E.L.F. Beauty announces fiscal results and partnership with Dollar General for increase in US sales

E.L.F. Beauty’s net sales increased 40% to US$301.1 million, driven by strength in its retailer and e-commerce channels for the three months ending on September 30 this year, compared to the three months ended September 30, 2023. In the brand’s 2025 Q2 earnings call, the CEO announced it would expand to a subset of Dollar General stores in November. 

Tarang Amin, E.L.F Beauty’s chairman and CEO, says: “Dollar General has a stated strategy of serving the underserved, with 80% of its stores serving markets of 20,000 people or less.”

“With this launch, we hold to our mission to democratize access for consumers who otherwise wouldn’t have the best of beauty, particularly in rural areas, which have traditionally been served by only the major legacy brands.”

In financial news, for the six months ended September 30, 2024, E.L.F. Beauty’s net sales increased 45% to US$625.6 million. The cosmetics company says it performed well in the US and internationally.

“In Q2, we delivered 40% net sales growth, fueled by 195 basis points of market share gains in the US and 91% net sales growth internationally,” adds Amin.

“This was our 23rd consecutive quarter of net sales growth and market share gains. We continue to make progress across color cosmetics, skin care and international sales and believe our unique areas of advantage will fuel our ability to win in fiscal 2025 and beyond.”

Three-month results

E.L.F. Beauty’s gross margin increased approximately 40 basis points to 71%. It attributes this to cost savings, “favorable” foreign exchange impacts and price increases in its international markets, partially offset by mix and higher transportation costs.

E.L.F. recently partnered with Stanley to release a limited-edition cup.Selling, general and administrative (SG&A) expenses increased from US$74.0 million to US$186.1 million. Adjusted SG&A increased from US$62.5 million to US$160.3 million, or 53% of net sales.

The company says the increase in SG&A dollars was due to increased marketing and digital spending, compensation and benefits, operations costs, retail fixturing and visual merchandising costs, depreciation and amortization and professional fees.

The net income was US$19.0 million on a GAAP basis while the adjusted net income amounted to US$45.0 million.

Diluted earnings per share were US$0.33 on a GAAP basis. Adjusted diluted earnings per share were US$0.77. Adjusted EBITDA was US$69.3 million, or 23% of net sales, up 15% year over year.

Six-month results

The gross margin increased by approximately 60 basis points to 71%. The company attributed the reasoning to the same as the three-month results.

SG&A increased from US$162.6 million to US$366.7 million, 59% of net sales. Adjusted SG&A increased from US$142.5 million to US$324.7 million, 52% of net sales.

The increase in SG&A dollars was attributed to the same reasons as for the three-month period.

Net income was US$66.6 million on a GAAP basis, and adjusted net income was US$109.3 million. Diluted earnings per share were US$1.14 on a GAAP basis and adjusted diluted earnings per share were US$1.87.

Adjusted EBITDA was US$146.8 million, or 23% of net sales, up 9% year over year.

Dollar General partner

The average price of an E.L.F. product is US$6.50. Unlike traditional dollar stores, Dollar General offers low-priced items, which cap at US$0.99 or US$1.

The move is part of E.L.F. Beauty’s strategy to bolster US sales after trailing international sales in the second quarter. The discount retailer has more than 20,000 stores across 48 states.