On Wednesday, E.l.f. Beauty reported a 35% increase in net sales to $449.3 million for the three months ending March 31. This was driven primarily by Rhode, which contributed $113 million in sales during the quarter. “As we look to our results in fiscal 2027 to date, we’re continuing to see strength in Rhode and Naturium with slower-than-expected growth on the E.l.f. brand,” E.l.f. Beauty CEO Tarang Amin said during Wednesday’s call. The E.l.f. brand encompasses E.l.f. Cosmetics and E.l.f. Skin. Together, their sales dropped from high single-digit growth to low single-digit growth in the past 12 weeks, Amin said.
“Our spring 2026 innovation is off to a slower start than we expected, and as a result, we’re not seeing the lift across our core items that spring innovation has historically delivered,” Amin said. “We’re not satisfied with these results and are taking action to further strengthen E.l.f. brand growth across four key areas: value, innovation, international and leadership.”
In August, the company announced a $1 price increase across all E.l.f. product SKUs as a response to tariffs and inflation. “As we look at the state of the consumer today, we have recently seen a more pronounced decline in units,” Amin said. “As a result, we are keenly focused on how to deliver better value and improve unit velocity.”
