e.l.f. Beauty Surpasses $1 Billion in Net Sales for Fiscal Year-to-Date, Beats Market Expectations
e.l.f. Beauty, a leading cosmetics company, has continued its remarkable growth trajectory, surpassing $1 billion in net sales for the fiscal year-to-date and beating market expectations.
In its Third Quarter Fiscal '25 results, e.l.f. Beauty delivered another quarter of consistent category-leading growth, with net sales increasing by 31% compared to the same period last year. The company also achieved $69 million in adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and increased its U.S. market share by 220 basis points.
This marks the company's 24th consecutive quarter of both net sales growth and market share gains, making e.l.f. Beauty a rarefied group of high-growth companies. In fact, e.l.f. is one of only six public consumer companies out of 546 that has grown for 24 straight quarters, averaging at least 20% sales growth per quarter.
e.l.f. Beauty's fiscal year-to-date results have been exceptional, with the company delivering 40% net sales growth. The company remains confident in its strategy and ability to take market share, despite softer consumption trends starting calendar 2025. Tarang Amin, Chairman and Chief Executive Officer of e.l.f. Beauty, stated that the decline in January is reflective of consumer stocking up in a highly promotional December and lower social conversation around beauty.
e.l.f. Beauty also attributed the softer consumption trend to higher shipments in Q4 last year as retailers built inventory ahead of the big game, as well as initial reads for a couple of its new product launches for Spring 2025 starting off slower than expected. However, the company remains confident in its ability to deliver market-leading growth.
In terms of specific areas with significant runway for growth, e.l.f. Beauty highlighted Digital, Color Cosmetics, Skin Care, and International as key focus areas. The company's digital consumption trends were up nearly 30% year-over-year on top of triple-digit growth in Q3 of last year, with digital channels driving 24% of its consumption in Q3.
e.l.f. Beauty also highlighted the strength of its Color Cosmetics business, which grew 16% in tracked channels compared to a category that was down 5%, increasing its market share by 220 basis points. The company's Beauty Squad loyalty program has surpassed 5.6 million members, with enrollment consistently growing over 20% year-over-year.
e.l.f. Beauty's Q4 outlook is being lowered to minus 1% to plus 2% net sales growth due to the factors mentioned earlier, but the company remains confident in its ability to deliver market-leading growth. As updated, e.l.f. Beauty's outlook contemplates 14% to 16% net sales growth in the second half of 2025, on top of the 77% growth delivered in the second half of last year.
