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.”
Earlier this month, the company lowered the price of its Halo Glow Skin Tint from $18 to $14, a hero sunscreen-meets-skin care offering it launched in 2025.
“Initial test results show a 38% lift on Amazon and a 36% lift across all retailers, including a triple-digit sales lift on TikTok Shop,” Amin said. “Given these results, we’re exploring other pricing opportunities to deliver value to our community.”
The next pillar of Amin’s plan, innovation, includes moving even faster. “We have fast-tracked innovation that was not part of our original fiscal ‘27 plans and aim to have these in market before the holidays,” he said.
Next on his plan is a focus on international sales, which drove around 38% of the conglomerate’s FY 2026 sales.
“In fiscal ‘26, we launched eight international retail customers across 14 countries. For the year ahead, we’re focused on growing share for the E.l.f. brand in our largest markets: the U.K., Canada and Germany,” Amin said.
Finally, leadership. The company recently onboarded seasoned exec Oshia Savoir as CMO, which pushed Kory Marchisotto into a newly created role of president of E.l.f. brands. Meanwhile, longtime exec Ekta Chopra has moved into another newly created role of chief technology and AI officer.
Part of Amin’s plan also includes freeing up time and resources, which means cutting one of the company’s oldest brands. “We recently made the decision to transfer the Keys Soulcare brand to [founder] Alicia Keys,” he said during the call. “Alicia has a genuine passion and a clear vision for this brand. This decision also allows our team to better focus on our five brands, all of which grew in fiscal ‘26.” E.l.f. Beauty co-founded and incubated the celeb skin-care brand, which launched in 2020 with Keys and sells DTC.
The company has also transferred its manufacturing strategy. “Manufacturing outside of China increased from 1% to over 45% of our production,” Amin said.
As far as price decreases go, Amin is bullish on more cuts. “Obviously, we had 55% tariffs, even higher than that at the time we made the pricing move, plus inflationary pressures that caused us to take [the] $1 price increase [per unit],” he said. “As everyone’s seen, our dollars increased with that, but our units fell off.”
After the $4 price cut on Halo Glow, the team saw an immediate 40% lift in sales. “[This] gives us confidence,” Amin said. “Again, we’re test-and-learn brands, so we will test our way into which are the right families to be able to make that action on, but we’re known for our phenomenal value, and value is always a place we go to first.”
