e.l.f. Beauty, Inc. ELF posted fourth-quarter fiscal 2026 results, wherein both the top and bottom lines beat estimates. The top line increased year over year, while the adjusted EPS declined compared to the prior-year period.
ELF Q4 Results: Key Metrics & Insights
ELF posted adjusted earnings of 32 cents per share, down 59% from 78 cents a year ago. The figure beat the Zacks Consensus Estimate of 29 cents.
e.l.f. Beauty Price, Consensus and EPS Surprise
e.l.f. Beauty price-consensus-eps-surprise-chart | e.l.f. Beauty Quote
Net sales of $449.3 million rose 35.1% year over year from $332.7 million and surpassed the Zacks Consensus mark of $426 million. The quarter’s sales increase was driven by growth in both retail and e-commerce channels, spanning the United States and international markets.
The company highlighted that Rhode contributed $113 million in net sales during the fiscal fourth quarter, while organic net sales growth for the quarter was 1%.
e.l.f. Beauty’s Margin & Cost Performance
Gross profit increased to $326.5 million, up 37.7% year over year from $237 million. Gross margin improved about 140 basis points year over year to 73% in the fiscal fourth quarter. The company cited pricing benefits as the primary tailwind, while also flagging higher tariffs as a partial offset.
Adjusted selling, general and administrative expenses increased significantly by 73.1% year over year to $300 million from $173.3 million. The increase is primarily due to higher marketing, merchandising and distribution costs, compensation and benefits, depreciation and amortization, professional fees and regulatory fees.
The company reported adjusted EBITDA of $58.8 million, down 27.7% year over year from $81.4 million in the prior-year period. Adjusted EBITDA margin declined to 13% of net sales, indicating pressure on overall profitability during the period.
ELF’s Balance Sheet & Financial Position
Cash and cash equivalents were $289.7 million as of March 31, 2026, while total debt was $841.7 million compared with $148.7 million of cash and $256.7 million of debt a year earlier. The balance sheet expansion reflects the financing and balance-sheet mechanics associated with the Rhode acquisition. Cash generation from operations was $212.5 million for fiscal 2026.
e.l.f. Beauty’s Fiscal 2027 Outlook
The Zacks Rank #3 (Hold) company guided fiscal 2027 net sales in the range of $1,835-$1,865 million, implying expected growth of 12-14% year over year, with expected organic sales growth of 4-5% year over year. The company also projected adjusted EBITDA of $379-$385 million and adjusted net income of $198-$201 million.
The earnings presentation further outlined an expected gross margin level of 71% and a tariff outlook of roughly 35% for fiscal 2027, along with marketing and digital investment targeted at 23-25% of net sales, keeping the focus on balancing growth with margin management.
The company’s shares have lost 43.7% in the past three months compared with the industry’s decline of 32.3%.
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Stocks to Consider
Some better-ranked stocks have been discussed below:
The Estée Lauder Companies Inc. EL manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Nu Skin Enterprises, Inc. NUS engages in the development and distribution of various beauty and wellness products worldwide. At present, NUS carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for NUS’ current fiscal-year sales and earnings implies a decline of 4% and 21.3%, respectively, from the year-ago figures. NUS delivered a trailing four-quarter earnings surprise of 1.1%, on average.
Interparfums, Inc. IPAR manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company holds a Zacks Rank of 2.
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
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e.l.f. Beauty (ELF) : Free Stock Analysis Report
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