Yesterday, E.l.f Beauty released its financial report of Q2 of FY2025. E.l.f. Beauty continues to defy the wider beauty industry slowdown, achieving its 23rd consecutive quarter of growth and raising its full-year forecast. For the fiscal 2025 second quarter, ending September 30, the Oakland-based beauty company saw a 40% increase in net sales, reaching $301.1 million, up from $215.5 million a year prior. This performance beat analysts’ expectations of $289 million and drove a 20% jump in the company’s stock in after-hours trading, despite a previous 3% dip to $104.16.
Chairman and CEO Tarang Amin attributed E.l.f.’s success to its strong value proposition, innovative product lineup, and disruptive marketing strategies, stating, “We’re the only cosmetics company that’s grown market share for 23 straight quarters.” Reflecting this momentum, E.l.f. raised its annual sales outlook to between $1.31 billion and $1.35 billion, up from its prior estimate of $1.28 billion to $1.3 billion.
While net income dipped to $19 million from $33.2 million, adjusted diluted earnings per share were 77 cents, exceeding Wall Street’s forecast of 43 cents. The company’s expanded retail presence also supported its growth: E.l.f. gained additional shelf space in Target, where it now commands over 20% of the beauty category, as well as in Walgreens and Walmart.
On the international front, E.l.f. launched in Sephora Mexico and expanded into Germany through Rossmann’s 1,200 stores, marking its largest overseas rollout to date. Amin shared that these ventures have exceeded expectations, with strong demand outside the U.S. Additionally, Naturium, a recent E.l.f. acquisition, completed a successful nationwide rollout in Ulta Beauty, further boosting the brand’s presence in the skincare market.
