Stock Track | e.l.f. Beauty Stock Soars on Stellar Q2 Results, Raised Outlook and Growth Strategies.

Shares of e.l.f. Beauty Inc. $e.l.f. Beauty (ELF.US)$ surged by over 6% on November 7, 2024, after the affordable cosmetics company reported robust fiscal second-quarter results and raised its full-year guidance, defying economic headwinds.

For the quarter ended September 30, the company's net sales jumped 40% year-over-year to $301.1 million, exceeding analyst estimates. Adjusted earnings per share of $0.77 also surpassed Wall Street's consensus, fueled by strong demand for its value-priced beauty offerings across channels, including e-commerce and retail.

The impressive performance was driven by the acquisition of the Naturium skincare brand, continued brand momentum, and effective cost management measures, including favorable currency impact and pricing. e.l.f. Beauty's e-commerce sales skyrocketed by 112%, while its retail channel sales grew by 30% year-over-year.

Buoyed by the strong second-quarter results, e.l.f. Beauty raised its fiscal 2025 outlook, projecting net sales in the range of $1.315 billion to $1.335 billion and adjusted earnings per share between $3.47 and $3.53. The upward revision reflects the company's confidence in its ability to continue gaining market share and capitalizing on the resilient demand for its affordable beauty products amid inflationary pressures.

In a strategic move to further expand its reach, e.l.f. Beauty announced a partnership with Dollar General, a leading discount retailer with a strong presence in rural areas. This collaboration aims to target lower-income customers and drive growth in underserved markets.