e.l.f. Beauty lifts its annual sales outlook after 51 per cent growth
e.l.f. Beauty increased fiscal second-quarter sales to 520.8 million dollars and raised its full-year revenue forecast. Quarterly net income rose to 30 million dollars, while tariff refunds contributed to a higher gross margin. Marketing and distribution expenses also increased. The cosmetics group ended the period with debt above its cash balance.
Economics & Markets··Morning
Annual sales forecast moves higher
Cosmetics company e.l.f. Beauty raised its fiscal 2027 sales forecast after reporting a 51 per cent increase in second-quarter net sales. The quarter ended on 30 September, with sales reaching 520.8 million dollars. Management put the new annual sales range at 2,003–2,029 million dollars, replacing its previous range of 1,938–1,968 million dollars.[1], [2]
The revised range implies annual sales growth of 22–24 per cent. Management also increased its adjusted earnings before interest, tax, depreciation and amortisation forecast to 421–427 million dollars. Its adjusted earnings-per-share target rose to 3.82–3.86 dollars. The changes apply to the full fiscal year following the results for its first six months.[1]
Margins improve alongside higher expenses
Quarterly gross margin reached 71 per cent after an increase of 160 basis points. Tariff refunds supplied 30 basis points of that improvement. Selling, general and administrative expenses rose by 69 million dollars to 300.1 million dollars. Adjusted expenses increased by 81.9 million dollars to 275.1 million dollars, with marketing, distribution, compensation and depreciation contributing to the increase.[1]
Net income for the quarter was 30 million dollars, compared with approximately 3 million dollars a year earlier. Diluted earnings per share were 0.50 dollars, while the adjusted figure was 1.21 dollars. Adjusted net income reached 72.7 million dollars. Adjusted earnings before interest, tax, depreciation and amortisation grew by 86 per cent to 123.4 million dollars, equivalent to a margin of 24 per cent. The revaluation of the contingent payment for its acquisition of the rhode brand added an expense of 17.7 million dollars.[1]
Six-month sales pass a billion dollars
For e.l.f. Beauty, sales across the first six months increased by 43 per cent to 1,000.2 million dollars. Gross margin was 77 per cent, with tariff refunds contributing 520 basis points of its 760-basis-point increase. Six-month net income was 96.6 million dollars and adjusted net income was 177.2 million dollars. At the end of September, cash stood at 350.8 million dollars and debt at 826.7 million dollars.[1]
