E.l.f. Beauty has raised its full-year guidance after reporting a 51% rise in second-quarter net sales, as the cosmetics company exceeded analysts’ expectations for both revenue and adjusted earnings.
The US-based company recorded adjusted earnings per share of $1.21 for the quarter ended September 30, compared with the 60 cents expected by analysts. Revenue reached $520.8 million, ahead of the $470.3 million forecast.
It was E.l.f. Beauty’s 31st consecutive quarter of net sales growth, with the company citing strong performances across its portfolio and in both retail and e-commerce in the US and international markets.
Chief executive Tarang Amin said: “The thing I’m most pleased about is we saw strength across our entire portfolio. Every one of our brands contributed strong growth this quarter.”
E.l.f. Beauty raises full-year forecasts
The company now expects full-year net sales of between $2 billion and $2.03 billion, up from its previous forecast of $1.94 billion to $1.97 billion.
Its projection for adjusted earnings before interest, tax, depreciation and amortisation has been increased to between $421 million and $427 million, compared with the earlier range of $401 million to $407 million.
E.l.f. Beauty also raised its adjusted earnings-per-share forecast to between $3.82 and $3.86, from $3.50 to $3.55. Its expected net income range increased to $231 million to $233 million, compared with the previous estimate of $212 million to $215 million.
The company had already increased its guidance in the previous quarter after exceeding its expectations.
For the latest quarter, reported net income rose to $30.03 million, or 50 cents per share, from about $3 million, or five cents per share, a year earlier.
International sales increased by 165%, although Amin said overseas operations still account for only 25% of the company’s business. He described the area as a “tremendous opportunity” for further growth.
Amin also said E.l.f. Beauty was the most-searched brand on TikTok Shop and the second-largest cosmetics brand on the platform. The company reported strong results from Rhode, the skincare brand it acquired last year.
Gross margin increased by 1.6% during the quarter, including a 0.3% benefit from tariff refunds. The company expects to receive about $55 million in refunds over the full year and said it had lowered the price of about 10% of its units by $1 as a result.
“We’re seeing great unit momentum based on that,” Amin said.
The chief executive said E.l.f. Beauty was “very bullish” on the holiday season and expected strong sales through the end of the year.
