e.l.f. Beauty, Inc. reported a net sales increase of 9% for the three months ended June 30, 2025, reaching $353.7 million compared to $324.5 million in the same period last year. The company's gross profit also rose to $244.5 million, up from $231.3 million, although the gross margin decreased to 69% from 71% due to increased costs associated with tariffs and product mix. Operating income for the quarter was $48.7 million, a slight decline from $50.7 million in the prior year, while net income fell to $33.3 million from $47.6 million, resulting in diluted earnings per share of $0.58 compared to $0.81.
The company experienced significant changes in its financial performance compared to the previous fiscal period, particularly in its selling, general, and administrative (SG&A) expenses, which increased by 8% to $195.8 million. This rise was attributed to higher professional fees, increased marketing and digital spending, and costs associated with retail fixturing. Additionally, e.l.f. Beauty's cash and cash equivalents increased to $170.0 million, and the company had a borrowing capacity of $243.3 million under its Amended Revolving Credit Facility as of June 30, 2025.
Strategically, e.l.f. Beauty completed the acquisition of Naturium LLC in October 2023 for $333 million, which has been integrated into its financial results. The company also announced the acquisition of HRBeauty LLC, known for the rhode brand, for $800 million, which is expected to enhance its market presence. This acquisition is anticipated to be financed through a combination of cash and a new term loan facility established under the Fifth Amendment to its Amended Credit Agreement.
Operationally, e.l.f. Beauty reported a strong performance in both its retail and e-commerce channels, with e-commerce sales increasing by 17%. The company continues to expand its geographic footprint, having opened offices in the UK and India, and is actively pursuing new retail partnerships. As of June 30, 2025, the company had 56.7 million shares outstanding, reflecting a slight increase from the previous year.
Looking ahead, e.l.f. Beauty remains focused on navigating the competitive beauty market while managing the impacts of tariffs and supply chain disruptions. The company plans to continue investing in product innovation and marketing to drive growth. However, it acknowledges potential risks, including economic conditions, regulatory changes, and the challenges associated with integrating new acquisitions, which could affect its future performance.
About e.l.f. Beauty, Inc.
e.l.f. Beauty, Inc. is a multi-brand beauty company offering inclusive, cruelty-free, vegan cosmetics and skincare products. Its core brands—e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People, and Keys Soulcare—serve global markets through retail and e-commerce channels. The company emphasizes innovation, affordability, and sustainability, leveraging digital marketing and direct-to-consumer sales to disrupt industry norms and connect with diverse, value-conscious consumers.
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