E.l.f. Beauty reported stronger-than-expected earnings for its third fiscal quarter on Wednesday and raised its full-year guidance, supported by robust global demand and contributions from its recent acquisition of celebrity skincare brand Rhode.
The cosmetics company posted adjusted earnings per share of $1.24, well above analyst expectations of 72 cents. Revenue reached $490 million, compared with estimates of $460 million.
Net sales rose 38 percent year on year to $489.5 million, up from $355 million in the same period last year. Adjusted net income increased to $74.5 million, compared with $43 million a year earlier.
Shares of E.l.f. rose as much as 15 percent in after-hours trading following the earnings release, before paring back most of those gains.
A key driver of growth was the company’s acquisition of Rhode, founded by Hailey Bieber. The roughly $1 billion deal added $128 million to net third-quarter sales growth.
E.l.f. said it now expects Rhode to contribute up to $265 million in net sales for the fiscal year, an increase of $65 million from its previous forecast.
The company also raised its full-year outlook, lifting its revenue guidance by $42 million to $50 million, reflecting continued momentum across retail, e-commerce, and international markets.
“Our Q3 results reflect continued category-leading growth,” said Tarang Amin, chief executive of E.l.f. Beauty. He highlighted market share gains for the company’s core cosmetics brand and a strong launch of Rhode at Sephora in the United Kingdom.
E.l.f. Beauty has now delivered consistent growth over the past several years, supported by its value-focused positioning, product innovation, and marketing strategy.
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