E.l.f. Beauty delivered stronger-than-anticipated results for its second fiscal quarter ended September 30, posting a 51% increase in net sales to $520.8 million. The beauty company achieved its 31st consecutive quarter of net sales growth, with strength distributed across its entire portfolio of brands. Performance was bolstered by gains in both retail and e-commerce channels across domestic and international markets.
Net income for the quarter reached $30.03 million, or 50 cents per share, compared with approximately $3 million, or 5 cents per share, in the year-ago period. Chief Executive Officer Tarang Amin highlighted the performance of the company’s brands, noting that E.l.f. ranked as the most-searched brand on TikTok Shop and the number two cosmetics brand on that platform. The company’s Rhode skincare brand, acquired the previous year, also contributed to the quarterly results.
Following the better-than-expected performance, E.l.f. raised its full-year guidance across multiple metrics. The company now projects net sales between $2 billion and $2.03 billion, up from a previous range of $1.94 billion to $1.97 billion. Adjusted EBITDA guidance was increased to $421 million to $427 million from $401 million to $407 million, while adjusted earnings per share guidance rose to $3.82 to $3.86 from $3.50 to $3.55. Net income guidance was also elevated to a range of $231 million to $233 million from $212 million to $215 million.
International operations showed particularly robust expansion, with business up 165% during the quarter. Currently, approximately 25% of the company’s revenue derives from outside the United States, presenting what management characterized as significant runway for additional growth. Additionally, E.l.f. benefited from tariff refunds totaling approximately $55 million for the full year, with a portion flowing through the second quarter. The company deployed these savings to reduce prices on roughly 10% of its product units by $1, which management said generated positive unit momentum.
Management expressed confidence in the upcoming holiday season, signaling expectations for sustained sales momentum through year-end.
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