Key facts
- Elf Beauty raised its fiscal 2027 net sales forecast to $1.94 billion-$1.97 billion.
- The company increased its annual adjusted profit forecast to $3.50-$3.55 per share.
- Net sales for the quarter ended June 30 rose 36% to $479.4 million.
- First-quarter adjusted profit per share was $1.75, beating estimates of 71 cents.
- Elf Beauty is focused on international expansion, with 20% of sales currently outside the U.S.
Elf Beauty has raised its annual sales and profit forecasts, citing strong demand for its affordable beauty products amid persistent inflation. The company, which offers approximately 75% of its products at $10 or less, is attracting consumers seeking value.
CFO Mandy Fields stated that the company is emphasizing value for consumers facing inflationary pressures. Elf Beauty is also focusing on international expansion, with 20% of its sales currently generated outside the U.S. The company sees this as a significant growth opportunity.
As part of its expansion strategy, Elf Beauty's acquired brand Rhode will launch in 19 European countries next month, and the Elf brand will be introduced in Brazil. Both initiatives are in partnership with Sephora.
For fiscal 2027, Elf Beauty now expects net sales between $1.94 billion and $1.97 billion, an increase from its previous projection of $1.84 billion to $1.87 billion. The company also forecast annual adjusted profit per share between $3.50 and $3.55, up from the prior outlook of $3.27 to $3.32.
In the first quarter ended June 30, Elf Beauty's net sales surged 36% year-over-year to $479.4 million, surpassing analysts' average estimate of $429.5 million. Adjusted profit per share for the quarter was $1.75, significantly exceeding the estimated 71 cents. The company also launched haircare products and reported a gross margin increase of 1,400 basis points, partly due to tariff refunds.