Rhode's Sephora Europe debut drives E.l.f. Beauty to 51% sales surge

E.l.f. Beauty posted a 51% net sales increase for its fiscal Q2 2027 quarter ending September 30, reaching $520.8 million — and the single largest driver was Rhode's September launch into 19 European markets through Sephora.

"Rhode continues to break records with every launch, including most recently in Sephora Europe, marking the biggest launch in Sephora's history," E.l.f. Beauty CEO Tarang Amin told investors on Wednesday's call.

The 51% figure marks an acceleration. The company reported 35% quarterly sales growth in May and 36% in August. This quarter broke the pattern.

What drove the numbers?

Amin credited the summer's growth to the E.l.f. Beauty portfolio — Naturium, E.l.f. Skin, and new hair-care and fragrance launches. But the decisive factor was Rhode, and specifically Sephora's wholesale order placed ahead of the brand's rollout across 19 European markets in September.

CFO Mandy Fields broke the split down during the call: "U.S. net sales grew 25% in Q2, while international net sales grew 165%."

"Europe was a record launch for Rhode in the European markets. … It's the largest launch the store has ever seen, only second best to our U.S. launch that we had last year, and so we feel great about the [sales] trends we're continuing to see on Rhode," Fields said.

How big is the international runway?

Amin framed the international gap as a core strategic opportunity rather than a weakness. On a trailing 12-month basis, international accounted for approximately 25% of net sales, compared with approximately 70% for the company's legacy peers.

"We believe this gap represents one of our biggest opportunities, and the demand is already there," Amin said.

The demand signals are concrete:

• About 65% of E.l.f. Cosmetics' social following sits outside the U.S.
• About 75% of Rhode's social following is outside the U.S.
• Even after the European launch, Rhode sits in only 40% of Sephora's global doors.

For buyers and retail partners, that last number is the operational headline: more than half of Sephora's global door network remains untapped for the Bieber-founded brand, implying further wholesale orders and shelf resets in subsequent quarters.

What is happening with DTC?

Amin also addressed whether the Sephora expansion cannibalizes Rhode's direct-to-consumer business. His answer: no.

"We're seeing momentum across both retail and DTC," he said. "One of the things I've been really pleased the team's been able to do is have a series of exclusive launches on DTC, which is continuing to propel that business even as we've expanded our retail distribution."

The proof point is the brand's recent collaboration with influencer Alexandra Leclerc. The collection included limited-edition colors sold exclusively through Rhode's DTC channel and drew a 200,000-person waitlist. Once released, most products sold out in under an hour, Amin told investors.

The strategy preserves scarcity-driven demand online while scaling shelf presence offline — a dual-channel model that keeps the DTC engine running without competing directly with Sephora inventory.

What does this change for the trade?

For procurement teams and retail buyers, the quarter signals continued upward pressure on Rhode wholesale volumes, with Sephora door expansion the clearest mechanism. For competitors, the 165% international growth rate at E.l.f. shows what a social-first brand with a 75%-international following can do once distribution catches up to demand.

E.l.f. Beauty will keep pushing Rhode internationally, Amin said, and he sees no ceiling yet: "There isn't a market in the world that doesn't want Rhode right now."

The next data points to watch are the pace of Rhode's rollout into the remaining 60% of Sephora's global doors and whether the 165% international growth rate holds when the Q3 figures report.