ELF

ULTA jumps 4% and ELF rises 5% Monday, reversing Friday's selloffs after both beat Q2 estimates and raised full-year guidance. Beauty gains outperform a falling SPY and XRT, while TGT drops 1% after ending its Ulta shop-in-shop and launching its own Beauty Studio. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Beauty/cosmetics stocks are reversing Friday's post-earnings decline midday Monday, as two of the sector's most-watched names lead retail higher against a softer session for large-cap benchmarks. The rebound comes after both companies cleared quarterly estimates and raised full-year outlooks, only to see their shares sold heading into the weekend. Ulta Beauty (NASDAQ:ULTA) stock is up 4% to $538, while e.l.f. Beauty (NYSE:ELF) stock is climbing 5% to $108.92. Also framing the retail read, the SPDR S&P Retail ETF (NYSEARCA:XRT) is slipping 0.2% to $86.72. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.46% to $765.80, marking today's beauty bid as a targeted sector move rather than a broad risk-on rally. Ulta Beauty stock fell 4% to $517.18 Friday despite a Q2 2026 beat and a raised full-year guide, a decline covered in Friday's Ulta Beauty and e.l.f. Beauty pullback recap. Reporting Monday attributes part of the advance to an analyst upgrade, though the upgrading firm hasn't been confirmed and isn't being named here. Buyers are effectively taking the other side of Friday's fade, and the tone shift is testing whether that initial reaction was an overshoot on otherwise clean prints. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. In its Q2 2026 report, Ulta Beauty posted net income of $282 million, or $6.55 per share, against $260.9 million and $5.78 a year earlier, clearing the $6.20 consensus. Revenue grew 8.9% to $3.04 billion versus $2.99 billion consensus, and comparable sales rose 3.8% against the 2.3% analysts expected. The mix of top-line growth and above-plan comps is what bulls want to see from a specialty retailer navigating an uneven consumer. Ulta Beauty raised full-year EPS guidance to $28.70 to $29 from $28.36 to $28.80, its annual sales growth target to 6.7% to 7.2% from 6% to 7%, and its comp sales guidance to 3.2% to 3.7% from 2.5% to 3.5%. CEO Kecia Steelman stated the team is "executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests." Ulta Beauty and e.l.f. Beauty are rebounding from opposite starting points, and that divergence is the trade worth understanding. e.l.f. Beauty stock was up 37% year to date (YTD) through Friday's close, while Ulta Beauty stock was down 14% YTD through the same session. Similar-sized session pops carry very different meaning for each name, with e.l.f. Beauty extending a leadership run and Ulta Beauty trying to reclaim ground lost through the first eight months of the year. Target (NYSE:TGT) stock forms the third leg of today's beauty story. Target stock is down 1% to $161.52, even after finishing Friday up 71% YTD. The Ulta Beauty shop-in-shop partnership inside Target stores concluded in August after the two companies chose not to renew it, and Target is now launching its own Target Beauty Studio concept in more than 600 stores with dedicated beauty advisers. Target is sliding while both beauty pure-plays rally, which sharpens the read on where beauty share is being allocated in a post-partnership landscape. Investors can watch for whether Ulta Beauty stock reclaims its pre-earnings level of $544.99 and whether e.l.f. Beauty stock holds above $105 into the close. With XRT lower and SPY in the red, today's beauty bid reads like a focused sector rotation, and that raises the bar for follow-through into midweek trading if the broader retail sector doesn't join in. Position sizing matters here given the volatility around both names, and readers adding exposure should treat single-stock retail rebounds as tactical setups rather than trend confirmation. The unnamed upgrade adds momentum without a verifiable analyst thesis, so leaning too hard on today's move carries execution risk if a formal research note doesn't surface in the coming sessions. A modest starter position, sized to survive another gap lower, is the more defensible way to engage a same-day reversal like this one. The next scheduled catalyst for Ulta Beauty is its Q3 report, and e.l.f. Beauty holders can look to the company's next quarterly release for confirmation that its raised fiscal 2027 outlook is translating into sustained retailer sell-through. Between now and then, retail sector data and Target Beauty Studio's early rollout metrics will help set the tone for how beauty spending is being divided among the three names on the marquee today. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Ulta Beauty beat EPS by $0.35, raised full-year guidance, yet sank 6%, dragging e.l.f. Beauty down 2% on sympathy selling. XRT rose 0.7% and SPY held flat Friday, isolating Ulta Beauty's drop as single-name profit-taking, not a sector or macro event. A $500 support zone, 20x P/E, and $1.8 billion buyback program offer potential downside buffers for patient investors. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Beauty retail is delivering a curious reaction this morning as the sector's dominant name posts strong quarterly numbers yet loses ground in heavy trading. The reaction reads as classic profit taking after a prior run, since nothing in the release accounts for a decline of this size. Ulta Beauty (NASDAQ:ULTA) stock is down 4% to $517.18 in Friday morning trading. The company delivered a top and bottom line beat plus a full year guidance raise, adding to a strong recent run heading into the report. Also feeling the tug, e.l.f. Beauty (NYSE:ELF) stock is down 2% to $103.96 as sympathy selling spreads across specialty beauty. Even after this pullback, e.l.f. Beauty stock was up 40% year to date (YTD) through Thursday's close, so peer weakness is trimming a strong recent run rather than reversing it. Reporting after Thursday's close, Ulta Beauty posted net income of $282 million, or $6.55 per share, against $260.9 million and $5.78 per share a year earlier, clearing the $6.20 analyst estimate. Revenue grew 8.9% to $3.04 billion, above the $2.99 billion consensus. Comparable store sales advanced 3.8%, well ahead of the 2.3% analysts expected, with fragrance leading category strength and e-commerce delivering high teen sales growth. Management cited a sixth consecutive quarter of double-digit e-commerce sales growth and continued momentum in K-Beauty. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Management then raised full year guidance in three places. Full year earnings per share guidance moved to $28.70 to $29 from $28.36 to $28.80, the annual sales growth target moved to 6.7% to 7.2% from 6% to 7%, and comparable store sales guidance moved to 3.2% to 3.7% from 2.5% to 3.5%. CEO Kecia Steelman stated the company is strengthening its competitive position through a focus on innovation, value and convenience. Ulta Beauty operates more than 1,500 domestic stores and 88 international locations, expanding abroad through its Space NK subsidiary in the U.K. and Ireland, a joint venture in Mexico and a franchise in the Middle East. The SPDR S&P Retail ETF (NYSEARCA:XRT) is up 0.7% to $87.24 this session, a clear divergence from Ulta Beauty stock. That gap matters because it rules out a broader retail selloff as the trigger for today's move. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.49% at $774.92, indicating the wider market may be offering a mild macro headwind. Still, today's price action mainly reads as a single name repricing tied to positioning rather than a sector or index catalyst. e.l.f. Beauty stock is caught in a beauty-focused downdraft, though its 2% slide is far milder than Ulta Beauty stock's decline. That relative resilience aligns with e.l.f. Beauty's own recent momentum, since the shares had been running well ahead of the beauty complex heading into Friday. Selling into a beat isn't new for Ulta Beauty stock. The prior first quarter report also produced a beat and a 4.78% same day decline, and the Q2 2026 print showed a 14.61% surprise paired with a 7.14% same day drop. The pattern reflects elevated expectations after strong pre-report runs. Ulta Beauty stock was down 11% year over year (YoY) at Thursday's close, while SPY was up 13% YTD over the same stretch. That relative underperformance frames why any hint of a softer second half guide can prompt profit taking even when headline numbers clear the bar. Traders can watch for a stabilization near the $500 area, a psychological level that lines up with Ulta Beauty stock's 50-day moving average near $494.59 and could set the tone for how the reaction resolves into next week. Ulta Beauty carries a P/E ratio of 20x, which may cap further downside for value-oriented buyers. The bull case rests on the raised outlook, an expanded $1.80 billion buyback target, and durable fragrance and K-Beauty momentum. The bear case leans on a more measured second half comp guide of 2% to 3%, a promotional environment that ticked up, and a mass makeup category still running flat. Given the size of today's move against a clean report, ULTA investors should keep their positions modest and let the price action settle before adding exposure. A staged approach, sized to their risk tolerance, is preferable to chasing a name that just raised guidance under a single session of profit-taking pressure. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Sally Beauty Holdings, Inc. SBH posted fiscal third-quarter 2026 adjusted earnings of 55 cents per share, beating the Zacks Consensus Estimate of 53 cents. Net sales edged up 0.2% to $935.5 million and comparable sales were flat. Sally Beauty Holdings, Inc. price-consensus-eps-surprise-chart | Sally Beauty Holdings, Inc. Quote The quarter showed a widening gap between profitability and demand. Margin gains and cost actions supported earnings, but weakness in Care and Beauty Systems Group leaves the fiscal fourth quarter dependent on new assortment, digital and store initiatives. Adjusted earnings increased 7.8% year over year and topped the consensus estimate by 3.8%. Adjusted operating earnings reached $87 million, the high end of management's guidance range. Adjusted gross margin expanded 40 basis points to 52.4%, primarily on higher product margins from Fuel for Growth. That improvement helped SBH produce better bottom-line growth despite limited sales expansion. Sally Beauty's Supply net sales rose 2.2% to $538.6 million, while comparable sales increased 1.6%. Color sales advanced 8%, helping offset a 6% decline in Care. Beauty Systems Group moved the other way. Net sales fell 2.4% to $396.9 million and comparable sales declined 2.1%, with Care down 5%. The split makes category mix and BSG demand central to SBH's near-term earnings profile. Fuel for Growth delivered $9 million of pretax benefits across gross margin and selling, general and administrative expenses in the quarter. Sally Beauty's gross margin rose 60 basis points to 61.5%, while BSG's expanded 70 basis points to 40.1%. Management still expects approximately $45 million of fiscal 2026 benefits and about $120 million of cumulative run-rate savings over the three-year program by fiscal year-end. Continued margin support matters as higher labor and rent expenses keep pressure on operating costs. SBH narrowed fiscal 2026 net sales guidance to $3.725-$3.733 billion from $3.725-$3.750 billion. Comparable sales are now expected to increase approximately 0.5% compared with the prior range of flat to 1% growth. Adjusted earnings guidance tightened to $2.04-$2.08 per share from $2.02-$2.10. The higher low end preserves some earnings resilience, but the lower top end and narrower sales range leave less room for demand softness in the final quarter. The fiscal fourth-quarter watch list includes the early-stage Care reset, fragrance now in 2,000 stores, continued e-commerce growth, 17 additional Sally Ignited refreshes and the planned Happy Beauty e-commerce launch. Global e-commerce sales rose 11% in the third quarter, the fourth consecutive quarter of double-digit growth. Adjacent beauty retailers offer useful category context. Ulta Beauty, Inc. ULTA is a specialty beauty retailer spanning cosmetics, fragrance, skin care, hair care and salon services. e.l.f. Beauty, Inc. ELF operates across cosmetics and skin care and expanded into hair care in June 2026. For SBH, the test is whether its own initiatives create enough incremental demand to offset BSG and Care softness. SBH enters the final quarter with better margins, positive Sally segment growth and expanding digital activity, but BSG weakness and tighter sales guidance keep the operating picture mixed. Execution on Care, fragrance and store refreshes will determine whether profitability gains remain durable. SBH trades at 7.26X forward 12-month earnings, below the Zacks industry's 15.82X. The multiple is above the stock's one-year median of 7.05X, leaving the shares discounted to broader benchmarks but not to their own recent history. Image Source: Zacks Investment Research SBH carries a Zacks Rank #2 (Buy) and a VGM Score of A, alongside a Value Score of A, a Growth Score of B and a Momentum Score of D. The favorable Rank and A/B scores support the near-term profile, while the weaker Momentum Score tempers the signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sally Beauty Holdings, Inc. (SBH) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

e.l.f. Beauty (NYSE:ELF) reported first-quarter fiscal 2027 results on August 5, and the headline number is hard to ignore. Net sales grew 36% year-over-year, marking the company's 30th consecutive quarter of net sales growth, a streak stretching back more than seven years. Management says only 6 of 516 public consumer companies tracked have matched that pace while averaging at least 20% quarterly growth. On the back of it, e.l.f. raised its full-year outlook to 18% to 20% net sales growth, up from 12% to 14% previously. Of roughly 1,800 cosmetics and skin care brands Nielsen tracks, only 14 have topped $200 million in retail sales, and e.l.f. now owns four of them. Rhode, the Hailey Bieber brand, is the standout. It added about $160 million in net sales this quarter and posted $27 million in single-day sales on rhodeskin.com during its summer launch, pulling in 90,000 new customers while still drawing over 70% of sales from repeat buyers. International sales grew 61%, well ahead of the 29% domestic pace, as e.l.f. expands into Boots in the UK, Sephora in Brazil, and Naturium into Canada and Mexico this fall. Rhode itself launches with Sephora across 19 European countries in September. The company is also pushing into haircare, with its June launch of e.l.f. Hair drew nearly half its buyers from outside the existing e.l.f. customer base, a sign the newer categories are expanding the audience rather than just cross-selling it. Strip away Rhode and the core e.l.f. business told a different story this quarter. Organic net sales declined by a high single-digit percentage, and unit volumes fell about 3 percentage points even as pricing and mix added 39 points to overall growth. Management ran a pricing test this spring and ultimately cut prices on about 10% of e.l.f. SKUs to try to win back units, an acknowledgment that value positioning needed adjusting. Profitability also got a boost that will not repeat. Q1 gross margin jumped roughly 1,400 basis points to 83%, but over 1,050 of those basis points came from $50 million in IEEPA tariff refunds flowing through cost of goods. Adjusted EBITDA rose 93% to $168 million, yet excluding the refund, growth was 36%. Management plans to reinvest the entire refund through lower prices and marketing, which it expects to be a net zero benefit to full-year EBITDA. SG&A as a share of sales also climbed to 54% from 50% a year earlier, and the company still owes the first payment on Rhode's earnout later this year given how far the brand has outperformed. Hedge fund ownership ticked up from 38 to 39 funds, a modest gain that suggests accumulating rather than fleeing interest. Short sellers see it differently, with 16.01% of the float sold short, a level that points to real organized skepticism. Meanwhile, shares trade at a forward P/E of 33 as of August 13, a multiple that assumes the growth engine keeps firing well beyond this quarter's tariff windfall. e.l.f. Beauty's growth streak is real, and rhode's momentum plus the international rollout give it more than one lever to pull. But this quarter's best numbers leaned on a one-time tariff refund and aggressive pricing action inside the core brand, not just organic demand. For the bulls, Rhode's expansion and the haircare push need to keep adding new customers rather than just borrowing from existing ones. While we acknowledge the potential of ELF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

e.l.f. Beauty delivered a notably strong performance in Q2, with management attributing growth to robust brand momentum, new product launches, and targeted pricing actions. CEO Tarang Amin highlighted the benefits of a diversified portfolio and emphasized that recent innovations, such as the Main Stain Lip Marker and e.l.f. Hair, resonated with consumers. The reinvestment of tariff refunds into marketing and selective price reductions also supported unit momentum and further enhanced the company's value proposition. Is now the time to buy ELF? Find out in our full research report (it’s free). Revenue: $479.4 million vs analyst estimates of $431.8 million (35.5% year-on-year growth, 11% beat) Adjusted EPS: $1.75 vs analyst estimates of $0.72 (significant beat) The company lifted its revenue guidance for the full year to $1.95 billion at the midpoint from $1.85 billion, a 5.6% increase Management raised its full-year Adjusted EPS guidance to $3.53 at the midpoint, a 7% increase EBITDA guidance for the full year is $404 million at the midpoint, above analyst estimates of $376.7 million Operating Margin: 21.4%, up from 13.8% in the same quarter last year Market Capitalization: $5.61 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Olivia Tong (Raymond James) asked about the impact of recent price adjustments on consumer trial and unit sales. CEO Tarang Amin explained that permanent price reductions on 10% of SKUs drove significant unit momentum, and CFO Mandy Fields confirmed new shelf space in key international markets is included in guidance. Anna Lizzul (Bank of America) inquired why the full-year outlook raise appeared modest relative to Q1’s strong results. Fields clarified that the guidance reflects both core business growth and a full reinvestment of tariff refund benefits over the remainder of the year. Susan Anderson (Canaccord Genuity) questioned the turnaround in international performance, particularly in the U.K. and Germany. Amin cited improved marketing and retailer partnerships, resulting in positive growth trends in both markets. Cristian Rios Martinez (Bernstein) asked how e.l.f. Hair’s channel strategy would evolve. Amin responded that the product will remain a Target exclusive this year, with plans to expand to more retailers and channels over time. Steve Powers (Deutsche Bank) pressed for details on the timing and expected return of incremental marketing spend. Fields indicated spend will be weighted towards Q2–Q4, while Amin said both immediate and long-term returns are expected, with higher near-term marketing spend supporting brand-building across the portfolio. In the coming quarters, our team will be monitoring (1) the pace and sales impact of new international launches, particularly rhode’s Sephora rollout in Europe; (2) the effectiveness of elevated marketing investment in driving brand awareness and unit growth; and (3) the success of e.l.f. Hair’s exclusive partnership with Target as a signpost for potential expansion. Progress on supply chain diversification and product innovation will also be key areas of focus. e.l.f. Beauty currently trades at $94.78, up from $86.37 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

e.l.f. Beauty, Inc. ELF materially raised its fiscal 2027 outlook after first-quarter results showed faster growth from Rhode and international markets. Net sales increased 36%, while management lifted both sales and adjusted earnings guidance. The central issue now is whether those drivers can sustain the higher expectations. Rhode’s expansion, global distribution and reinvestment plans offer additional runway, but the stronger forecast also raises the execution bar for the rest of the year. Fiscal first-quarter net sales rose 36% to $479.4 million, topping the Zacks Consensus Estimate of $427 million. Adjusted earnings reached $1.75 per share versus the consensus estimate of 71 cents. The quarter marked ELF’s 30th consecutive quarter of net sales growth. U.S. net sales increased 29%, while international net sales advanced 61%, giving the raised outlook support from multiple markets. e.l.f. Beauty price-consensus-eps-surprise-chart | e.l.f. Beauty Quote Rhode contributed about $160 million of first-quarter net sales, exceeding management’s expectations. Management now expects Rhode to add about 13 percentage points to fiscal 2027 net sales growth before the acquisition annualizes in August, up from 9 points previously. Demand also showed repeat-purchase strength. Rhode’s summer launch generated $27 million of direct-to-consumer sales in one day, with more than 70% coming from existing consumers while 90,000 new consumers were added. Management now expects fiscal 2027 net sales of $1.938-$1.968 billion, implying 18%-20% growth. The prior forecast called for $1.835-$1.865 billion and 12%-14% growth. Adjusted earnings guidance increased to $3.50-$3.55 per share from $3.27-$3.32. For the second quarter, management expects total net sales growth in the mid-30% range, supported partly by improving e.l.f. trends and Rhode’s European launch pipeline. First-quarter gross margin increased about 1,400 basis points to 83%. Approximately 1,050 basis points of that improvement came from roughly $50 million of IEEPA tariff refunds. Management plans to reinvest the $50 million during the rest of fiscal 2027 through lower prices on selected products and higher marketing investment. The refunds are expected to have a net zero impact on full-year adjusted EBITDA because the benefit is being spent back into the business. Rhode is scheduled to launch with Sephora across 19 European countries in September. ELF also plans to expand e.l.f. with Sephora in Brazil and Naturium with Sephora in Canada and Mexico, broadening the geographic base behind the raised outlook. Beauty demand remains active across major peers. Ulta Beauty, Inc. ULTA reported 11.1% net sales growth and 5.3% comparable sales growth in its fiscal first quarter. The Estee Lauder Companies Inc. EL reported 2% organic sales growth in its fiscal third quarter and raised its fiscal 2026 organic sales outlook to about 3%. Image Source: Zacks Investment Research The bottom line is that ELF enters the balance of fiscal 2027 with higher expectations supported by Rhode, international growth and a stronger companywide forecast. Reinvestment and the need to sustain organic improvement keep execution central to the outlook. ELF currently carries a Zacks Rank #1 (Strong Buy) and a Growth Score of A. The favorable Growth Score complements the top Zacks Rank by highlighting growth characteristics and financial strength that can matter to near-term stock selection. You can see the complete list of today’s Zacks #1 Rank stocks here. The broader Style Score picture is mixed. ELF has a VGM Score of C, Value Score of F and Momentum Score of D, suggesting that growth characteristics are more favorable than its value and momentum profiles. Those readings provide a counterweight as investors assess the durability of the post-earnings improvement. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report e.l.f. Beauty (ELF) : Free Stock Analysis Report The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Vice President of Corporate Development and Investor Relations - Kristina Casey Katten Chairman and Chief Executive Officer - Tarang Amin Senior Vice President and Chief Financial Officer - Mandy Fields Kristina Casey Katten: Thank you for joining us today to discuss e.l.f. Beauty's First Quarter fiscal '27 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 webcast over to Tarang. Tarang Amin: Thank you, KC, and good afternoon, everyone. I'm proud of the e.l.f. Beauty team for achieving another quarter of industry-leading results. In Q1, we grew net sales 36% and delivered our 30th consecutive quarter of net sales growth. That's over 7 continuous years of net sales growth. We're 1 of only 6 public consumer companies out of 516 that has grown for 30 straight quarters and averaged at least 20% net sales growth per quarter. This consistent category-leading growth is a testament to the strength of our team, strategy and portfolio of brands. With the momentum we're seeing, we're raising our fiscal '27 outlook to 18% to 20% net sales growth as compared to 12% to 14% previously. We have strength across our diversified portfolio of brands. For context, out of approximately 1,800 cosmetics and skin care brands tracked by Nielsen, only 14 have surpassed $200 million in retail sales. We have 4 brands to surpass this threshold, each built on the same winning combination, value proposition, powerhouse innovation and disruptive marketing engine. e.l.f. Cosmetics holds the #1 rank in unit share and #2 in dollar share. e.l.f. SKIN has risen from the #25 mass skin care brand a few years ago to the #11 brand. Naturium is the fastest-growing skin care brand among the top 50. And rhode, the breakthrough beauty brand founded by Hailey Bieber, continues its outstanding growth. We believe rhode could be the fastest beauty brand to achieve $1 billion in net sales. As e.l.f. Beauty scales towards $2 billion in net sales, we believe the continued diversification of our business across brands, categories, channels and supply chain positions us well for the next chapter of growth. Over the past 3 years, we've grown non- e.l.f. sales from less than 1% to over 30%. Skin care from 10% to nearly 25% and digital penetration from 18% to 30%. I'm also proud of the incredible work the team has done to further diversify our supply chain. Just a few years ago, only 1% of our production came from outside of China. By the end of this fiscal year, we expect to be around 60%. We now have a more robust supply chain to meet the global demand that we see for our brands while maintaining our unique combination of quality, cost and speed. Looking at our most recent results, let me provide an update on each of our brands. Starting with e.l.f., as we talked last quarter, we're taking a series of actions to strengthen the e.l.f. brand across 5 key areas: value proposition, powerhouse innovation, disruptive marketing, international expansion and category adjacencies. First, value proposition. For 22 years, we've democratized access to the best of beauty. The average price point for e.l.f. Cosmetics is about $7 as compared to over $10 for legacy mass brands and over $30 for prestige brands. At a time when consumers remain concerned about the economy, our value proposition has never been more important. To that end, last quarter, we spoke about the pricing actions we're taking to drive unit momentum. We began a price discovery test in May, expanding what initially was a temporary price reduction on a single product to the majority of e.l.f. brand SKUs. We learned through this testing that the vast majority of our SKUs are priced appropriately, reinforcing our value proposition. We did identify about 10% of our SKUs where we believe we can drive units by maintaining lower prices. The remaining SKUs will return to their pretest prices over the next couple of weeks. These pricing actions strengthen our confidence in delivering a superior value proposition. Second, powerhouse innovation. Our community-led innovation model is one of our most durable competitive advantages. We listen closely to our community and quickly translate their requests into premium quality products at extraordinary prices. Our fall 2026 innovation hit shelves in July, and we're pleased to be delivering ahead of our expectations. Across the mass cosmetics category so far this season, e.l.f. holds 4 of the top 10 new launches in dollars and 5 of the top 10 in units. Our Main Stain Lip Marker, Power Grip Rose Setting Spray and Cream Blush & Bronzer Duo Brush, Sheer For It Blush Tint and Thirst Burst Lip Treatment all are resonating with consumers. [Presentation] Tarang Amin: In parallel as we spoke about last quarter, we have fast-tracked additional innovation our community's been asking for. We aim to have these products in the market before the holidays. Third, disruptive marketing. We're leaning into our disruptive marketing engine to fuel e.l.f.'s brand awareness and deepen the connection we have with our community. We have a track record of delivering marketing ROIs multiples above industry benchmarks, growing e.l.f.'s unaided awareness from 13% to 45% in just a few years and becoming the most purchased brand among Gen Z, Gen Alpha and millennials. Today, e.l.f. Cosmetics is purchased by approximately 1 in 3 women in the U.S., which means 2/3 of the market is still ours to reach. In Q1, we received approximately $50 million of IEEPA tariff refunds. We plan to fully reinvest these funds in our business this year, largely through a combination of the pricing actions I spoke about and increased marketing investment to support key innovation and delight our community. We believe this reinvestment approach is the right one. It supports our brands, strengthens our competitive positioning and sets us up for long-term growth. Fourth, international expansion. Over the last 5 years, we've doubled our international penetration to 21% of our net sales. With legacy beauty peers having over 70% of their sales outside the U.S., we see a clear runway for growth. In fiscal '27, we're focusing on growing share for the e.l.f. brand in our largest markets, the U.K., Canada and Germany by activating our marketing engine and extending our brand reach. To that end, we're excited to announce that we'll be expanding our presence in Boots, the U.K.'s leading destination for beauty in the fall of this year. We also plan to selectively seed the e.l.f. brand in new markets and capitalize on the growing global demand we see from our community. This fall, we're excited to launch e.l.f. with Sephora in Brazil, the world's third largest cosmetics market. With this launch, we're furthering our presence in Latin America and building upon the #1 cosmetics brand ranking we've achieved with Sephora in Mexico. Fifth, category adjacencies. e.l.f. is a highly elastic brand as demonstrated by our success in cosmetics and skin care. With e.l.f. SKIN, we've applied the same innovation playbook that fueled e.l.f. Cosmetics, taking inspiration from our community and the best products in prestige then bringing those innovations to market at extraordinary value with our Signature e.l.f. twist. It's working. In just a few years, e.l.f. SKIN has risen to the #11 mass skin care brand in the U.S. Yet we hold only a 2% share of the mass skin care category compared to the #1 brand at 13%, illustrating the significant runway ahead of us. This fall, we're excited to launch e.l.f. SKIN at Dollar General, meaningfully expanding our reach and building on the success we've achieved in cosmetics. Looking beyond cosmetics and skin care, our community continues to request e.l.f. enter other categories with over 75% purchase intent for haircare. We answered the call in June with the launch of e.l.f. Hair, a curated 6 product assortment, all priced at $10 or less. Entering haircare represents a strategically important expansion into a large, growing and highly complementary beauty category. Haircare is an approximately $17 billion category in the U.S., growing faster than both cosmetics and skin care. e.l.f. Hair debuted on TikTok Shop, fueling discovery and excitement, followed by an exclusive nationwide launch with Target. We supported the launch with our buzzy, What the h.e.l.f.? campaign. [Presentation] Tarang Amin: We're excited by the early results with nearly half of e.l.f. Hair purchasers new to the e.l.f. brand. We plan to nurture e.l.f. Hair with Target as we see it having similar potential to e.l.f. SKIN over time. Turning to Naturium. Naturium's remarkable growth is fueled by its clinically effective biocompatible skin care products. In Q1, Naturium unveiled Glow Better Together, a new brand campaign celebrating the people, relationships and rituals behind its best-selling Glow Better collection. [Presentation] Tarang Amin: We're excited about Naturium's runway for growth, both in the U.S. and internationally. Since launching with Sephora in Australia and New Zealand last October, Naturium has already achieved the #1 ranking in body, a testament to the brand's global appeal and the power of our go-to-market approach. Building on that momentum, we're thrilled to announce that Naturium will be launching with Sephora in Canada and Mexico this fall. Finally, rhode. Rhode's growth continues to be exceptional. The combination of rhode's curated product assortment and powerful consumer engagement model has translated into record-setting consumer demand. In the last year alone, we executed record-breaking launches with Sephora in North America and the U.K. and with Mecca in Australia and New Zealand, achieving the #1 beauty brand ranking in both retailers. As great as these results are, rhode is in less than 20% of Sephora stores globally. That's why we're excited to launch rhode this September with Sephora in Europe across 19 countries. What gives us further confidence in the durability of rhode's growth is that each new class of innovation continues to build, underscoring the power of the brand and the strength of repeat purchases. Rhode's latest summer product launch drove $27 million of DTC sales in a single day. Yes, $27 million of sales on rhodeskin.com in a single day. We acquired 90,000 new consumers that day while also seeing strong repeat purchases with over 70% of sales coming from existing consumers. Rhode's Summer Station Tour further amplified the launch with a series of high-impact experiential pop-ups, reinforcing its cultural relevance and nurturing its growing community of fans. In summary, I feel great about our strong start to fiscal '27, and I'm excited about where we're headed. I'm so proud of our passionate team of owners who have delivered consistent industry-leading results. As we look ahead, I believe we're well positioned for continued growth across our portfolio of disruptive brands that are winning with the next generation of consumers. We have a proven strategy, a track record to be proud of and major white space ahead of us, and we're just getting started. I'll now turn the call over to Mandy to discuss our first quarter results and raise outlook for fiscal '27. Mandy Fields: Thank you, Tarang. Q1 net sales grew 36% year-over-year. Organic net sales, excluding rhode, were largely in line with the high single-digit decline we outlooked as we lapped a busy shipping period last year as we prepared for our ERP cutover in Q2 and as we cycled the launch of e.l.f.'s Glow Reviver Melting Lip Balm. Rhode outperformed our expectations in the quarter, contributing approximately $160 million in net sales, driven by strong retail demand and a record-breaking summer innovation launch on rhodeskin.com. U.S. net sales grew 29% in Q1, while international net sales grew 61%. Pricing and product mix added approximately 39 percentage points to net sales growth in Q1, while unit volumes were down approximately 3 percentage points. Q1 gross margin of 83% increased approximately 1,400 basis points compared to prior year. Approximately 1,050 basis points of that increase was driven by $50 million of IEEPA tariff refunds received in the quarter and flowing into COGS. Excluding this benefit, gross margin was still meaningfully higher year-over-year, up about 350 basis points, reflecting benefits from pricing and lower year-over-year tariff rates. On an adjusted basis, SG&A as a percentage of sales was 54% in Q1 as compared to 50% in Q1 last year. The primary driver was continued investments in team and infrastructure, along with investments in merchandising and distribution. Marketing and digital investment for the quarter was 22% of net sales, below our expectations due to timing of spend and flat to last year. Q1 adjusted EBITDA was $168 million, up 93% as compared to $87 million in Q1 last year. Excluding the impact of tariff refunds, our adjusted EBITDA was up 36% year-over-year. Adjusted net income in Q1 was $105 million or $1.75 per diluted share compared to $51 million or $0.89 per diluted share a year ago. The impact of tariff refunds was an approximately $40 million benefit to adjusted net income or approximately $0.68 per diluted share. Moving to the balance sheet. We believe the strength of our balance sheet continues to position us well to execute our long-term strategic plans and invest in the growth of our business. We ended Q1 with $344 million in cash on hand compared to a cash balance of $170 million a year ago. Note, our June ending cash balance included $53 million in tariff refunds, inclusive of interest we received in the quarter. In Q1, we repurchased approximately $50 million of our outstanding common stock given the disconnect between e.l.f. Beauty's market valuation and the strength of our business fundamentals. We expect our cash priorities to remain focused on investing in our business to support the runway for growth we see ahead. In fiscal 2027, as Tarang spoke about, we plan to reinvest the $50 million of tariff refunds we received largely through a combination of lowered prices on a subset of our portfolio and increased marketing investment across our brands. We also plan to invest behind technology, including AI capabilities and Phase 2 of our SAP integration and working capital to support our brand expansions globally, particularly with rhode's launch into Europe. Additionally, we expect to use a portion of our cash to satisfy the first payment of the rhode earnout later this year, given the brand's outperformance. Our liquidity position remains strong with less than 1.5x net debt to adjusted EBITDA. Now let's turn to our updated outlook for fiscal '27. We are raising our outlook on both the top and bottom line. For the full year, we now expect net sales growth of approximately 18% to 20%, up from 12% to 14% previously. Adjusted EBITDA between $401 million to $407 million, up from $379 million to $385 million previously. Adjusted net income between $212 million to $215 million, up from $198 million to $201 million previously. And adjusted EPS of $3.50 to $3.55 per diluted share, up from $3.27 to $3.32 previously. We continue to expect our fiscal ' 27 adjusted tax rate to be approximately 25% to 26% and a fully diluted average share count of approximately 60.5 million shares. Let me provide you with additional color on our planning assumptions for fiscal '27. Starting with the top line. For the full year, we expect net sales growth of approximately 18% to 20% year-over-year, up from 12% to 14% previously. We expect rhode to contribute approximately 13 percentage points to net sales growth in fiscal '27, up from 9 percentage points previously for the 4-month period until we annualize the acquisition in August. On an organic basis, we expect to deliver 6% to 7% net sales growth in fiscal '27, up from 4% to 5% previously. Our outlook implies 10% to 12% organic net sales growth for the balance of the year, up from 7% to 9% previously. This improved outlook reflects our expectation that all brands in our portfolio grow for the balance of the year. Looking to Q2, we expect to deliver total net sales growth in the mid-30s. This is better than our prior outlook on both a total and organic basis, supported by improving trends on e.l.f., cycling a period where we stopped e.l.f. brand shipments on orders that did not reflect last year's price increase and pipeline shipments for rhode's launch with Sephora in Europe. From a profitability perspective, we now expect adjusted EBITDA of $401 million to $407 million in fiscal '27, growing 20% to 21% year-over-year, up from the $379 million to $385 million or 13% to 15% growth previously. As I discussed earlier, our outlook assumes that we will fully reinvest the $50 million of tariff refunds we received this quarter, largely through a combination of lowered prices on a subset of our portfolio and increased marketing investment across our brands. We expect gross margin in fiscal '27 to be up approximately 200 basis points year-over-year as compared to our outlook for about flat previously, largely driven by the upside we saw in Q1. Excluding tariff refunds, our fiscal '27 outlook remains unchanged at approximately flat gross margin year-over-year. As a reminder, we expect gross margin benefits from lower year-over-year tariff rates and price increases, particularly in the first half of our fiscal year, to be offset by mix as rhode continues to transition further into retail. We expect marketing and digital spend as a percent of net sales for the full year to be at the high end of our previous 23% to 25% range. As we look to the balance of the year, marketing and digital is planned to track ahead of that range given the underspend in Q1. Our outlook implies mid-teens adjusted EBITDA margins for the balance of the year given the timing of our reinvestment spending. The tariff refund benefit was captured in Q1, and we'll be reinvesting that over the balance of the year to an expected net 0 adjusted EBITDA impact on the full year. For the full year, we continue to expect adjusted EBITDA margins of approximately 21%, up 20 basis points year-over-year. In summary, Q1 marked our 30th consecutive quarter of net sales growth, a testament to the durability of our model and the power of our brand portfolio. We are taking targeted actions to strengthen the e.l.f. brand while continuing to invest behind all of our brands. We remain confident in the strength of our fundamentals and excited about the opportunity ahead. With that, operator, you may open the call to questions. Operator: [Operator Instructions] And our first question today will come from Olivia Tong with Raymond James. Olivia Tong Cheang: With the price adjustments that you've now implemented, can you talk about what you've seen over the last few weeks generating more trial? Is it bringing certain consumers back? And what you're assuming with the guide in terms of new shelf space? And then also how you think about the offsets to minimize the margin impact of the change on the products where the price reductions will be permanent? And then secondly, on rhode, fantastic performance. It's now been about a year since it was acquired. So -- perhaps can you talk about some of the key capabilities that rhode has brought to e.l.f. the company and what e.l.f. the company has brought to rhode? What do you think are the biggest unlocks? And what do you think is the right pace for further geographic expansion? Tarang Amin: Olivia, this is Tarang. So first, on the pricing adjustments, I feel great about the work the team has done on our price discovery. As you recall, last August, we took our prices up $1 in response to tariffs and inflationary pressures. Overall pricing action was successful. We grew dollars in the process, but we did see a degradation in units. So the objective of our price discovery test was to see how can we further drive unit momentum. What started with a single item, we expanded to the majority of e.l.f. SKUs. And what we found through the price discovery test is 2 things. First, 90% of our SKUs were priced appropriately. e.l.f. has pricing power and continues to deliver an extraordinary value every day. Second, we did identify about 10% of our SKUs that by maintaining the lower price, we could drive significant unit momentum. And so we're going to keep that 10% at the lower pricing while the other items go back to the original pre-price levels. And what we found, obviously, you've seen in some of the scanner data, an improvement in overall trends, both in dollars as well as units. So I feel really good about the pricing action. And then on -- in terms of the long-term offsets on that pricing action, the good news is the 10% of SKUs that we did see higher unit momentum, we actually believe we can grow gross profit dollars over time through that pricing action. That's how strong the unit movements were on that 10% of items. So we invest in both places, both reinforcing our value proposition, offering a superior value every day and identifying things that we can do to further drive unit momentum. And then on your second question on rhode. Rhode is just a phenomenal brand. I've been in the consumer space 35 years, and it's probably one of the most special brands I've ever seen. What rhode's brought to e.l.f., obviously, is tremendous growth, bringing more consumers into e.l.f. Beauty. We've had just a tremendous amount of success. Our launches into Sephora in North America and the U.K., Mecca in Australia and New Zealand. We saw record-breaking results in terms of the launch, but we've maintained the #1 ranking in both those retailers. So I'm particularly excited about the upcoming expansion that we see. In addition, rhode very much fits the culture of e.l.f. from the team all the way to our approach in terms of how we engage consumers, including the strength of innovation. I mentioned in the prepared remarks, the Summer of rhode launch that we did in terms of our innovation anchored by our highlighting milk and the Putty Bronzers, they did $27 million of sales in 1 day on rhodeskin.com. And to put that in perspective, we often talk about Nielsen tracking 1,800 cosmetics and skin care brands. Rhode did in day more than what 98% of those brands do in an entire year. So there's just been a tremendous amount of momentum on rhode. And I'd say in terms of what e.l.f. Beauty brings to rhode in terms of our capabilities, certainly, that expansion ability of executing with excellence, our launch with Sephora and Mecca, the upcoming launch we have with Sephora all through in the 19 countries in Europe, certainly leverages our entire distribution network. I think there's a great deal of synergy when you think about our approach from a marketing standpoint, innovation standpoint and overall team. And we've doubled the size of the rhode team in the 1 year that we've had that brand from about 50 people to over 100 people really building the capabilities that we're known to be able to do. And the last thing I would say is we continue to build the awareness on the rhode brand. We're investing more in marketing. We're investing -- taking the tariff refunds and really investing across the entire portfolio of brands. As successful as rhode has been, unaided awareness on rhode is still in the high single digits. So we have a major opportunity to bring more consumers in. So it's just been the perfect acquisition on every front. And what makes me most proud is just the one team, one dream philosophy that, that team and the entire e.l.f. team buys into. Mandy Fields: And Olivia, this is Mandy. I think you also had a question on new shelf space included in the guidance. And just to recap what we talked about on the call, on e.l.f., we're getting expanded space in Boots in the U.K., Dollar General with our e.l.f. SKIN and also going to Sephora in Brazil on e.l.f. And then on Naturium, we have Sephora Canada and Mexico, and Tarang just spoke to you about the expansion on rhode in 19 countries in Europe. Operator: And our next question will come from Anna Lizzul with Bank of America. Anna Lizzul: Mandy, I wanted to touch on the guidance here. We certainly appreciate the big beat in fiscal Q1 as well as the guidance raise, but the raise does get eaten up a bit by the beat. So I was wondering if you could talk about your decision to only raise by this amount given the momentum that you're seeing across the business and in particular, on rhode. And then secondly, I was wondering if you could talk about your entry into the Hair category. Where do you see this sitting on the shelf ultimately if this is introduced initially in the cosmetic aisle like you did for e.l.f. SKIN? Do you see a possibility for breakout further along? Mandy Fields: Anna, I'll take that first question on the guidance. One, I just have to say I'm just so proud of this team and what we've been able to deliver in Q1, 36% net sales growth, 93% growth in adjusted EBITDA is fantastic. And even with the tariff refund, if we exclude that from our Q1 results, we still would have been up 36% on adjusted EBITDA in the quarter. So very strong results overall. In terms of the raise, a very strong raise as well. We're going from 12% to 14% net sales growth to 18% to 20% on our outlook. And then on the adjusted EBITDA side, going from $385 million on the top end last time around up to $401 million to $407 million in adjusted EBITDA. That's 21% growth in adjusted EBITDA on the top line -- on adjusted EBITDA overall. So $100 million nearly raise on top line, $22 million on adjusted EBITDA, I think, is very strong first quarter out. And so we're feeling great about the beat and the raise that we've been able to flow through this time around. And maybe just to touch on adjusted EBITDA a little bit more, just to double click. I just want to make sure everybody is tracking with me. So we got the $50 million of tariff refunds in Q1, but we are not able to reinvest really any of that in Q1 just given the timing of when that came in. So you're going to see that $50 million reinvested Q2 through Q4, okay? Netting to 0 on the year. So if you put the tariff refund aside and think about the raise on the year from an adjusted EBITDA standpoint, that's really driven by the core business, not by the tariff refund. We plan to spend all of that back. And so again, just coming back to it, 21% growth on adjusted EBITDA is our projection for the year, which we believe is quite strong. Tarang Amin: Anna, this is Tarang. I'll take your second question on e.l.f Hair. We're extremely excited. It's a meaningful strategic adjacency for us. Haircare in the U.S. alone is a $17 billion category growing faster than cosmetics and skin care. And it's a category, frankly, our community has been asking for a long time, about 75% intention behind -- purchase intention behind Hair. And it's done the e.l.f. way. So I'll use the analogy of e.l.f. SKIN where we can take that same model that e.l.f. is known for, which is taking inspiration from prestige, putting our e.l.f. twist on, and introducing it in an incredible value. So e.l.f. Hair starts with a six-product curated lineup that all have prestige equivalents but are priced $10 or less. We've seen 99% positive consumer intention behind it. We're well ahead of our expectations. This is a launch that we are launching exclusively with Target, similar to our approach that we first started on e.l.f. SKIN to help nurture the brand. We and Target are extremely excited, and we believe this could be a really big category for us in the future, similar to what we've been able to do with e.l.f. SKIN. Again, really off to a strong start on Hair and very bullish on its future. Operator: And our next question will come from Susan Anderson with Canaccord Genuity. Susan Anderson: I'm curious if you could give some color just on the e.l.f. brand performance in the international markets, particularly U.K. and Germany? I guess, have you seen any improvement there? And then also just back to the price investments. It sounds like the initial 10% you really saw the biggest move. And so curious, the rest of the price investments, if you really just didn't see that much elasticity, which is why you're raising it back? Tarang Amin: Susan, this is Tarang. I would say we're seeing meaningful improvement on the e.l.f. brand internationally in the U.K. and Germany. I'll start with Germany. As you recall, our results were weighed down by lapping the massive launch we have with Rossmann in Germany. We've now introduced the brand with DM in Germany, and we've seen a major turn in that market to a very strong positive growth. U.K., similarly, we had some pretty negative trends. It was a very promotional environment. We weren't participating in a lot of those promotions. We've now turned on our awareness building and marketing activities in that market and have also seen a major improvement in that market. In addition, to show the confidence our retailers have in us, we have a pretty big expansion coming with Boots this fall. So I feel really good about kind of the progress in both those markets, as well as continue to seed the brand in new markets. I'm very excited about the launch we have coming up with Sephora in Brazil. It's the third largest cosmetics market in the world, and we've had long pent-up demand for e.l.f. in that market. So really, really pleased to bring it there. So making good progress on international, not just only on e.l.f., but really across the portfolio of Naturium and rhode as well. Mandy Fields: And on the price investments -- I'm sorry, just to answer Susan's question on the price investments, what we saw, as Tarang talked about, 90% of our portfolio on e.l.f., we feel is appropriately priced. While we saw unit improvement on some of those items, it just was not enough to justify the investment that was being made there. The team was very thoughtful about what we wanted to do as we move forward, and that 10% was really identified can move units, we expect sales and gross profit. And so really, we think that those -- that subset of SKUs is the right set to remain at the lower price point. Operator: And our next question will come from Cristian Rios with Bernstein. Cristian Rios Martinez: I wanted to understand a little bit more what's your channel strategy for haircare? Where exactly is being sold now? And do you have a road map with milestones for expansion across your ecosystem of channels? How are you going to be thinking about expanding to new doors over the next couple of years? And then two, on just a modeling question. I understand that the tariffs were reinvested. I wanted to understand if we should think about those reinvestments as onetime too? Or will they become a headwind next year when you don't have the refunds on the market? Tarang Amin: Cristian, this is Tarang. I'll take the first question. On haircare, I would say I didn't answer the first question that was given in terms of where it's shelved's. Haircare is going to be shelved in the haircare aisle. We have a great place in the haircare aisle with Target. In addition, we have incremental merchandising space as well to really bring haircare to life. And that would be our strategy going forward as haircare will be in the haircare aisle. And if you go into a Target, you can see the presentation there. From a channel standpoint, as I mentioned, we are exclusive with Target through this fiscal year. That's part of us nurturing. Obviously, Target is our longest-standing national retail customer, very similar approach to what we took with e.l.f. SKIN. We started exclusively with Target and then expanded from there. And we would expect to do the same thing with e.l.f. Hair over time. But for this fiscal year, it will be a Target exclusive, and we'll continue to nurture the brand with them. Mandy Fields: And then on your question on the reinvestments, we're going to -- Q2 through Q4, we're going to be investing that primarily behind marketing also with the pricing that we've been discussing today. And that is a onetime investment versus the $50 million is also a onetime inflow. And so as we get into fiscal '28, we'll work through that. But I would tell you, we have a great track record of EBITDA growth over time. And so just really wanted to put this money to work in this year as we are seeking to kind of drive unit volumes and use that as a way to better connect with our communities. And so more to come as we get into fiscal '28. Tarang Amin: And the only other thing I would add is we feel great about the investment in marketing. Our marketing is working. We've long had ROIs multiples above the industry benchmarks. You saw the level of awareness we've built with e.l.f. over time from 13% to 45%. Every single brand metric is extremely strong. And we're the #1 brand amongst Gen Z, Gen Alpha and millennials. So we feel great about that marketing investment, continue to double down on that as well as put more marketing dollars against the growth we're seeing in Naturium and rhode. We have major opportunities even with the strong growth of both those brands to continue to bring more consumers into those franchises. So we feel these are the right investments not only for right now, but to really set up our brands for the right trajectory long term. Operator: And our next question will come from Sydney Wagner with Jefferies. Sydney Wagner: Just one more on pricing. So of the 10% of SKUs where maintaining the lower prices was justified with the additional unit growth, what characteristics did those products have in common? And what were the learnings from kind of the commonalities there? And then just curious how those translate into your thinking for the ex-U.S. business? And then just maybe more broadly on the international strategy, it sounds like the core e.l.f. brand performance has stabilized in some of the key markets. How are you thinking about the cadence of new geographies and launches there for the core e.l.f. brand? Tarang Amin: So Sydney, one of the reasons why we did a very broad test is our hypothesis was we have a great value proposition, but let's really isolate the SKUs where you could see disproportionate unit movement. We talked last quarter about our skin tints, taking those from $18 to $14. Initially, we saw a 40% lift in units. More recently, it's been between 60% to 80%. So it's really going after a targeted approach of finding those items where taking -- keeping the pricing lower would result in a disproportionate amount of unit movement. And that really is what we saw. And it was across the line. It wasn't any particular segment. It wasn't just on our lowest priced items. It really depended on the particular item and its competitive set. And so that's why we went so broad to really discover what those specific items were. And again, reinforce that 90% of our items were priced appropriately, and we continue to deliver a great value. And this overall action will strengthen our overall value proposition in the marketplace, which is what we're most known for. So we feel really great about that. And then in terms of how it translates internationally, we're using a similar approach internationally in terms of looking, each market is different. We don't -- we're not doing the same level of broad price discovery, but we have identified certain items that we believe would drive higher unit movement through some pricing actions there, but that's more limited in nature. And then from an international cadence standpoint, what I feel best about our international business is the strength of our portfolio internationally. If you take a look at rhode, getting into 19 countries with Sephora in Europe. If I look at Naturium in Canada and Mexico with Sephora, continued expansion of the markets. And then e.l.f., we talked about Sephora. We talked about doubling down in terms of our presence in the U.K. with Boots as well as other markets. So you're going to see a better balance from us going forward. I feel like we -- I think one of our learnings was we are opening up new markets pretty much every quarter. I think you're going to continue to see us open up new markets, but it came at the expense of the focus on our core markets. And I think we have a much better approach now of really making sure we're putting the full e.l.f. marketing model in those countries, we have very strong ACV coverage. So both in the U.K. and Germany, we have over 75% ACV of the mass category. It justifies ongoing marketing support in those markets to continue to build that business year in, year out, the way we have in the U.S. while continuing to seed new markets. I like the balance that we have in our plan that you'll continue to see not only on e.l.f., but across our portfolio. Operator: And our next question will come from Andrea Teixeira with JPMorgan. Andrea Teixeira: I wanted to just go back to -- I remember Tarang and Mandy used to give us an idea how you're going against the category, especially in the e.l.f. Beauty, obviously, heritage brand and against also SKIN -- e.l.f. SKIN. Just to kind of gauge what your growth has been. I remember coming from [ 8% ] to about [ 6% ] then to about [ 3% ] globally. Just curious how that reaccelerated? And then as we think about -- I totally understand the $50 million was not there to begin with. You're reinvesting 100% of it. But just curious to see how the percentage of sales, you've been -- I understand the pricing component, but on the percentage of sales of marketing, you're already at around 24%. So that will take you, I mean, by my math, probably to 25%. I was just curious to see how -- and Mandy, you discussed saying this is going to be a onetime effect and then you can pull back and deleverage again and have the operating leverage. Because I think part of your success over the years has been not only, of course, the top line is the paramount is the driving force, but you also had some operating leverage as we go. Just curious to see how the balance is. And again, by my math, you probably need only about $25 million even without to invest back about $1 that you added for this 10%. So coming back to the same price levels that you were before the price increase. And then the balance would be about half of it would be invested in marketing. So just like double-click on that, if you can. I know it's a 3-part question, but if you can also confirm that it's about half of the $50 million would be reinvested in marketing? Tarang Amin: So Andrea, I'll start with the first question. We're feeling really great about the targeted actions we have against the e.l.f. brand. As I talked at length here on the pricing actions to reinforce our value proposition. Our fall innovation is off to a strong start. It's ahead of our expectations and offer a terrific value. If I look at our Main Stain Lip Marker at $5 versus prestige at $25, our Sheer For It Blush Tint at $5 versus a prestige item at $28. These are items that have a clear point of reference with prestige and offer a terrific value. We're seeing momentum there. As we talked in terms of marketing and the incremental marketing dollars we have, we feel good about investing those across our portfolio of brands. I already talked about haircare and the bullishness we have on haircare, not only for this year but long term. And then international as we continue to seed the brand. And you've certainly seen it in improved trends. If you look at the scanner data, both in terms of units as well as dollars. We continue to expect that to improve as we have these focused actions in market. And so overall, I feel great about the brand. And even with the slowdown that we had over the last number of months in the last year, we picked up 60 basis points of market share. It's the most basis points of market share gain out of the top 10 brands. So I would say I feel great about the brand and particularly over a longer arc, but even more recently and with the actions that we're taking. Mandy Fields: And then on the reinvestment question, Andrea. So from a marketing as a percent of net sales, we still anticipate that 23% to 25% range. We're going to be towards the higher end of that range. And as I said on the call, Q2 through Q4 may even be beyond that range as we seek to kind of hit that 25%, given that we underspent in Q1. And so that's from a percent of net sales, how we're managing marketing, very consistent with where we've been these last 7 years in terms of managing it as a percentage of sales. And then on the reinvestment split between kind of pricing and marketing, I would say a portion goes towards the pricing piece, but majority is going to go across marketing across our brand portfolio is the way we're thinking about that. Operator: And our next question will come from Steve Powers with Deutsche Bank. Stephen Robert Powers: Maybe it doesn't sound like it, but do you have any kind of prescribed notion as to the timing of that incremental spending over the next 3 quarters? That would be question number one. Question number two is, what portion of the incremental spending do you expect will yield a return in the current fiscal year versus being more longer-term brand equity building in nature? And to the extent that it is supposed to yield a return in this year, I would assume the pricing, for example, would. Is that now contemplated in your guide because I think it wasn't when we started the fiscal year? And then question number three on a different tack, if I could, is that I didn't hear anything -- maybe I missed it, but I didn't hear anything on an updated cost inflation outlook, whether with regard to freight or packaging or the like. Just any thoughts on that and whether that now is included in your guide or if it's still outstanding? Mandy Fields: All right, Steve. So I'll take that first question. On the timing over the next 3 quarters, we really haven't broken that down by quarter other than to say, like I just mentioned to Andrea that as we look at Q2 through Q4, you could see that marketing range outside of that 23% to 25%, given the underspend that we had in Q1. And so that's how I would think about that. I'm going to let Tarang answer the second question on the yield. But on the cost inflation outlook, from an input cost standpoint, we really haven't seen anything come our way from our suppliers. And the one thing that we have seen are higher freight costs. So that's already baked into our outlook. And so from that perspective, I think we've got it pretty well managed in our current fiscal outlook. Tarang Amin: Yes. And Steve, in your question in terms of where we see the benefit of the marketing, I would say we see both. We see both the short-term impact as well as the longer-term impact. I talked about the longer-term impact in terms of building awareness and bringing more consumers in the franchise. Given the strong ROIs we have on our marketing, we would also expect an impact this year. If there's one thing you take away from this call today, I want you to take away the confidence we have in our business. The confidence as expressed by a very strong raise in terms of our fiscal year outlook, the confidence we have in the focused actions on e.l.f. as well as the momentum we continue to see on Naturium and rhode. And so this investment is really behind that confidence in terms of what we know we can get out of marketing, not only this year, but for the years to come in terms of the long-term build of these brands where we see tremendous white space. Operator: And our next question will come from Peter Grom with UBS. Peter Grom: So maybe just starting on the stronger organic sales outlook. And I know you mentioned that you expect all brands to grow through the balance of the year. But I was kind of curious what drove the confidence to increase the outlook for organic sales at this point in the year? And maybe specifically, is it a function of more optimism around rhode as it goes into organic in the back half of the year? Or is it across the base business? And I guess related to that, is there any way to quantify or put guardrails around what you were expecting from the haircare launch in this organic sales outlook? Mandy Fields: Yes. So thanks for the question, Peter. The stronger organic outlook, as we talked on the call, really driven by the improved trends that we're seeing on e.l.f. and the confidence that we have in the momentum we're seeing behind rhode and Naturium. It's really across our portfolio. And [indiscernible] that organic sales growth, balance of the year, the outlook is 10% to 12% growth, which is very strong. And we feel great about where our brands are trending. Tarang just hit on a couple of things with the fall innovation being better than our expectations and things like that. We still have the EU launch with rhode coming up next month that we're excited about. So a lot of things ahead for e.l.f. Beauty. And look, we're taking it a quarter at a time. I agree with you. It's a strong raise first quarter out, but we've got a couple more quarters ahead of us, and we're feeling great about where we are. Operator: And our next question will come from Filippo Falorni with Citi. Filippo Falorni: I wanted to ask on rhode and the expansion into Sephora Europe, which is upcoming. Can you give us a sense of how much of the pipeline you're expecting in fiscal Q2? And then just any expectation on how the brand can do in Europe relative to the U.S. when you look on a per-door basis, like any rough order of idea how you're thinking about that expansion? And then, Tarang, like a follow-up on just the pricing. You mentioned in a couple of weeks, we are going to see some of the SKUs that are going to go back to the prior pricing. Any expectation on elasticities there as you kind of bring back prices back to the prior level? What are you guys thinking about that? Tarang Amin: Thanks, Filippo. So first of all, on rhode, I think you've probably gotten our bullishness on rhode through this call. We're extremely excited about the launch coming up in Sephora Europe across 19 countries. We haven't quantified the pipeline, but most of that pipeline, all that pipeline is going to go out in Q2. So it's one of the reasons why we said Q2 is going to be another particularly strong quarter given the pipeline that we have for rhode going out. And we're learning from each of our experiences. I mean the rhode so massively outperformed everyone's expectations on our launches with Sephora in the U.S., Canada, U.K. as well as with Mecca in Australia and New Zealand that we're taking that into our planning considerations in terms of making sure we're taking even a stronger stance on the pipeline that we have. And a lot of that's based on many of Sephora's best doors are actually outside the U.S. Many of them are in Europe. If we take a look, I think out of their top 10 doors -- top 10, a number of them are in Europe. So we feel really good about the doors that we're going into as we go through. The other thing that gives us confidence is if you take a look at Hailey's followers, the rhode's followers, I think over 70% of them are outside the U.S. So we've been hearing plenty of signals of pent-up demand from a consumer standpoint and particular excitement from Sephora in terms of Sephora would love to have this brand in every one of their doors globally, but we're going to sequence it one step at a time. And then in terms of price elasticity, we feel good once the other items go back to the original pricing. As Mandy said, we did see some unit improvement in those items, but it didn't justify relative to the level of price reduction. So we believe this plan of the 10% that will drive strong unit momentum will be in the best of both worlds where we can have both dollar as well as unit growth post this pricing action, both the things that are coming back up as well as the things that we're going to permanently keep down, again, reinforcing our overall value proposition, but also doing so in a way that drives stronger gross profit over time. Operator: And this will conclude our question-and-answer session. I'd like to turn the conference back over to Tarang Amin for any closing remarks. Tarang Amin: Well, thanks for joining us today. I'm so proud of our passionate team of owners operating in a high-performance team culture, who are showing what it means to be a different kind of beauty company by building brands that disrupt norms, shape culture and connect communities through positivity, inclusivity and accessibility. The consistency of our industry-leading results gives me great confidence that for us, anything is e.l.f.ing possible. We look forward to seeing some of you at our upcoming investor conferences and events over the next few weeks and to speaking with you again when we discuss our second quarter fiscal '27 results in November. Thank you and be well. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in e.l.f. Beauty, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and e.l.f. Beauty wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends e.l.f. Beauty. The Motley Fool has a disclosure policy. e.l.f. Beauty (ELF) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

Interested in e.l.f. Beauty? Here are five stocks we like better. Strong first-quarter performance: e.l.f. Beauty’s fiscal 2027 Q1 sales rose 36% for its 30th consecutive quarter of growth, driven by Rhode and international markets. Adjusted EBITDA nearly doubled to $168 million, while gross margin reached 83%, aided significantly by approximately $50 million in tariff refunds. Full-year outlook raised: The company now expects fiscal 2027 sales growth of 18% to 20%, adjusted EBITDA of $401 million to $407 million, and adjusted EPS of $3.50 to $3.55. Rhode is expected to contribute about 13 percentage points of annual sales growth before its acquisition is fully annualized. Expansion and reinvestment plans: e.l.f. will reinvest tariff refunds in selective price reductions and increased marketing, while expanding e.l.f. Hair, e.l.f. Skin, Naturium and Rhode across new retailers and international markets. Rhode’s European Sephora launch is scheduled for September, supporting projected second-quarter sales growth in the mid-30% range. Overextended, e.l.f. Beauty Is Primed to Rebound in Back Half e.l.f. Beauty (NYSE:ELF) reported first-quarter fiscal 2027 net sales growth of 36%, marking its 30th consecutive quarter of sales growth, as strong performance from Rhode and international markets helped offset a decline in organic unit volumes. Chairman and Chief Executive Officer Tarang Amin said the company’s momentum prompted it to raise its full-year outlook. The company now expects fiscal 2027 net sales to increase 18% to 20%, compared with its previous expectation of 12% to 14% growth. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Senior Vice President and Chief Financial Officer Mandy Fields said Rhode contributed approximately $160 million of net sales during the quarter, outperforming the company’s expectations. Organic net sales excluding Rhode were largely in line with the company’s prior outlook for a high-single-digit decline, reflecting comparisons against a busy prior-year shipping period and the prior-year launch of e.l.f.’s Glow Reviver Melting Lip Balm. U.S. net sales rose 29%, while international net sales increased 61%. Pricing and product mix added about 39 percentage points to total sales growth, while unit volumes declined approximately 3 percentage points. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 5 Hot Buys Ready to Spring Higher in March Gross margin rose about 1,400 basis points year over year to 83%. Fields said roughly 1,050 basis points of the improvement came from approximately $50 million in IEEPA tariff refunds received during the quarter and recorded in cost of goods sold. Excluding the refunds, gross margin still increased about 350 basis points, helped by pricing and lower tariff rates compared with the prior year. Adjusted EBITDA increased 93% to $168 million, while adjusted net income rose to $105 million, or $1.75 per diluted share, from $51 million, or $0.89 per share, a year earlier. The tariff refunds added approximately $40 million to adjusted net income, or about $0.68 per diluted share, Fields said. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company ended the quarter with $344 million in cash, up from $170 million a year earlier. During the quarter, it repurchased about $50 million of its common stock. Fields said e.l.f. Beauty also expects to use some cash later in the fiscal year to make the first Rhode earn-out payment, given the brand’s performance. Amin said the company expanded a price-discovery test that began in May from one product to most e.l.f. brand stock-keeping units. The effort followed the company’s $1 price increase last August, which was implemented in response to tariffs and inflationary pressures. The company concluded that about 90% of e.l.f. products were appropriately priced and will return to their pre-test price levels in the coming weeks. However, it identified about 10% of SKUs where lower prices generated enough unit growth to support maintaining the reductions. “We actually believe we can grow gross profit dollars over time through that pricing action,” Amin said of the products retaining lower prices. The company plans to reinvest the $50 million in tariff refunds during the remainder of the year, primarily through selected price reductions and higher marketing spending. Fields said marketing and digital investment was 22% of sales in the first quarter, below expectations because of spending timing. For the full year, marketing and digital spending is expected to be at the high end of the company’s prior 23% to 25% range, and could run above that level from the second through fourth quarters. Amin highlighted expansion across the company’s portfolio. e.l.f. Cosmetics remains the top-ranked brand in unit share and second in dollar share, while e.l.f. Skin has advanced to the No. 11 mass skincare brand in the U.S., according to the company. The company plans to launch e.l.f. Skin at Dollar General this fall. e.l.f. also entered haircare in June with a six-product e.l.f. Hair assortment priced at $10 or less. The line debuted through TikTok Shop and has launched exclusively at Target nationwide. Amin said nearly half of e.l.f. Hair purchasers are new to the e.l.f. brand. The products are being sold in Target’s haircare aisle, and the Target exclusivity will continue through the current fiscal year. e.l.f. plans to expand its Boots presence in the U.K. this fall. The company expects to launch e.l.f. with Sephora in Brazil, its first entry into the world’s third-largest cosmetics market. Naturium is scheduled to launch with Sephora in Canada and Mexico this fall after reaching the No. 1 body ranking with Sephora in Australia and New Zealand, according to the company. Rhode is slated to launch with Sephora across 19 European countries in September. Amin said Rhode’s latest summer product launch generated $27 million in direct-to-consumer sales in one day and added 90,000 new consumers, while more than 70% of sales came from existing customers. Rhode remains in fewer than 20% of Sephora stores globally, he said. For fiscal 2027, e.l.f. Beauty now forecasts adjusted EBITDA of $401 million to $407 million, compared with its previous outlook of $379 million to $385 million. It expects adjusted net income of $212 million to $215 million and adjusted earnings per diluted share of $3.50 to $3.55, up from prior projections of $198 million to $201 million and $3.27 to $3.32, respectively. The company expects Rhode to contribute about 13 percentage points of fiscal-year sales growth before the acquisition is annualized in August, up from its prior expectation of nine percentage points. Organic net sales growth is now projected at 6% to 7% for the year, with 10% to 12% organic growth expected over the balance of the fiscal year. For the second quarter, the company expects total sales growth in the mid-30% range, supported by improving e.l.f. trends and pipeline shipments related to Rhode’s European Sephora launch. Fields said higher freight costs are included in the company’s current outlook, while it has not experienced new supplier-driven input-cost increases. e.l.f. Beauty (NYSE: ELF) is an American cosmetics company known for offering an extensive range of affordable, trend-driven makeup and skincare products. The company's portfolio spans foundations, lipsticks, mascaras, brushes, serums, masks and other beauty essentials, all positioned at accessible price points. e.l.f. Beauty maintains a direct-to-consumer platform through its e-commerce site and engages in widespread retail partnerships with major chains such as Target, Walmart, Ulta Beauty and Amazon. Founded in 2004 and headquartered in Oakland, California, e.l.f. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "e.l.f. Beauty Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

e.l.f. Beauty, Inc. ELF began fiscal 2027 on a strong note, supported by exceptional demand for Rhode, robust international growth and continued momentum across its diversified beauty portfolio. The company also raised its full-year sales and earnings outlook.ELF posted adjusted earnings of $1.75 per share, which jumped significantly from the year-ago period’s earnings of 89 cents and also beat the Zacks Consensus Estimate of 71 cents. e.l.f. Beauty price-consensus-eps-surprise-chart | e.l.f. Beauty Quote Net sales rose 36% to $479.4 million, surpassing the consensus estimate of $427 million. The Zacks Rank #2 (Buy) company registered its 30th consecutive quarter of net sales growth, representing more than seven continuous years of expansion. Sales benefited from strength across retailer and e-commerce channels in the United States and international markets.U.S. net sales increased 29%, while international net sales advanced 61%. Pricing and product mix contributed approximately 39 percentage points to growth. Unit volumes reduced growth by roughly three percentage points. Rhode contributed approximately $160 million in first-quarter net sales, exceeding management’s expectations. The brand benefited from solid retail demand and a record-breaking summer innovation launch through rhodeskin.com.The summer launch generated $27 million in direct-to-consumer sales in a single day. More than 70% of sales came from existing consumers, while the event attracted 90,000 new customers. Rhode is scheduled to launch with Sephora across 19 European countries in September. Gross margin expanded approximately 1,400 basis points year over year to 83%. The increase included a benefit of nearly 1,050 basis points from approximately $50 million of IEEPA tariff refunds.Excluding the refund benefit, gross margin still improved about 350 basis points, driven by pricing and lower year-over-year tariff rates. Management plans to reinvest the refunds during the remainder of fiscal 2027, primarily through selected price reductions and increased marketing spending.Adjusted selling, general and administrative expenses surged to $260.7 million from $177.3 million. Adjusted SG&A represented 54% of net sales compared with 50% in the prior-year quarter, reflecting investments in personnel, infrastructure, merchandising and distribution.Marketing and digital spending accounted for 22% of net sales, unchanged year over year but below management’s expectations due to the timing of expenditures. Adjusted EBITDA surged 93% to $168.2 million and represented 35% of sales. Excluding tariff refunds, adjusted EBITDA grew 36%. Cash and cash equivalents totaled $344.2 million at quarter-end, and total debt was $834.2 million.Net cash provided by operating activities increased to $111.7 million during the first quarter.The company repurchased approximately $50 million of common stock and repaid $7.5 million of long-term debt during the quarter. Management now expects fiscal 2027 net sales of $1,938-$1,968 million, implying growth of 18-20%. The prior outlook called for sales of $1,835-$1,865 million and growth of 12-14%.Adjusted EBITDA is projected at $401-$407 million, while adjusted net income is expected to be $212-$215 million. Adjusted earnings are forecast at $3.50-$3.55 per share, up from the previous guidance of $3.27-$3.32. For the second quarter, management expects total net sales growth in the mid-30% range.Shares of ELF have rallied 39.8% over the past three months compared with the industry’s growth of 6.7%. Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks hereThe Zacks Consensus Estimate for Darling’s current fiscal year sales calls for 13.2% growth from the prior-year levels. The consensus estimate for current fiscal-year earnings per share (EPS) stands at $5.34, which implies substantial growth from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.The Estee Lauder Companies EL, one of the world's leading manufacturers and marketers of skin care, makeup, fragrance and hair care products, currently carries a Zacks Rank #2. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.The Zacks Consensus Estimate for The Estee Lauder Companies’ current fiscal-year sales and earnings calls for growth of 4.4% and 59.6%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report e.l.f. Beauty (ELF) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

e.l.f. Beauty, Inc. ELF raised its fiscal 2027 outlook after first-quarter sales grew 36%, driven by exceptional rhode demand and improving portfolio trends. Adjusted earnings of $1.75 per share beat the Zacks Consensus Estimate of $0.71. Revenues of $479.4 million topped the consensus estimate of $426.7 million. Management focused on turning the quarter’s strength into durable organic growth. e.l.f. Beauty price-consensus-eps-surprise-chart | e.l.f. Beauty Quote Senior vice president and CFO Mandy Fields raised expected fiscal 2027 net sales growth to 18% to 20% from 12% to 14%, implying revenues of $1.938 billion to $1.968 billion. Adjusted EBITDA guidance increased to $401 million-$407 million. Adjusted earnings guidance rose to $3.50-$3.55 per share. Management now expects organic net sales growth of 6% to 7% for the year and 10% to 12% over the remaining three quarters. Second-quarter sales growth is projected in the mid-30% range. Chairman and CEO Tarang Amin said that a broad price-discovery test confirmed that roughly 90% of e.l.f. products were appropriately priced. About 10% of stock-keeping units will remain at lower prices because the unit response was strong enough to support higher sales and gross profit dollars. The other products will return to their pretest prices. A Raymond James analyst asked about elasticity. Amin said that recent data showed improvement in dollars and units, while skin tint unit gains reached 60% to 80% after its price fell to $14 from $18. Rhode contributed approximately $160 million of first-quarter sales, exceeding management’s expectations. Its latest summer launch generated $27 million of direct-to-consumer sales in one day, with more than 70% from existing customers. Amin said that rhode could become the fastest beauty brand to reach $1 billion in net sales. The brand will enter Sephora stores across 19 European countries in September. Responding to a Citigroup analyst, Amin said that all related pipeline shipments will occur in the second quarter. Rhode remains in less than 20% of Sephora stores globally, leaving considerable distribution room. Management is expanding beyond core cosmetics. e.l.f. Hair launched with six products priced at $10 or less and will remain exclusive to Target through fiscal 2027. Amin said that nearly half of early e.l.f. Hair buyers were new to the brand. He compared the rollout with e.l.f. SKIN, which is set to expand into Dollar General. Internationally, e.l.f. Cosmetics will enter Sephora Brazil and expand in Boots in the United Kingdom. Naturium will launch with Sephora in Canada and Mexico, while trends in the United Kingdom and Germany have improved. The company received about $50 million in tariff refunds, lifting first-quarter gross margin by roughly 1,050 basis points. Gross margin reached 83%, up about 1,400 basis points year over year. Fields said that the full refund will be reinvested from the second through fourth quarters, mainly through marketing and targeted price reductions. Full-year marketing and digital spending should approach the high end of the prior 23% to 25% range. Excluding the refunds, adjusted EBITDA still grew 36%. Management expects the reinvestment to have no net full-year adjusted EBITDA effect and forecasts mid-teens margins over the remaining quarters. Fields tied the stronger organic outlook to improving e.l.f. trends and continued momentum at rhode and Naturium. Amin emphasized innovation, marketing and international distribution. The company expects roughly 60% of production to come from outside China by fiscal year-end. Higher freight costs are included in guidance, while management said supplier input inflation remains manageable. The priority is to strengthen awareness, unit growth and global reach while investing in technology, infrastructure and working capital. Currently, ELF carries a Zacks Rank #2 (Buy), indicating a favorable earnings-estimate revision profile. Its Momentum Score of B is constructive, while the Growth Score of C is neutral and the Value Score of F is weak. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The VGM Score of D indicates a less favorable combined value, growth and momentum profile. The Zacks Rank can change as analysts revise estimates after the reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report e.l.f. Beauty (ELF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research