Overview
- E.l.f. posted 38% net sales growth to $489.5 million and adjusted EPS of $1.24 for the December quarter, beating estimates and lifting full-year guidance to $1.60–$1.61 billion in sales and $3.05–$3.10 in adjusted EPS.
- Rhode, acquired for roughly $1 billion, contributed $128 million to quarterly growth and is projected to deliver $260–$265 million this fiscal year as the brand leads at Sephora North America, breaks launch records in the U.K., and prepares to enter Australia via Mecca.
- E.l.f. continues to face tariff pressure, previously estimating more than $50 million in annual costs with about 75% of production in China; gross margin slipped 30 basis points to 71% despite mitigation that includes a $1 price increase and supply-chain shifts.
- E.l.f. shares spiked up to 15% after hours on the report before giving back most gains, and later fell more than 5% as some investors viewed the guidance raise as modest relative to expectations.
- Estée Lauder reported 6% quarterly net sales growth to $4.2 billion and raised its fiscal outlook, but warned tariffs could cut about $100 million from full-year profitability, sending the stock down more than 20% as it proceeds with a restructuring that includes 5,800–7,000 workforce reductions.