After a strong Q2, e.l.f. Beauty raises sales and earnings forecast

For the second quarter, e.l.f. Beauty’s net sales increased 40 percent to 301.1 million dollars, driven by strength in both retailer and e-commerce channels, in the US and internationally. The company’s first half net sales increased 45 percent to 625.6 million dollars.

The company’s updated outlook for fiscal 2025 reflects an expected 28 to 30 percent year-over-year increase in net sales, as compared to an expected 25 to 27 percent increase previously.

“Q2 marked another quarter of consistent, category-leading growth. In Q2, we delivered 40 percent net sales growth, fueled by 195 basis points of market share gains in the US and 91 percent net sales growth internationally,” said Tarang Amin, e.l.f. Beauty’s chairman and chief executive officer.

Gross margin for the second quarter increased approximately 40 basis points to 71 percent, net income was 19 million dollars on a GAAP basis and adjusted net income was 45 million dollars. Diluted earnings per share were 33 cents on a GAAP basis, while adjusted diluted earnings per share were 77 cents. Adjusted EBITDA was 69.3 million dollars or 23 percent of net sales.

First half gross margin increased approximately 60 basis points to 71 percent, net income was 66.6 million dollars on a GAAP basis and adjusted net income was 109.3 million dollars. Diluted earnings per share were 1.14 dollars on a GAAP basis and adjusted diluted earnings per share were 1.87 dollars. The company’s adjusted EBITDA was 146.8 million dollars or 23 percent of net sales, up 9 percent year over year.

Raising its outlook for the year ahead, the company forecasts net sales to be in the range of 1,315 to 1,335 million dollars, adjusted net income to range between 205 to 208 million dollars and adjusted diluted earnings per share to be between 3.47 to 3.53 dollars.