On Wednesday, E.l.f. Beauty reported 38% net sales growth in Q3 fiscal 2026, ending December 31, to $489.5 million. Hailey Bieber’s Rhode, which E.l.f. Beauty acquired in September, drove the majority of this growth.
“Rhode’s growth has been phenomenal, outpacing anyone’s expectations,” said CEO and chairman Tarang Amin.
“We are raising our fiscal 2026 outlook, … primarily driven by Rhode’s outperformance for the full year,” said E.l.f Beauty CFO Mandy Fields. “We now expect Rhode to contribute approximately $260 [million] to $265 million in net sales in fiscal 2026 versus our expectation for $200 million previously.”
Without Rhode’s contribution, the conglomerate grew just 2% during its Q3, according to Amin.
This was at least partially due to E.l.f. Beauty’s tariff-focused price increase in August. “We took a 15% price increase, and we saw single-digit unit declines, which is actually quite good,” Amin said.
He also shared insights into the conglomerate’s growth plans for Rhode, which are based primarily on international expansion and minimal new product innovation to maintain a tight curation, he said. “We’re seeing significant, pent-up global appetite for Rhode,” he said. “International drives approximately 20% of Rhode’s DTC sales, while 74% of the brand’s social followers are from outside the U.S.”
To capitalize on this opportunity, Rhode is set to enter Mecca in Australia and New Zealand this month. Meanwhile, Amin is targeting Germany for E.l.f. Beauty. It is currently expanding its footprint by entering DM, a retail store chain headquartered in Germany, he said.
Amin mentioned a slowdown in the U.K., largely due to retailer markdowns increasing competition to its value proposition, but held firm on the opportunity in Germany.
“I’m particularly excited about what we can do in Germany, the largest market in Europe, and we will continue to seed other markets, but all the consumer metrics we’re seeing right now are healthy relative to the time that we’ve entered each of these,” Amin said.
One could easily glean that Germany is Rhode’s next stop, as well. “We have very high aspirations in terms of the globalization of Rhode over time,” Amin said. “But we want to make sure we’re doing it with the same level of quality and care that we’ve done so far in both North America and the U.K., and soon to be, Australia and New Zealand.”
Amin also called out holiday sales winners during the earnings call, including E.l.f. Beauty’s new $5 concealer, Soft Glam, and Slipstick lipstick, which offers dupes of Clinique’s Black Honey and YSL’s Rouge Volupté Shine Lipsticks, according to fans. Amin teased the release of new innovation this spring. He also spoke about a mascara innovation being launched by E.l.f. Beauty this fall, but didn’t provide additional details. This could be in an effort to earn market share from Cosnova, a leader in mass mascara with its brands Essence and Catrice.
