Overview
- Net sales rose 14% to $343.9 million for the quarter ended Sept. 30, missing the $366 million consensus despite solid demand.
- Adjusted earnings of 68 cents per share beat the 57-cent estimate, while reported net income fell to $3 million and gross margin declined 165 basis points to 69%.
- Full-year outlook calls for $1.55 billion to $1.57 billion in revenue (18% to 20% growth) and adjusted EPS of $2.80 to $2.85, both below LSEG-tracked forecasts.
- Rhode is expected to contribute about $200 million to this fiscal year’s sales and is running at roughly a $300 million annualized pace, with a UK Sephora launch set for Nov. 10.
- Higher China tariffs are projected to cost over $50 million this year; E.l.f. raised prices by $1 in August and briefly paused shipments, and shares fell about 19% in after-hours trading.