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Key Takeaways
- E.l.f. Beauty posted stronger-than-expected earnings as it added market share in the U.S. and boosted international sales.
- The cosmetics retailer also raised its full-year profit and sales outlook.
- Shares surged Thursday following the release, though even with Thursday’s gains, they remained lower for the year.
E.l.f. Beauty (ELF) shares soared Thursday after the cosmetics retailer blew past earnings estimates and raised its outlook on booming sales.
The company reported second-quarter fiscal 2025 earnings per share (EPS) of 33 cents, above analysts’ estimates compiled by Visible Alpha. Revenue surged 39.7% year-over-year to $301.1 million, $10 million above forecasts.
E.l.f. Beauty’s gross margin rose approximately 40 basis points (bps) to 71%, in part thanks to cost cutting, favorable exchange rates, and higher prices in its international markets.
CEO Tarang Amin said the jump in sales was driven by a market share gain of 195 bps in the U.S., and 91% net sales growth internationally.
E.l.f. raised its full-year revenue outlook to $1.315 billion to $1.335 billion, compared to $1.280 billion to $1.3 billion previously. It projected adjusted EPS of $3.47 to $3.53, up from $3.36 to $3.51.
E.l.f. shares were up close to 18% in Thursday afternoon trading following the news, though despite Thursday’s gains, they’ve lost over 15% since the start of the year.
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