Q2 2025 elf Beauty Inc Earnings Call Transcript
Key Points
- e.l.f. Beauty Inc (ELF) reported a 40% increase in net sales for Q2, surpassing their expectations.
- The company achieved its 23rd consecutive quarter of net sales growth and market share gains.
- International sales grew by 91%, contributing to 21% of total net sales, up from 16% a year ago.
- The Beauty Squad loyalty program saw a 30% year-over-year increase in membership, reaching 5.3 million members.
- e.l.f. Beauty Inc (ELF) raised its FY25 guidance, expecting 28% to 30% net sales growth, reflecting confidence in continued market share gains.
- U.S. consumption trends in Q2 were softer than expected, with growth at 16% versus the anticipated 20%.
- The overall color cosmetics category saw a decline of 5% in Q2, indicating a more cautious consumer spending environment.
- The company faced challenges in cycling significant strength from previous product launches, impacting current growth.
- Adjusted SG&A expenses increased to 53% of sales, up from 45% last year, driven by higher marketing and digital investments.
- Inventory levels rose to $239 million, up from $147 million a year ago, due to timing of inventory ownership and increased demand.
Thank you for joining us today to discuss e Beauty's second quarter, fiscal '25 results. I'm Casey Katten, Vice President of corporate development and investor relations with me. Today are Tang Amin, Chairman and Chief Executive Officer and Mandy Fields, senior Vice President and Chief Financial Officer.
We encourage you to tune into our webcast presentation for the best viewing experience which you can access on our website at investor dot of beauty dotcom.
Since many of our remarks today contain forward-looking statements. Please refer to our earnings release and reports filed with the SEC where you'll find factors that could cause actual results to differ materially from these forward-looking statements.
In addition, the company's presentation today includes information presented on a nongaap basis our earnings release contains reconciliations of the differences between the nongaap presentation and the most directly convertable GAAP measure. With that, let me turn the webcast over to Tarang.
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