E.l.f. Beauty On Wednesday, it was announced that net sales for the second fiscal quarter increased by 51% year-on-year, significantly exceeding Wall Street's expectations.

This beauty company stated that this is its 31st consecutive quarter of net sales growth, and attributed this performance to the strong performance of its product portfolio. The company added that the surge in revenue was driven by both retail and e-commerce channels in the United States and international markets.

"What I am most satisfied with is that we see strong performance across our entire product portfolio," said CEO Tarang Amin in an interview with CNBC. "Each of our brands has achieved strong growth this quarter."

Amin also indicates that E.l.f is the brand with the highest search volume on TikTok Shop, and it is also the second-ranked brand in the makeup category on that platform. The company also stated that the skincare brand Rhode acquired last year also performed strongly.

After this quarter's performance exceeded expectations, the company raised its financial year outlook. E.l.f. Currently, the annual net sales are expected to be between $2 billion and $2.03 billion, up from the previous range of $1.94 billion to $1.97 billion. The company has also adjusted its subsequent EBITDA forecast from $401 million to $407 million to $421 million to $427 million.

E.l.f. It is currently estimated that the adjusted earnings per share for the whole year will be between $3.82 and $3.86, which is higher than the previous guidance of $3.50 to $3.55. The company also expects net profit to be between $231 million and $233 million, which is higher than the previous range of $212 million to $215 million.

After its performance in the last quarter exceeded its own expectations, the company had already raised its guidance once.

Amin indicates that the company is 'very optimistic' about the holiday season and expects sales to remain high by the end of the year.

According to the survey of analysts by LSEG, the performance of E.l.f in its second fiscal quarter compared to Wall Street's expectations is as follows:

• Earnings per share: $1.21 after adjustment, compared to an expected $0.60.
• Revenue: $520.8 million, with an expectation of $470.3 million.

For the fiscal quarter ending September 30, E.l.f reported a net profit of $30.03 million, or 50 cents per share, which represents a significant increase from the same period last year's $3 million, or 50 cents per share.

Net sales increased by 51% to $520.8 million.

E.l.f. International channels also achieved significant growth, with business increasing by 165% year-on-year. Amin told CNBC, that currently only 25% of the company's business comes from markets outside of the United States, which means there are still "huge opportunities" overseas to continue this momentum.

The company also stated that its gross margin increased by 1.6% this quarter, including a 0.3% boost from tariff refunds. Amin previously mentioned that the company plans to reinvest all of this funds back into pricing and marketing in order to continue driving growth.

Although E.l.f received most of the refunds in the first fiscal quarter, some of the funds were confirmed in the second fiscal quarter. The company expects to receive a total of approximately $55 million in refunds for the whole year. Amin told CNBC on Wednesday that, benefiting from tariff incentives, the company has lowered the price of about 10% of its products by $1.

"We see the excellent sales momentum that comes from this," he said.