E.l.f. Beauty raises outlook following double-digit growth

E.l.f. Beauty has delivered a 40% increase in sales for the second quarter ending 30 September, driven by strength in both retailer and e-commerce channels.

Net sales reached £233.1 million ($301.1 million) during the three months, driven by strength in both retailer and e-commerce channels, in the US and internationally.

Gross margin increased 40 basis points to 71%, primarily driven by cost savings, favourable foreign exchange impacts, and price increases in its international markets, partially offset by mix and higher transportation costs

For the six months ending 30 September, net sales increased 45% to £484.3 million ($625.6 million). Meanwhile, gross margin lifted 60 basis points to 71%.

Looking ahead, E.l.f. Beauty expects sales growth between 28-30% for FY25, compared to 25-27% expected previously.

Tarang Amin, Chairman and Chief Executive Officer at E.l.f. Beauty, said: "This was our 23rd consecutive quarter of both net sales growth and market share gains. We continue to make progress across colour cosmetics, skincare and international and believe our unique areas of advantage will fuel our ability to win in fiscal 2025 and beyond."

The trading update follows E.l.f. Beauty's "strongest year" of sales growth, up 77% for the year ending 31 March 2024.