The news: E.l.f. Beauty cites strong demand across the board as customers respond to its affordable pricing, product innovation, and brand portfolio. Net sales rose 51% in fiscal Q2 2027, with growth in both retail and ecommerce in the US and abroad.

Q2 marked e.l.f.’s 31st consecutive quarter of net sales growth, making it one of only six public consumer companies to achieve that milestone while boosting net sales by at least 20% each quarter, CEO Tarang Amin said on the company’s earnings call.

How we got here: E.l.f.’s ability to maintain its growth streak is rooted in its affordable positioning, steady innovation, and playful, tongue-in-cheek marketing. The company has also made two savvy acquisitions—rhode and Naturium—that have enabled it to diversify its product portfolio and price points.

Rhode has been a big success story. Its late-September debut at Sephora Europe was the biggest in the retailer’s history, topping the previous record rhode set when it launched in Sephora’s North America stores. New releases and limited-edition collections are also helping to drive sales and, more importantly, retain consumers: The brand has one of the highest repeat purchase rates in beauty, Amin said.

E.l.f. is also benefiting from strong ecommerce growth, particularly on Amazon and TikTok—two of the fastest-growing channels for online beauty sales. E.l.f. was both the most-searched and top cosmetics brand on Amazon US, as well as the No. 2 cosmetics brand on TikTok Shop. Around one-third of the company’s sales now comes via digital channels.

Implications for retail: Part of the reason for e.l.f.’s sustained success, beyond its affordability, is its broad distribution. Its availability on Amazon enables it to stay relevant to the roughly one-third of US online beauty shoppers who prefer to make purchases on third-party marketplaces, according to a Ryder survey. But it also has a large physical presence at mass merchants and drugstores—the most popular channels for in-store beauty buyers, according to our most recent Pulse of the Consumer: Personal Care and Beauty survey—as well as at specialty retailers, thanks to rhode. This channel-agnostic strategy allows e.l.f. to reach a broader audience as well as stay discoverable amid broader shifts in beauty spending.