Elf Beauty has raised its annual forecasts, after demand for affordable cosmetics and the expansion of Hailey Bieber’s Rhode brand drove a 36 per cent jump in quarterly sales.
The company now expects fiscal 2027 net sales of between £1.44bn and £1.46bn, up from its previous forecast of £1.37bn to £1.39bn.
Its adjusted earnings forecast was also lifted to between £2.60 and £2.64 per share, compared with its earlier guidance of £2.43 to £2.47.
First-quarter sales climbed 36 per cent to £356m, ahead of analysts’ expectations of £319m, marking Elf’s 30th consecutive quarter of revenue growth.
Adjusted earnings reached £1.30 per share, compared with the 53p forecast by analysts.
Value focus drives demand
Elf has benefited as cost-conscious shoppers seek cheaper alternatives to premium beauty products, with around 75 per cent of its range priced at £7.43 or less.
The group cut prices across 10 per cent of its portfolio during the quarter after trials showed that lower prices could drive higher sales volumes.
Chief executive Tarang Amin said the move had increased unit momentum and could help the company grow gross profit over time.
The retailer’s gross margin rose to 83 per cent, helped by pricing changes, lower tariff rates and refunds on duties previously paid by the business.
Elf targets UK growth
Elf is looking to accelerate its international expansion, with the UK, Canada and Germany identified as its largest growth opportunities outside the US.
International markets currently generate around 20 per cent of group sales, compared with more than 70 per cent at some rival beauty businesses.
The company is expanding its presence at Boots in the UK, while Rhode will launch in 19 European countries next month through Sephora.
Elf will also enter Brazil through the beauty retailer as it looks to reduce its reliance on the US market and capture growing demand for accessible cosmetics overseas.
Its portfolio includes Elf Cosmetics, Elf Skin, Rhode, Naturium, Well People and its recently launched haircare range.
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