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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