ELF
Still speeding, but the gas pedal gets trickier
e.l.f. Beauty is basically telling investors: "Don’t worry, we’re not done yet." The company is targeting double-digit sales growth for fiscal 2027, which is a fancy way of saying it still thinks the party can keep going. That’s impressive in beauty, where plenty of brands eventually hit the wall and start acting like they’ve suddenly discovered moderation.
The Rhode question
The catch? The next stretch depends on Rhode becoming more than a shiny new acquisition story. If Rhode scales well, it can add real fuel. If not, it risks becoming one of those expensive “strategic” moves that looks great in the slide deck and a lot less cute in the margins.
The core brand has to pull its weight too
There’s also the less glamorous part of the equation: e.l.f.’s original brand still needs to keep delivering. Growth stories have a nasty habit of getting weird when the legacy business starts slowing while the new thing is still finding its footing. Investors should watch whether the company can keep broadening its audience without turning every launch into a one-hit wonder.
Big picture: e.l.f. still has a growth narrative that’s louder than most, but at this point the market cares less about the slogan and more about whether the numbers keep showing up.