Elf Beauty Strengthens Premium Skincare Presence with Rhode Acquisition, Reports 9% Q1 Sales Growth

Elf Beauty, the parent company of Elf Cosmetics, Naturium, and Rhode, reported a 9% year-over-year increase in net sales for the first quarter ending June 30, 2025, reaching $353.7 million (£264.5 million). This growth was primarily driven by strong performance across both domestic and international retail and e-commerce channels.

CEO Tarang Amin attributed the uptick to the successful launch of a series of new products, which contributed to overall revenue expansion. Additionally, the skincare brand Naturium continued to demonstrate robust growth. Amin emphasized in the company’s trading update this week that “our strong performance extends the streak of market-leading growth we have sustained over the past 26 consecutive quarters.” He highlighted that the combination of Elf Beauty’s value proposition, innovative approach, and disruptive marketing engine continues to drive performance, underscoring the company’s commitment to making beauty accessible to all and its optimism about addressing a substantial market opportunity.

Despite the solid top-line growth, gross margin declined by 215 basis points to 69%, primarily due to tariff impacts, partially offset by favorable foreign exchange movements and product mix. Net income for the quarter was $33.3 million (£24.9 million). Looking ahead, Elf Beauty has not provided full-year guidance for fiscal 2026 due to potential tariff uncertainties, although the company anticipates first-half net sales growth to exceed the 9% achieved in Q1.

During the quarter, Elf Beauty finalized the acquisition of Hailey Bieber’s Rhode brand on August 5. Founded in 2022, Rhode quickly became a must-have beauty brand, propelled by Bieber’s star influence and her signature “Donut Glow” aesthetic. According to the company, Rhode’s sales reached $212 million (£165 million) over the 12 months ending March 31, 2024.

For Elf Beauty, this acquisition follows its 2023 purchase of Naturium for $333 million (£260 million) and its collaboration with musician Alicia Keys to launch Keys Soulcare, further solidifying the group’s position in the premium skincare sector. Under the terms of the agreement, Bieber will serve as Chief Creative Officer and Head of Innovation, in addition to acting as a strategic advisor to the Elf Beauty Group.