E.l.f. Beauty is on another growth streak.
“Rhode continues to break records with every launch, including most recently in Sephora Europe, marking the biggest launch in Sephora’s history,” E.l.f. Beauty CEO Tarang Amin said during Wednesday’s investor call.
E.l.f. Beauty reported a 51% net sales increase for its Q2 2027 quarter ending on September 30 to $520.8 million. This figure is up significantly from the company’s 35% and 36% quarterly sales growth reported in May and August, respectively.
Amin said that this summer’s sales growth was driven by E.l.f. brands, including Naturium and E.l.f. Beauty, E.l.f. Skin, and its new hair-care and fragrance launches. But it was Rhode, and Sephora’s wholesale order ahead of the brand’s September launch into 19 European markets, that drove the quarter.
“U.S. net sales grew 25% in Q2, while international net sales grew 165%,” Mandy Fields, E.l.f. Beauty chief financial officer, said during the call. “Europe was a record launch for Rhode in the European markets. … It’s the largest launch the store has ever seen, only second best to our U.S. launch that we had last year, and so we feel great about the [sales] trends we’re continuing to see on Rhode.”
Amin said he remains bullish on the runway for the company’s overall international presence and further expansion of Hailey Bieber’s Rhode. “We’re still in the early days of international expansion. On a trailing 12-month basis, international accounted for approximately 25% of our net sales, compared to approximately 70% for our legacy peers,” he said. “We believe this gap represents one of our biggest opportunities, and the demand is already there. About 65% of E.l.f. Cosmetics and 75% of Rhode’s social following is outside the U.S. Even after Rhode’s launch in Europe, the brand is still only in 40% of Sephora’s global doors.”
Amin also fielded questions about the future of Rhode’s DTC presence. “We’re seeing momentum across both retail and DTC,” he said. “One of the things I’ve been really pleased the team’s been able to do is have a series of exclusive launches on DTC, which is continuing to propel that business even as we’ve expanded our retail distribution.”
For example, Amin told investors that Rhode’s recent collaboration with influencer Alexandra Leclerc, which included limited-edition colors sold exclusively through Rhode’s DTC, garnered a 200,000-person waitlist. Once released, most products sold out in under an hour, he said.
Looking forward, E.l.f. Beauty will continue to grow Rhode’s presence internationally. “We still have a lot further to go,’ Amin said. “There isn’t a market in the world that doesn’t want Rhode right now.”
