e.l.f. Beauty (ELF) Just Logged Its 30th Growth Quarter. Can The Streak Hold?

e.l.f. Beauty reported its first-quarter fiscal 2027 results on August 5, revealing a 36% year-over-year increase in net sales, marking the company's 30th consecutive quarter of net sales growth. Only 6 of 516 public consumer companies tracked match this pace, with e.l.f. raising its full-year outlook to 18% to 20% net sales growth.

Among roughly 1,800 cosmetics and skin care brands, e.l.f. now owns four with sales exceeding $200 million, with Rhode being the standout. International sales grew 61%, boosted by expansion into Boots in the UK, Sephora in Brazil, and Naturium in Canada and Mexico. Despite a decline in organic net sales and a drop in unit volumes, overall growth was still positive due to pricing and mix adjustments.

Profitability improved, with a significant jump in gross margin to 83%, though adjusted EBITDA also rose to $168 million, excluding a $50 million IEEPA tariff refund. The company plans to reinvest the refund through lower prices and marketing, expecting a net zero impact on full-year EBITDA. Hedge fund ownership increased slightly, but short sellers remain skeptical.

While e.l.f. Beauty's growth streak is genuine, the company's core brand relied on one-time tariff refunds and aggressive pricing actions rather than organic demand. The bulls believe Rhode's expansion and the haircare push will continue to attract new customers, but overall growth will depend on maintaining this momentum. Compared to other AI stocks, e.l.f. Beauty offers potential but comes with higher risks.