After holding back last quarter due to tariffs, E.l.f. Beauty has released its full-year 2026 forecast.
For fiscal 2026 as a whole, the beauty company, whose brands include namesake E.l.f., Naturium and Rhode, is predicting net sales of between $1.55 billion and $1.57 billion, up from $1.31 billion in 2025.
It expects adjusted net income in the region of $165 million and $168 million, down from $198 million.
For the second quarter, net sales increased 14 percent to $343.9 million during the three months ended Sept. 30. Wall Street had forecast $366 million.
Adjusted net income was $40.7 million, down from $44.9 million a year earlier. Adjusted diluted earnings per share were 68 cents, below the 77 cents in 2025, but above analysts’ expectations for 57 cents.
“Our Q2 results, which included 140 basis points of market share gains for our namesake E.l.f. brand and a record-breaking launch of Rhode in Sephora North America, are a continuation of the consistent, category-leading growth we’ve delivered over the past 27 quarters,” said Tarang Amin, E.l.f. Beauty’s chairman and chief executive officer, in a statement. “We remain confident in our strategy to grow market share and capitalize on the significant white space ahead of us.”
In an interview, Amin highlighted that one clear standout was Hailey Bieber’s Rhode, which E.l.f. purchased earlier this year in a $1 billion deal.
“This was the first quarter that we owned Rhode as a brand. It was also the quarter that we launched Rhode in all Sephora North American doors,” he said. “It was a phenomenal launch. In fact, it was the biggest launch Sephora North America has ever seen in their history, two-and-a-half times bigger than the number-two launch.”
On second-quarter sales coming in below analysts’ estimates, he stressed that E.l.f. did not release a full-year 2026 estimate until now due to the wide range of potential outcomes related to tariffs.
“It’s the first time we’re giving guidance, so you always have that mismatch, because obviously, we didn’t tell anyone anything. I’m proud of, not only the results that we just posted, but we are issuing guidance, and it’s a very strong guidance of net sales, which is actually incredible, given this year the average tariff rate is 56 percent, compared to 25 percent last year.”
As for whether the company is in a position to make more acquisitions, Tarang said its balance sheet would allow it, but it would need to be a very special company like Rhode or Naturium.
“Our primary focus is always going to be strong organic growth,” he said. “We continue to deliver. We see incredible white space for our entire portfolio of brands, and so I would say that’s what most of the company is going to stay focused on. Having said that, we also have a very strong balance sheet, even after the Rhode acquisition. We have a very high bar on M&A, but if we see another Naturium or Rhode, we have the ability to acquire them.”
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