E.L.F. Beauty saw its second-quarter net sales increase by 76% to $215.5 million, with the company observing strong demand across its retail and eCommerce channels.
For the first half of the year, the company saw its net income rise to $86.2 million, marking a significant improvement over the $26.2 million the company reported in the same period a year ago. And in the second quarter, the company saw its net income rise to $33.3 million, up from $11.7 million in the same quarter last year.
Meanwhile, the company’s profit margin grew nearly threefold compared to the year-ago period.
The beauty retailer, which is today best known for its affordable pricing options and viral TikToks, benefitted from a 75% increase in digital sales during the quarter, while sales in international markets rose 157% year over year. Demand for the brand’s skincare line was also up by more than 100%.
“We continue to deliver exceptional, consistent, category-leading sales growth,” said E.L.F. Beauty Chairman and Chief Executive Officer Tarang Amin.
“In Q2, we grew net sales by 76% and category share by 330 basis points, marking our 19th consecutive quarter of growth in each. As we look ahead, the significant whitespace we see across color cosmetics, skincare, and international gives us confidence that we are in the early innings of unlocking the full potential we see for E.L.F. Beauty,” Amin said.
Amin added that the company has been able to maintain high margins despite its heavy reliance on wholesale, as it enjoys high volumes and is not reliant on discounting and promotions like some of the other players in the beauty space.
E.L.F. Beauty’s shares went up by nearly 9% in extended trading after the company issued its earnings report.
Taking its strong performance into consideration, E.L.F. Beauty has reportedly raised its guidance for fiscal 2024, with the company now expecting a 55% to 57% year-over-year increase in net sales, up from its previous projection of 37% to 39%. The company also expects its full-year adjusted earnings to be in the $144 million to $146 million range, compared to its previous guidance of $125 million to $127 million.