e.l.f. Beauty reported surpassing Wall Street's sales expectations for the third quarter, driven by growth in both retail and e-commerce channels. However, the company lowered its full-year forecast due to weaker-than-anticipated January sales, causing its share price to drop over 20% in after-hours trading. CEO Tarang Amin attributed the softer start to 2025 to several factors, including category softness, lapping last year's successful lip oil launch, and a slower start for some new products. Despite the downward revision, Amin expressed optimism about the company's long-term prospects, citing growth opportunities in digital, color cosmetics, skincare, and international markets.
surpassed Wall Street’s top-line forecasts in the third quarter, but lowered its full-year forecast on the back of a softer-than-expected January. The latter sent its share price down more than 20 percent in extended trading Thursday.
Net sales increased 31 percent to $355.3 million for the three months ended Dec. 31, primarily driven by strength in both retailer and e-commerce channels, both in the U.S. and internationally. Analysts predicted sales would hit $330 million.inched up to $43 million from $42.8 million a year earlier. Adjusted diluted earnings per share were 74 cents, below Wall Street estimates of 76 cents.team for delivering another quarter of consistent, category-leading growth,” said Tarang Amin, E.l.f. Beauty’s chairman and chief executive officer in a statement, which also indicated the company gained 220 basis points of market share in the U.S. “We believe we are still in the early innings of unlocking the white space we see across digital, color cosmetics, skin care and international,” Amin said. Nevertheless, the company lowered its annual forecast and now expects net sales of $1.3 billion to $1.31 billion, down from the previous forecast of $1.315 billion to $1.335 billion. Adjusted net income is now forecast at a range of $193 to $196 million, down from prior estimate of $205 million to $208 million. “Given softer than expected trends in January, we are taking a prudent approach and lowering our outlook for the final quarter of our fiscal year,” said Mandy Fields, E.l.f. Beauty’s chief financial officer. In an interview with WWD, Amin elaborated on that softer start to 2025, saying that there were three factors at play. “First, the category continued to be soft. The category in the mass side was down 5 percent,” he said. “Second, we’re lapping that massive viral launch we did last year of our lip oils. We could hardly keep them in stock. Then third, a couple of our new products this year are off to a little bit of a slower start. Now we are still in early days. The marketing activations haven’t completely started. We have resets coming, including space expansion at Target and Walgreens, but we always stay cautious until we see a change in trend.”imposing 10 percent tariffs on Chinese imports this month, Amin plans to use the same playbook as he did during the last Trump presidency, only this time he has some additional tools in his toolbox. “We’ve been subject to 25 percent tariffs since 2019 and we used a really balanced playbook to deal with them, between selective pricing, cost savings, supplier concessions. We use a similar playbook this time. Then we have two additional tools that we didn’t have in 2019. One is we’ve got further supplier diversification. We used to have almost 100 percent of our product coming from China. Now it’s a little bit less than 80 percent. We also have a bigger international business. We almost had no business internationally back in 2019.”. We use vendors that may also process your information to help provide our services. // This site is protected by reCAPTCHA Enterprise and the Google WWD and Women's Wear Daily are part of Penske Media Corporation. © 2025 Fairchild Publishing, LLC. All Rights Reserved.
E.L.F. Beauty Sales Forecasts Earnings Market Share Cosmetics Industry
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Spurs Starter, Friday, January 10, 2025: Wembanyama Surpasses 1 Million All-Star VoteYour daily briefing on what's going on with the San Antonio Spurs, including news, draft and more.
Read more »
Beauty Marks: The Week in Beauty, January 2025A roundup of the best beauty trends from the week, highlighting playful looks and experimental styles seen on the red carpet and beyond.
Read more »
New Beauty Favorites to Try This JanuaryAs we welcome in the new year, we're embracing fresh beauty routines and discovering new products. From curl creams to de-puffing devices and dramatic lipsticks, these winter beauty heroes are worth trying.
Read more »
23 Beauty Products Our Editors Loved in JanuaryBazaar editors' favorite beauty products from January 2025, including a Bazaar-approved lip mask and the $15 hydrating serum we're obsessed with.
Read more »
South Surpasses Chicago's Snowfall This JanuaryRare snowfall in the southern U.S. set records, with New Orleans seeing 10 inches and Pensacola getting 5 inches. This surpasses the total snowfall Chicago has experienced this season (3.9 inches). The southern states are experiencing much higher snowfall than usual, while Chicago is tracking below average for January.
Read more »
The 13 Best New Beauty Products of January 2025From Benefit's revamped BadGal mascara to Goop's best-in-show lip treatment.
Read more »