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elf Beauty Q2 net sales jump 51%, surpassing estimates on strong retailer, e-commers channels

By Reuters News


Overview

  • Beauty products maker's fiscal Q2 net sales rose 51%, beating analyst expectations

  • Adjusted diluted EPS for fiscal Q2 increased year-over-year

  • Company raised full-year net sales growth outlook to 22-24%


Outlook

  • Company raises fiscal 2027 net sales growth outlook to 22-24% from 18-20%

  • Company expects fiscal 2027 net sales of $2.00-2.03 bln

  • Company forecasts fiscal 2027 adjusted diluted EPS of $3.82-3.86


Result Drivers

  • CHANNEL GROWTH - Co said sales growth was driven by strong performance in both retailer and e-commerce channels, in the US and internationally

  • MARGIN IMPROVEMENT - Gross margin rose due to lower tariffs, favorable product mix and tariff refunds, partly offset by price investments

  • ACQUISITION OUTPERFORMANCE - Outperformance of rhode revenue results led to higher contingent consideration expense


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Beat

$520.82 mln

$470.30 mln (17 Analysts)

Q2 Net Income

$30.03 mln

Q2 Gross Profit

$370.22 mln

Q2 Operating Income

$52.43 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the personal products peer group is "buy"

  • Wall Street's median 12-month price target for e.l.f. Beauty, Inc. is $117.00, about 4.9% above its November 3 closing price of $111.50

  • The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 24 three months ago


Reuters Recommended Reads

  • Nov 4 - Elf sees Q2 sales boost with marketing, Europe expansion

  • Nov 2 - Estee Lauder cuts promotions as luxury fragrances help lift outlook

  • Nov 4 - Estee Lauder sets 2030 growth, margin targets as turnaround advances


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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