e.l.f. Beauty has reported a bumper Q1 2026 despite US global tariffs impacting the drugstore beauty business’ gross margins.
Net sales increased 9% to $353.7m, primarily driven by the company’s retailer and e-commerce channels in the US and internationally.
Gross margin decreased to 69% primarily impacted by US President Donald Trump’s sweeping global tariffs.
“Our strong Q1 results, including 210 basis points of market share gains, are a continuation of the consistent, category-leading growth we have delivered over the past 26 quarters,” said Tarang Amin, e.l.f. Beauty’s Chairman and CEO.
The fast beauty business is also doubling down on its partnership with beauty retailer Sephora, after reporting a successful entry with the LVMH-owner retailer’s Mexico branch.
It also revealed plans to break into Sephora Middle East in the coming year.
Hailey Bieber’s make-up and skin care brand Rhode was acquired by e.l.f. Beauty in a landmark US$1bn deal earlier this year.
The deal, which officially closed on 5 August, was highlighted during the brand's investor call by Amin.
“We are thrilled to add the talented Rhode team to the e.l.f. Beauty family,” said Amin.
“I have been in the consumer space for 34 years and have been blown away by what Hailey and her team are building.”
Amin said the initial focus for the brand will be to accelerate Rhode’s brand awareness.
e.l.f. Beauty research revealed that Rhode's “aided awareness” is 20% in the US at the current time, half the level of other skin care brands, which average 40% or more.
It also plans to support Rhode’s expansion of its distribution footprint.
“The team is focused on executing its launch with Sephora,” Amin added.
“Sephora's standard approach is to test brands in a subset of stores before scaling.
“Given Rhode’s breakthrough D2C success, and Sephora's belief in the brand, Rhode is launching in all Sephora stores across the US and Canada in September, and in the UK by the end of the year.”
Rhode is also expanding its line into the European market.
The beauty brand’s full collection will be available in Scandinavia, Denmark, Finland, Sweden and Netherlands, Austria, Greece and Poland.
e.l.f. Beauty added that due to the “wide range of potential outcomes” related to tariffs, it will not be providing a full-year financial outlook for 2026 at the current time.
It has, however, provided its expectations for the first half of the year, anticipating net sales above the 9% growth reported in the first quarter.
Amin continued: “The combination of our value proposition, powerhouse innovation and disruptive marketing engine continues to fuel our results.
“We remain excited by the significant whitespace we see ahead as we strive to make the best of beauty accessible for all.”