After delaying guidance last quarter due to uncertainty around tariffs, E.l.f. Beauty has issued its full-year fiscal 2026 forecast.
The beauty company — whose portfolio includes E.l.f., Naturium and Rhode — expects net sales between $1.55 billion and $1.57 billion, up from $1.31 billion in fiscal 2025. Adjusted net income is projected to range between $165 million and $168 million, compared with $198 million a year earlier.
For the second quarter ended Sept. 30, net sales rose 14 percent to $343.9 million, short of Wall Street’s estimate of $366 million. Adjusted net income totaled $40.7 million, down from $44.9 million last year, while adjusted diluted earnings per share came in at 68 cents, exceeding analysts’ expectations of 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. “We remain confident in our strategy to grow market share and capitalize on the significant white space ahead of us.”
Amin pointed to Hailey Bieber’s Rhode as a standout performer during the quarter — the first since E.l.f. completed its $1 billion acquisition of the brand. “It was a phenomenal launch,” he said. “In fact, it was the biggest launch Sephora North America has ever seen, two-and-a-half times larger than the number-two launch.”
Addressing the lower-than-expected quarterly revenue, Amin explained that the company had not previously released a full-year outlook due to tariff uncertainty. “It’s the first time we’re giving guidance, so you always have that mismatch,” he noted. “I’m proud of the results we just posted, and it’s a very strong guidance — especially given that the average tariff rate this year is 56 percent, compared to 25 percent last year.”
As for potential acquisitions, Amin said E.l.f.’s strong balance sheet provides flexibility but emphasized that the company’s focus remains on organic growth. “We have a very high bar on M&A,” he said. “If we see another Naturium or Rhode, we have the ability to acquire them — but our primary focus is to continue building our existing brands.”
