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E.l.f. Beauty’s quarterly sales jumped 51% to $520.8 million as growth across its brands and sales channels prompted another increase in its full-year outlook.
Adjusted earnings reached $1.21 a share in the fiscal second quarter ended September 30, compared with the 60-cent analyst estimate in an LSEG survey cited by CNBC. The company’s results release puts full-year net sales guidance at $2.003 billion to $2.029 billion, up from $1.938 billion to $1.968 billion.
For beauty retailers, suppliers and investors, the results show continued demand in both stores and online. They do not establish that all cosmetics companies are seeing the same growth, or that consumers are spending more across every retail category.
Sales strength reaches beyond the United States
The company attributed its growth to retailer and e-commerce channels in the United States and internationally. CEO Tarang Amin said each brand contributed strong growth, marking the company’s 31st consecutive quarter of higher net sales.
International business grew 165%, CNBC’s interview with Amin detailed. He said only about a quarter of the company’s business is currently outside the United States, leaving room for further expansion.
GAAP net income was $30.0 million, or 50 cents per diluted share. Adjusted net income was $72.7 million, excluding specified items. Adjusted EBITDA rose 86% to $123.4 million.
Higher forecasts, tariff benefits and price investments
E.l.f. now expects fiscal 2027 adjusted earnings of $3.82 to $3.86 a share, up from $3.50 to $3.55. Its adjusted EBITDA outlook increased to $421 million to $427 million from $401 million to $407 million.
Gross margin reached 71%, a gain of about 160 basis points, including roughly 30 basis points from incremental tariff refunds. Lower year-over-year tariffs and product mix also helped, partly offset by price investments.
Amin told CNBC the company had lowered prices by $1 on about 10% of its units as a result of tariff benefits. He described the company’s holiday outlook as bullish; that is management’s expectation rather than a completed holiday-season result.
At September 30, e.l.f. held $350.8 million in cash and cash equivalents and had $826.7 million in total debt. The next test is whether the momentum carries through the rest of the fiscal year while supporting the higher profit targets.
JBizNews Desk | Oakland
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