E.l.f. Beauty’s net sales jumped 51% in the second quarter, reaching US$520.8 million. The record-breaking launch of Hailey Bieber’s beauty brand Rhode into Sephora Europe drove this growth.

The company has now raised its outlook for the full 2027 financial year. Sales are expected to grow 22% to 24%, up from the previous forecast of 18% to 20%.

Rhode’s European Expansion

Rhode, founded by Hailey Bieber, launched in 19 European countries exclusively at Sephora this quarter. Tarang Amin, Chairman and CEO of e.l.f. Beauty, highlighted the brand’s success.

“In the last year we executed record-breaking launches [for Rhode] with Sephora in North America and the UK, achieving the number one beauty ranking in both geographies,” Amin said on an investor call.

“This quarter we broke our own records with the expansion into Europe across 19 countries, exceeding what we achieved in North America and marking Sephora’s largest launch ever.”

Rhode is currently in 40% of Sephora stores globally, with room for further expansion. “We still have a lot further to go, and there is not a market in the world that does not want Rhode right now,” Amin added.

The brand’s direct-to-consumer sales have also remained strong, fueled by exclusive launches. Rhode is Sephora’s top-selling brand in Europe with high repeat purchase rates.

Product Strategy and Innovation

Amin praised Rhode’s product strategy, calling it “one of everything really good.” The brand follows a curated approach, focusing on skin, hybrid color, and lip products.

Limited edition collaborations, like the one with Alexandra Leclerc, have driven interest. The Leclerc collaboration had a 200,000-person waitlist and sold out within an hour.

This strategy mirrors e.l.f.’s approach, bringing new users to the brand. Amin said, “We feel really great and we have a very good pipeline of innovation on Rhode.”

E.l.f. Beauty’s Broader Growth

All e.l.f. Beauty brands, including Naturium and e.l.f. Brands, contributed to the sales growth. US net sales grew 25%, while international sales surged 165%.

“We are still in the early days of international expansion,” Amin noted. International sales currently account for 25% of net sales, compared to 70% for competitors.

Amin sees this as a major opportunity. “About 65% of e.l.f. Cosmetics and 75% of Rhode’s social following is outside the US,” he said. Even after the European launch, Rhode is only in 40% of Sephora’s global stores.

New Category Expansion

E.l.f. Beauty’s move into hair care with a six-product range priced under $10 at Target has been successful. The line entered Target’s top 20 hair care brands and top seven in styling within three months.

About half of e.l.f. Hair buyers are new to the brand. The company’s entry into fragrance and body care with e.l.f. POP is also off to a strong start, launching on Amazon and TikTok Shop.

“We are starting with Amazon and TikTok Shop, for instance, transporting consumers to different sensorial destinations around the world, and we are really pleased with what we are initially seeing there,” Amin said.

Further scents in the Pop range are planned for later this financial year, continuing the brand’s disciplined expansion into new categories.

E.l.f. Beauty’s Brand Elasticity and Expansion Strategy

E.l.f. Beauty’s expansion into new categories has shown positive results, though exact sales figures were not disclosed. Around half of consumers purchasing e.l.f. Hair are new to the brand, indicating successful market penetration. The company maintains a disciplined approach to expansion, focusing on categories where consumer demand is evident.