According to Cosmetics Business, Hailey Bieber's Rhode launched into Sephora across 19 European countries this quarter and marked what CEO Tarang Amin calls Sephora's largest launch ever — exceeding the brand's own record-setting North America and UK debuts.

Cosmetics Business quotes Amin saying the brand achieved the number one beauty ranking in both North America and the UK, and that this quarter's European expansion "broke our own records." The parent company e.l.f.

Beauty saw net sales jump 51% to US$520.8m in the second quarter, which Cosmetics Business attributes in large part to the Rhode rollout.

Cosmetics Business notes Rhode is currently only in 40% of Sephora stores globally, yet Amin told investors the brand already has "the strongest repeat rates" Sephora sees — and claims "there is not a market in the world that does not want Rhode right now."

For beauty watchers, that mix of scarcity, waitlists and repeat purchase is what made the European debut an outlier rather than a routine retail rollout.

Cosmetics Business reports e.l.f. Beauty's US net sales grew 25% in the quarter while international net sales grew 165%, prompting the company to raise its FY2027 sales outlook to 22–24% growth from 18–20%.

Simply Wall St adds that management raised full-year and multi-year targets for net sales, adjusted EBITDA, net income and EPS, alongside a fair value gain tied to Rhode.

The DTC business kept growing too: Cosmetics Business says Rhode's direct-to-consumer momentum continued despite retail expansion, fuelled by exclusive drops such as the Alexandra Leclerc collaboration, which drew a 200,000-person waitlist and sold most items out within an hour.

There is still runway: Cosmetics Business notes Rhode is only in 40% of Sephora's global doors, and that roughly 65% of e.l.f. Cosmetics' and 75% of Rhode's social following sits outside the US — what Amin calls one of the company's biggest opportunities.

Simply Wall St cautions, however, that the quarter does not resolve concerns about high SG&A at 54% of net sales and marketing spend guided at 23–25%, which could limit operating leverage.