New York, May 20, 2026, 17:03 EDT
e.l.f. Beauty said Wednesday its outlook for fiscal 2027 sales and adjusted profit came in below Wall Street targets. The company flagged a possible $15 million to $20 million cost hit from oil prices linked to the Iran war, which could weigh on results even after a strong fourth quarter. Shares gained after hours as the cosmetics maker topped quarterly revenue and profit estimates.
Investors are watching the outlook as they look for signs that Rhode, the skincare brand e.l.f. picked up from Hailey Bieber last year, will help drive growth. Tariffs, more spending, and softer core cosmetics share remain issues for the stock. Shares of e.l.f. finished regular trading 4.3% lower at $50.72 ahead of the after-hours action.
Oakland’s company forecasted fiscal 2027 net sales between $1.835 billion and $1.865 billion, or 12% to 14% higher than fiscal 2026. The midpoint of that range fell short of analysts’ $1.87 billion average. Adjusted earnings are expected at $3.27 to $3.32 per share, missing the $3.61 analysts looked for, LSEG numbers via Reuters showed.
Fourth-quarter net sales jumped 35% to $449.3 million, beating the $423.1 million analysts had expected. Adjusted earnings came in at 32 cents per share, above the 29-cent estimate. But the company reported a net loss of $49.4 million under U.S. accounting, mainly due to a $57.6 million fair-value adjustment for Rhode contingent consideration, tied to performance of the brand.
e.l.f. CEO Tarang Amin said fiscal 2026 was the seventh year in a row of net sales and market-share gains for the company. “All five of our brands grew this year,” Amin said. Rhode and Naturium outperformed, he added. Quartr
Rhode could swing results for e.l.f. The company said in May 2025 it would buy Rhode for as much as $1 billion, split between $600 million in cash, $200 million in stock and a $200 million earnout over three years. Rhode posted $212 million in net sales for the 12 months through March 31, 2025. The brand was also set to hit Sephora shelves.
Chief Financial Officer Mandy Fields told Reuters that the company is counting on cost-saving programs to help with oil-related pressures. e.l.f. paid roughly $58.5 million in tariffs and is now seeking to recover those funds after import duties implemented under President Donald Trump were struck down, Reuters said.
Fields said shoppers are still spending on beauty and e.l.f. isn’t “seeing the trade down effect right now.” About 75% of the company’s products cost $10 or less, a price that has drawn in consumers keeping an eye on budgets. Investing.com
Margins moved around. Gross margin in the fourth quarter was up 1.4 points to 73%, with pricing gains lifting the number but tariffs capping some of the increase. For the year, gross margin slipped 0.5 point to 71%, mainly from tariff charges. Selling, general and administrative costs were also higher as the company raised spending on marketing, distribution, compensation and other areas.
Analysts took a cautious stance ahead of results. Piper Sandler’s Anna Andreeva said attention would be on “core Elf sales” and the fiscal 2027 outlook. Morgan Stanley’s Dara Mohsenian pointed out that core U.S. cosmetics share was down in both dollars and units, per Investing.com. On Monday, Piper trimmed its price target to $60 from $85 and stuck with a neutral call. Investing.com UK
Beauty stocks are moving on more than just one name. Ulta Beauty cut its annual profit forecast in March as costs hit margins, Coty scrapped its full-year outlook in February with a new turnaround plan, and Estee Lauder lifted its profit guidance this month but said it will lay off more staff. Demand is holding up, but investors are starting to pick between the brands showing growth and those spending too much to get it.
e.l.f. is facing the risk that its new growth drivers won’t make up for the core business slowdown quickly enough. The company named competition, product launches, retail shelf space, performance with key customers, the impact of acquisitions and keeping expenses in check as reasons its results might not match its own forecast.
e.l.f. (ELF) shares moved higher after the quarter. The stock rose 4.5% to $53.00 in after-hours trade, according to Benzinga, while Reuters cited a roughly 6% jump in late trading following results.
