E.l.f. Beauty reported a 51% increase in net sales in its second fiscal quarter, beating Wall Street expectations, according to CNBC. The company said it saw its 31st consecutive quarter of net sales growth. The revenue increase came from both retail and e-commerce channels in the U.S. and internationally.
CEO Tarang Amin told CNBC, "The thing I'm most pleased about is we saw strength across our entire portfolio. Every one of our brands contributed strong growth this quarter." Amin said E.l.f. is the most-searched brand on TikTok Shop and the No. 2 brand in cosmetics on that platform. The company also reported strong results for Rhode, the skincare brand it acquired last year.
E.l.f. raised its full fiscal-year guidance. It now expects net sales of $2 billion to $2.03 billion, up from $1.94 billion to $1.97 billion. It also raised its adjusted EBITDA projection to $421 million to $427 million, from $401 million to $407 million. Adjusted earnings per share are now expected between $3.82 and $3.86, compared with the prior range of $3.50 to $3.55. The company also projects net income of $231 million to $233 million, up from $212 million to $215 million.
For the period ended Sept. 30, E.l.f. reported net income of $30.03 million, or 50 cents per share, compared with roughly $3 million, or 5 cents per share, a year earlier. International business rose 165%, according to the company. Amin told CNBC that only 25% of the company's business is outside the U.S.
The company said its gross margin increased 1.6% during the quarter, including a 0.3% benefit from tariff refunds. Amin said E.l.f. expects about $55 million in tariff refunds for the year. He told CNBC the company lowered the price of about 10% of its units by $1 because of the tariff benefits. Amin also said the company is "very bullish" on the holiday season.