Cosmetics brand ELF Beauty shared positive financial results for the quarter and six months ending September 30, with CEO Tarang Amin attributing the growth to consistent category leadership and strategic market expansion. 

“We delivered 40 per cent net sales growth, fueled by 195 basis points of market share gains in the US and 91 per cent net sales growth internationally,” said Amin.

He added that ELF’s progress in colour cosmetics, skincare, and international markets positions the company well for continued success.

For the three months, net sales rose by 40 per cent to US$301.1 million, driven by solid performance in retail and e-commerce channels domestically and abroad.

The gross margin increased slightly to 71 per cent, aided by cost savings and favourable foreign exchange rates, though partially offset by transportation costs.

Selling, general and administrative expenses (SGA) rose to $186.1 million, or 62 per cent of net sales, primarily due to increased marketing, digital spending, compensation, and operational costs. Adjusted net income reached $45 million.

For the six months, ELF reported a 45 per cent increase in net sales to $625.6 million, again propelled by both US and international growth in retail and online channels.

Gross margin improved to 71 per cent, bolstered by cost savings and pricing adjustments. SGA expenses increased to $366.7 million, or 59 per cent of net sales, driven by factors similar to those in the quarterly results. Adjusted net income for the six months was $109.3 million and adjusted diluted earnings per share were $1.87.

ELF’s adjusted EBITDA for the three- and six-month periods was 23 per cent of net sales, showing 15 per cent and 9 per cent annual increases, respectively. 

 “This was our 23rd consecutive quarter of net sales growth and market share gains,” added the CEO.

“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.”