ELF Beauty has raised its full-year outlook following a strong second quarter and expectations of continued growth from its acquisition of Hailey Bieber’s brand Rhode.

The company reported a 51 per cent year-on-year increase in net sales to US$520.8 million (A$755.9 million) for the quarter ended September 30. Meanwhile, net income climbed to about US$30 million ($43.5 million), up from just under US$3 million (A$4.4 million) a year earlier.

As a result, ELF Beauty now expects net sales to grow between 22 per cent and 24 per cent in FY27, up from its previous forecast of 18 per cent to 20 per cent.

Chief executive Tarang Amin attributed the company’s positive performance to its “passionate team of owners, deep engagement with our community and democratising access to the best of beauty”.

The acquisition of Rhode, officially announced in May 2025, also contributed to ELF Beauty’s Q2 growth. Experts believe it will continue to drive growth in the months ahead.

However, even excluding Rhode, Neil Saunders, managing director at GlobalData, noted that “organic growth remains strong and is being driven by both volume and pricing.

“There is also balance in geography, which means that while international is delivering stellar numbers, there’s still healthy expansion in the US,” he said.

“A lot of this is underpinned by very strong product launches and a clear value position which is appealing to consumers.”

Retail brand strategist and marketing consultant Bethany Paris Ramsay said the results reflect more than just the Rhode acquisition.

“Rhode was a meaningful contributor, but the 51 per cent headline tells two stories,” Ramsay told Inside Retail .

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