ELF Delivers 40% Net Sales Growth in Q2 2025

ELF achieved net sales growth and market share gains for the 23rd consecutive quarter.

In Q2, the company delivered 40% net sales growth fueled by 195 basis points of market share gains in the US and 91% net sales growth internationally, per Tarang Amin, ELF Beauty’s chairman and CEO.

For the three months ended Sept. 30, 2024, compared to the prior-year quarter, net sales increased 40% to $301.1 million, primarily driven by strength in both our retailer and e-commerce channels, in the US and internationally.

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

Selling, general and administrative expenses increased $74.0 million to $186.1 million, or 62% of net sales.

For the six months ended Sept. 30, 2024, net sales increased 45% to $625.6 million, compared to the prior-year quarter, primarily driven by strength in both retailer and e-commerce channels, in the US and internationally.

Gross margin increased approximately 60 basis points to 71%, primarily driven by cost savings, favorable foreign exchange impacts, and price increases in our international markets, partially offset by mix and inventory adjustments.

SG&A increased $162.6 million to $366.7 million, or 59% of net sales.

As of Sept. 30, 2024, the company had $96.8 million in cash and cash equivalents and $156.6 million of long-term debt and finance lease obligations, as compared to $167.8 million in cash and cash equivalents and $57.7 million of long-term debt and finance lease obligations as of Sept. 30, 2023.

Updated Fiscal 2025 Outlook

The company anticipates net sales to be $1.3 billion for FY 2025.