E.l.f. Beauty reported a 51% increase in net sales for its second fiscal quarter ended Sept. 30, surpassing Wall Street expectations. The company achieved its 31st consecutive quarter of net sales growth, driven by strength across all its brands in both retail and e-commerce channels in the U.S. and internationally.
Net income reached $30.03 million, or 50 cents per share, compared with $3 million, or 5 cents per share, a year earlier. International business grew 165%, though it represents only 25% of total company revenue.
E.l.f. raised its full fiscal-year guidance. The company now expects net sales between $2 billion and $2.03 billion, up from $1.94 billion to $1.97 billion. Adjusted EBITDA guidance increased to $421 million to $427 million from $401 million to $407 million. Adjusted earnings per share now project to $3.82 to $3.86, up from $3.50 to $3.55. Net income guidance rose to $231 million to $233 million from $212 million to $215 million.
CEO Tarang Amin told CNBC that "every one of our brands contributed strong growth this quarter." E.l.f. holds the top spot as the most-searched brand on TikTok Shop and ranks No. 2 in cosmetics on the platform. The Rhode skincare brand, acquired last year, also performed strongly.
Gross margin increased 1.6% during the quarter, including a 0.3% benefit from tariff refunds. The company expects to receive $55 million total in tariff refunds for the year. Amin said E.l.f. reduced prices on about 10% of its units by $1 based on these benefits. "We're seeing great unit momentum based on that," he said.
The company is "very bullish" on the holiday season, Amin added.