E.l.f. Beauty Sales Surge 51% Following Rhode’s Record Expansion into Europe
E.l.f. Beauty achieved a 51% increase in second-quarter net sales, reaching $520.8 million. According to Cosmetics Business, the growth was primarily driven by the international expansion of Hailey Bieber’s brand, Rhode, into 19 European countries via Sephora. This performance led the company to raise its full-year 2027 financial outlook.
Context from Industry Pulse
The 51% sales surge at E.l.f. Beauty highlights a successful multi-brand strategy that balances mass-market affordability with high-growth celebrity partnerships. According to Cosmetics Business, international markets now represent the company’s largest growth lever, particularly as legacy peers currently derive 70% of their sales globally compared to E.l.f.’s 25%. While Rhode’s expansion into 19 European countries served as a primary catalyst, the company’s diversification into hair care and fragrance suggests a transition toward becoming a comprehensive beauty conglomerate. The success of the Rhode launch, which became Sephora’s largest ever, underscores the effectiveness of exclusive retail partnerships in scaling digital-first brands.
Financial results for the second quarter show E.l.f. Beauty benefiting significantly from the retail debut of Rhode in the European market. As reported by Cosmetics Business, the launch across 19 countries through Sephora surpassed previous records set in North America and the United Kingdom. This expansion has established Rhode as a top-ranking brand in the region, characterized by high consumer repeat rates and a growing waiting list for limited-edition collaborations.
The parent company’s international net sales climbed by 165% during the quarter, while domestic US sales grew by 25%. Cosmetics Business notes that international revenue currently represents roughly one-quarter of the company’s total sales, suggesting substantial room for growth compared to industry peers. The brand owner highlighted that a significant majority of the social media followings for both E.l.f. Cosmetics and Rhode originate outside the United States.
Beyond the Rhode expansion, E.l.f. Beauty saw contributions from its entire brand portfolio, including Naturium and its namesake cosmetics and skin care lines. The company’s recent move into the hair care sector at Target has also yielded positive early results. Cosmetics Business reports that the hair care range reached the top 20 brands at the retailer within three months, with approximately half of those customers being new to the corporate brand family.
Management indicated that the company remains in the early stages of its global retail strategy. While Rhode has achieved record-breaking status at Sephora, it is currently stocked in only 40% of the retailer’s global locations. The company plans to continue a disciplined expansion into new categories, including fragrance and body care via the E.l.f. POP line, which recently debuted on digital platforms.
The Industry Pulse Bottom Line
E.l.f. Beauty’s record-breaking quarter proves that celebrity-led brands like Rhode can drive massive retail growth when paired with a disciplined international expansion strategy and cross-category diversification into hair and fragrance.