This article first appeared on GuruFocus .
E.l.f. Beauty Inc. ( NYSE:ELF ), the cosmetics and skincare company behind e.l.f., rhode and Naturium, rose 4.73% in premarket after it reported fiscal second-quarter net sales up 51% to $520.8 million. That was well ahead of analysts' consensus of $473.52 million and marks the company's 31st consecutive quarter of net sales growth. Adjusted diluted EPS rose to $1.21 from $0.68, while GAAP EPS came in at $0.50.
Gross margin widened about 160 basis points to 71%, including roughly 30 basis points from tariff refunds, with lower year-over-year tariffs and a favorable mix doing the rest. Adjusted EBITDA jumped 86% to $123.4 million, or 24% of net sales. Higher marketing, merchandising and distribution costs lifted SG&A by $69.0 million to $300.1 million. The gap between GAAP and adjusted profit included a $17.7 million fair value adjustment on the rhode acquisition, booked because rhode's revenue beat the earnout thresholds in its merger agreement.
E.l.f. raised its fiscal 2027 net sales outlook to $2.003 billion to $2.029 billion, or 22% to 24% growth, from 18% to 20% previously. It lifted adjusted EBITDA guidance to $421 million to $427 million, from $401 million to $407 million, and adjusted diluted EPS guidance to $3.82 to $3.86, from $3.50 to $3.55.
