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.
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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.
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.
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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 sales surge more than expected
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.
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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 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. However, the popular discount retail store chain has been struggling this year amid intense competition from rivals and big-box retail stores like Walmart.
In August, Dollar General reported sales and earnings that were below expectations. It said sales at stores open at least one year only inched a half-percent higher from the previous year.
The sluggish sales growth prompted management to cut its outlook for sales and profit in the fiscal year ending January 31. It now expects same-store sales growth of just 1% to 1.6%, down from its previous outlook of as high as 2.7%.
Its partnership with e.l.f. is part of a strategy to reinvigorate its brand and drive customers back to stores. For e.l.f. Beauty, the partnership expands its reach into rural markets.
"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.
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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%.
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