Elf Beauty (ELF) Q2 2025 Earnings | Wilnesh News

Elf beauty It raised its full-year guidance on Wednesday after reporting a 40% sales increase.

The company’s shares rose nearly 10% in after-hours trading.

According to LSEG, the cosmetics retailer’s revenue and profit far exceeded expectations, and it now expects fiscal 2025 sales to be between $1.32 billion and $1.34 billion, higher than analysts’ expectations of $1.3 billion.

Here’s how Elf performed in its fiscal second quarter compared to Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):

• Earnings per share: Adjusted 77 cents, expected 43 cents
• income: $301 million vs. $286 million expected

The company reported net income of $19 million, or 33 cents a share, for the three months ended Sept. 30, compared with $33 million, or 58 cents a share, a year earlier. Excluding one-time items, Elf’s profit was $45 million, or 77 cents per share.

Sales increased to US$301 million, an increase of approximately 40% from US$216 million in the same period last year.

Elf raised its full-year revenue guidance to $1.3 billion from the previous $1.28 billion and raised its adjusted profit guidance. The retailer forecast adjusted earnings of $3.47 to $3.53 per share, up from its previous forecast of $3.36 to $3.41 per share. Analysts had been expecting profit guidance of $3.51, according to LSEG.

The cosmetics company has been booming over the past few years, thanks to viral marketing and its ability to win over younger shoppers with value-for-money versions of its name-brand products.

“We see Elf’s multi-generational appeal, and not only are we the No. 1 brand among Generation Z by a considerable margin, but we are also the most purchased brand among Generation Alpha and Millennials,” CEO Talang said. ·Tarang Amin said. “We are attracting consumers from almost every age and income group, which is great to see and I think it just speaks to the strength of our strategy and the quality of our product.”

Amin said that success led both parties to Target and walgreens The plan is to expand the shelf space they allocate to retailers starting in the spring.

During the quarter, Elf’s selling, general and administrative costs increased by $74 million to $186.1 million, accounting for 62% of net sales, but still achieved a gross profit margin of 71%, an increase of 0.4 percentage points from the same period last year.

Amin attributed the increase in margins to favorable foreign exchange rates, previously implemented price increases internationally and its overall value proposition.

“Our ability to build exceptional quality at such extraordinary prices is a real driver, but most of our profit growth over the years has been through our innovation portfolio,” Amin said. “When we launch our new Holy Grail , it gives us the opportunity to slightly improve our margins while still delivering incredible value.”

The company has also been expanding international sales, which now account for about 21% of total revenue.

Amin said its investments in markets outside the United States would help soften the blow of any potential tariff increases under President-elect Trump.