Growing up, e.l.f. Beauty was every girl’s go-to makeup brand due to its incredibly affordable prices and extensive range of product offerings.
Every girl teenage girl had at least one e.l.f. product in their makeup bag that they swore by and may even still purchase to this day despite the endless options of new makeup brands that have emerged since.
💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸
E.l.f. Beauty, the creator of e.l.f. Cosmetics and e.l.f. SKIN is a global American beauty company known for its premium-quality, cruelty-free, and clean beauty products that are attainable to all.
Related: Macy’s makes huge investments for its Thanksgiving Day Parade
Surviving the hormonal teenage years was hard enough, but somehow, it’s as if e.l.f. was there to help make them a little easier.
It developed clean skincare to prevent our sensitive skin from breaking out, and even if a pimple happened to ruin our day, e.l.f. also had just the right premium-quality makeup product to cover it up without making it even worse.
It may be the nostalgia that people associate with e.l.f. or the loyalty they feel toward its products, but no matter the reason, the brand continues to be a total success.
E.l.f. Beauty makeup products.
E.l.f. Beauty achieves a 40% sales increase and exceeds analysts’ expectations
On Wednesday, e.l.f. Beauty (ELF) published its second-quarter earnings report for 2025, and the shocking results had investors’ and analysts’ jaws on the floor.
According to e.l.f.’s earnings report, net sales increased by 40% to $301.1 million, exceeding analysts’ expected $286 million and marking the company’s 23rd consecutive quarter of net sales growth.
The company reported earnings per share (EPS) of $0.77, which also beat analysts’ expectations of $0.43.
According to e.l.f., this massive increase in sales was driven by both its retail and e-commerce channels in the U.S. and Internationally.
Related: Peloton partners with NFL to target an unexpected audience
However, sales in the U.S. reported a softer growth of 16% compared to the company’s expected 20% growth.
Nonetheless, e.l.f. has proven to be a total success in its international market, reporting a 91% sales growth in the quarter and representing 21% of the company’s total net sales.
Although e.l.f. increased its selling, general and administrative expenses (SG&A) to $186.1 million, a 53% increase compared to last year, it still achieved a 71% gross margin.
This increase can be attributed to the company’s heavy investments in its marketing strategies, especially digitally, which has been one of the biggest driving factors in its success among younger shoppers.
To keep up with its high customer demand, the company also increased its inventory to nearly $239 million, up 62.6% from the same time a year ago.
E.l.f. Beauty announces a partnership with Dollar General
During its earnings call, e.l.f. announced it had partnered with Dollar General to assess the slowdown in its U.S. sales.
Dollar General is a retailer known for its incredibly affordable prices, which attract lower-income customers. With this partnership, e.l.f. will be able to reach rural markets to expand its audience further and increase the brand’s accessibility.
“Our mission is to make the best of beauty accessible to every eye, lip, and face, and the accessibility is quite important to U.S. Dollar General’s stated strategy of serving the underserved fits perfectly,” said e.l.f. Beauty CEO Tarang Amin during Wednesday’s earnings call.
E.l.f. Beauty increases its full-year guidance for 2025
After reporting its outstanding quarterly earnings on Wednesday, e.l.f. Beauty raised its full-year guidance, showing its confidence in the company’s continuous growth.
More Retail:
Peloton partners with NFL to target an unexpected audienceShein partners with a popular children’s clothing brandKeeping Up With Fashion: Prada, Diesel look outside the box for latest wins
According to its outlook, e.l.f. expects net sales to grow 28% to 30% year-over-year and EPS to be between $3.47 and $3.53.
Due to its fast-growing popularity in its international markets, e.l.f. will focus on market expansion while devising new strategies to accelerate growth in the U.S.
The company will continue investing in its digital presence to increase brand awareness and champion innovation through product diversity.
As of Thursday’s market open hours, e.l.f. Beauty’s shares rose over 17%.
Related: Veteran fund manager sees world of pain coming for stocks
