E.l.f Beauty reported 31% net sales growth for its third-quarter 2025 earnings during a call on Thursday.
“Q3 marked our 24th consecutive quarter of both net sales growth and market share gains, putting E.l.f. Beauty in a rarefied group of high-growth companies,” chairman and CEO Tarang Amin said on the call. “We’re one of only six public consumer companies out of 546 that has grown for 24 straight quarters and average at least 20% percent sales growth per quarter.”
Net sales increased 31% to $355.3 million and was driven by domestic and international retail and e-commerce. Still, the conglomerate wasn’t immune to a post-holiday sales slowdown.
“At the same time [we report growth], our consumption trends to start calendar year 2025 have been softer than we expected,” Amin said. “First, the [beauty] category continued to decline in January. We believe this decline is reflective of consumers stocking up in a highly promotional December and lower social conversation around beauty. Consumer mind share is focused elsewhere, including wildfires in L.A. and uncertainty around the TikTok platform.”
“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. Our updated outlook for fiscal 2025 reflects an expected 27%-28% year-over-year increase in net sales, as compared to an expected 28%-30% increase previously,” said E.l.f. Beauty CFO Mandy Fields.
E.l.f. Beauty owns E.l.f. Cosmetics and E.l.f Skin, as well as Keyes Soulcare, Well Beauty, Well People and Naturium, which it acquired for $355 million in a cash and stock deal in September of 2023.
Amin and Fields also shared the company’s main areas of focus for the year ahead, which include digital, color cosmetics, skin care and international.
As for President Donald Trump’s tariff increases on goods made in China, where E.l.f manufacturers and finishes the majority of its products, E.l.f. executives shared their plan to pull from the company’s 2019 playbook.
“As a reminder, tariff heights will not impact our current fiscal year results. We plan to address our response to the incremental tariffs in our fiscal 2026 outlook in May,” CFO Fields said on the call. “We believe we have a successful playbook to leverage from 2019 when tariffs move to the 25% level. This included supplier concessions, cost savings and select price increases.”
The company is also actively moving manufacturing out of China. “This time around, with our increased supplier diversification outside of China and our growing international sales base, we believe we have multiple levers to address the impacts of these tariffs,” Fields said.
As for the future, E.l.f Beauty will expand shelf space domestically in Walgreens, Target and Dollar General, while eyeing more international growth. “We’re currently in conversation with pretty much every retailer,” CEO Amin said. “There isn’t a retailer out there that doesn’t want to help E.l.f. given our growth profile.”
