AUS
NZ
UK
CA
USA
IND
Highlights
- e.l.f. Beauty achieves 31% net sales growth in Q3, totaling $355.3 million.
- Company gains 220 basis points of market share in the U.S. and improves gross margin to 71%.
- Nine-month net sales grow 40%, reaching $980.9 million.
e.l.f. Beauty (NYSE:ELF) reported decent performance for Q3 fiscal 2025, with net sales increasing by an impressive 31% year-over-year, totaling $355.3 million. This growth comes as the company gained 220 basis points of market share in the U.S., demonstrating its growing presence and consumer demand in the competitive beauty market. The company's gross margin also saw improvement, rising by 40 basis points to 71%, driven by favorable foreign exchange impacts and effective cost savings.
In terms of profitability, e.l.f. Beauty delivered strong results. The company posted GAAP net income of $17.3 million and adjusted net income of $43.0 million. Adjusted EBITDA for the quarter came in at $68.7 million, reflecting solid operational efficiency and strong financial performance. The results continue a positive trend for the company, which has now posted 24 consecutive quarters of net sales growth.
For the nine-month period ending December 31, 2024, e.l.f. Beauty reported a 40% increase in net sales, totaling $980.9 million. This reflects the company's strong momentum and ability to expand its footprint both in the U.S. and internationally. The growth highlights e.l.f.'s continued success in capturing market share and its ability to remain a key player in the beauty industry.
However, despite these impressive results, e.l.f. Beauty updated its fiscal 2025 outlook due to softer-than-expected trends in January. As a result, the company now expects net sales growth to be in the range of 27-28%, down from the previous projection of 28-30%. Net sales for the fiscal year are now expected to be between $1,300 million and $1,310 million, with adjusted diluted EPS expected to be between $3.27 and $3.32, reduced from the previous range of $3.47 to $3.53.
Along with the lowered outlook, e.l.f. Beauty experienced a rise in its SG&A expenses, which increased to 61% of net sales. This increase was primarily driven by higher marketing and operational costs. Additionally, the company reported a 306% increase in other expenses, largely due to foreign currency exchange losses, which impacted its overall financial position.
