elf beauty The company on Wednesday reported a 51% increase in net sales in the second quarter, beating Wall Street expectations.
The beauty company said its net sales have increased for the 31st consecutive quarter, driven by strong performance across its portfolio. The surge in revenue was driven by both retail and e-commerce channels in the U.S. and internationally, the company added.
“What’s most gratifying is that we’re seeing strength across the portfolio,” CEO Taran Amin said in an interview with CNBC. “All brands contributed strong growth in the quarter.”
Amin added that Elf is the most searched brand on TikTok Shop and the second-largest cosmetics brand on the platform. The company also said the skincare brand Lord, which it acquired last year, performed well.
The company raised its full-year outlook after the quarter beat expectations. Net sales are now expected to be in the range of $2.0 billion to $2.03 billion, compared to $1.94 billion to $1.97 billion previously. The company also raised its adjusted EBITDA forecast to a range of $421 million to $427 million, from a range of $401 million to $407 million.
Elf said it now expects adjusted earnings per share of $3.82 to $3.86 for the current period, beating its previous forecast of $3.50 to $3.55 per share. The company also expects net income to range between $231 million and $233 million, up from the previous range of $212 million to $215 million.
The company had already raised its outlook after beating expectations last quarter.
Amin said the company is “very bullish” about the holiday season and expects strong sales through the end of the year.
Here’s how the company performed in its second fiscal quarter compared to Wall Street expectations, based on a survey of analysts by LSEG.
Earnings per share: Adjusted $1.21 vs. expected 60 cents Earnings: $520.8 million vs. $470.3 million
Elf reported net income of $30.03 million, or 50 cents a share, for the year ended Sept. 30, up significantly from about $3 million, or 5 cents a share, in the year-ago period.
Net sales increased 51% to $520.8 million.
Elf also experienced significant growth in its international channels, with business increasing by 165%. Amin told CNBC that only 25% of the company’s business is outside the United States, and there is “tremendous opportunity” to build on its momentum.
The company also announced a 1.6% increase in gross profit for the quarter, including a 0.3% gain from customs duty refunds. Amin previously said the company plans to fully reinvest the funds into pricing and marketing to continue to drive growth.
Elf received the bulk of the refund in the first quarter, but some of the money will flow into the second quarter, with the company expecting to receive a total of about $55 million annually. Amin told CNBC on Wednesday that the company had reduced the price of about 10% of its units by $1, citing tariff benefits.
“Based on this, we can see that the momentum of the unit is very good,” he said.
