E.l.f. Beauty delivered stronger-than-expected financial results in its second fiscal quarter ended September 30, with net sales climbing 51% to $520.8 million. The beauty company achieved its 31st consecutive quarter of net sales growth, driven by robust performance across its entire brand portfolio in both retail and e-commerce channels across domestic and international markets. Net income for the period reached $30.03 million, or 50 cents per share, compared with approximately $3 million, or 5 cents per share, in the year-earlier period.
Following the strong quarterly performance, E.l.f. raised its full fiscal-year guidance across multiple metrics. The company now projects net sales between $2 billion and $2.03 billion, up from its previous range of $1.94 billion to $1.97 billion. Adjusted EBITDA guidance was increased to a range of $421 million to $427 million from the earlier projection of $401 million to $407 million. The company also raised its adjusted earnings per share forecast to between $3.82 and $3.86, exceeding prior guidance of $3.50 to $3.55, and increased its net income guidance to a range of $231 million to $233 million from $212 million to $215 million.
International operations provided a notable growth driver, with business outside the U.S. expanding 165% during the quarter. Chief Executive Officer Tarang Amin noted that international markets currently represent only 25% of the company’s total business, indicating substantial opportunity for expansion. The company also highlighted strong performance from Rhode, a skincare brand acquired the previous year, and noted that E.l.f. ranks as the most-searched brand on TikTok Shop and the second-ranked cosmetics brand on that platform.
Gross margin increased 1.6% during the quarter, including a 0.3% benefit from tariff refunds. The company expects to receive approximately $55 million in tariff refunds for the full year and has used a portion of these benefits to reduce prices on roughly 10% of its product units by $1, which management indicated is generating strong unit volume momentum. Management expressed bullish sentiment regarding the approaching holiday season, anticipating sustained high sales momentum through the end of the year.
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