e.l.f. Beauty has reported financial results for Q3 of fiscal 2025, driven by strong performance across both retailer and e-commerce channels domestically and internationally. That said, the brand has flagged "softness" in results for January 2025, leading to a lowering of full-year forecasts.
The company's net sales for the quarter ended December 31, 2024, increased by 31% year-over-year, reaching $355.3 million. This growth was fueled by continued category leadership and effective marketing strategies, per the company. Gross margin also improved by 40 basis points, reaching 71%, despite higher transportation costs and product mix challenges.
The company's adjusted net income for the quarter was $43.0 million, with adjusted diluted earnings per share at $0.74. Adjusted EBITDA was $68.7 million, representing 19% of net sales, up 16% compared to the prior year.
For the nine months ending December 31, 2024, e.l.f. Beauty reported a 40% year-over-year increase in net sales, reaching $980.9 million. Gross margin for this period rose by 50 basis points to 71%, while adjusted net income totaled $152.3 million. Adjusted diluted earnings per share for the nine months were $2.61, reflecting continued momentum in both domestic and international markets.
However, the company has revised its full-year outlook for fiscal 2025. Due to softer-than-expected sales trends in January 2025, e.l.f. Beauty now expects net sales growth of 27-28% for the fiscal year, slightly lower than the previously projected 28-30%. The updated forecast places net sales between $1,300 million and $1,310 million, compared to the previous range of $1,315 million to $1,335 million.
Mandy Fields, Chief Financial Officer of e.l.f. Beauty, stated, “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. Despite this adjustment, we remain confident in our long-term growth trajectory.”
With $73.8 million in cash and cash equivalents and $154.1 million in long-term debt as of December 31, 2024, e.l.f. Beauty remains well-positioned to continue its growth in key areas including digital, color cosmetics, skincare, and international markets. The company’s consistent performance underscores its ability to adapt to market conditions while driving long-term success.
