Q2 2026 elf Beauty Inc Earnings Call Transcript
Key Points
- e.l.f. Beauty Inc (ELF) achieved a 14% increase in net sales for Q2, marking the 27th consecutive quarter of net sales growth.
- The acquisition of Rhode contributed significantly to net sales, adding $52 million or approximately 17 percentage points to Q2 results.
- e.l.f. Beauty Inc (ELF) continues to outperform the US mass cosmetics and skincare categories, with the e.l.f. brand growing 7% this quarter, three times the category growth.
- The company successfully launched Rhode in Sephora North America, achieving the biggest launch in Sephora's history.
- e.l.f. Beauty Inc (ELF) maintains a strong value proposition, with 75% of its portfolio priced at $10 or less, even after a recent price increase.
- Organic net sales, excluding Rhode, were down approximately 3% in Q2, indicating a decline in the core business.
- Q2 shipments were below consumption due to a temporary halt in shipments to retailers slow to implement a price increase.
- Gross margin declined by approximately 165 basis points year-over-year, primarily due to incremental tariff costs.
- Adjusted EBITDA decreased by 4% compared to the previous year, reflecting increased SG&A expenses.
- The company faces significant tariff headwinds, with tariffs impacting cost of goods sold by an estimated $17 million for every 10 percentage point increase.
Thank you for joining us today to discuss e.l.f. Beauty's second-quarter fiscal '26 results. I'm KC Katten, Vice President of Corporate Development and Investor Relations.
With me today are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer.
We encourage you to tune into our webcast presentation for the best viewing experience, which you can access on our website at investor.elfbeauty.com. Since many of our remarks today contain forward-looking statements, please refer to our earnings release and reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements.
In addition, the company's presentation today includes information presented on a non-GAAP basis. Our earnings release contains reconciliations of the differences between the non-GAAP presentation and the most directly comparable GAAP measure.
With that, let me turn the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
