nutrition products, currently holds a Zacks Rank #2.
The Zacks Consensus Estimate for Nu Skin’s current financial-year sales and earnings indicates year-over-year declines of 4% and 21.3%, respectively. However, the consensus mark for NUS’ next-year sales and EPS suggests respective increases of 7.3% and 32% year over year.