E.l.f. Beauty shares have risen 7.4% over the past three months, outperforming both the cosmetics industry and broader market indices.

E.l.f. Beauty has raised its full-year outlook for fiscal 2025, now projecting net sales growth of 25-27% and adjusted EBITDA growth of 26-28%.

In its fiscal first quarter, E.l.f. Beauty reported a remarkable 50% increase in sales, reaching $324.5 million, which prompted the optimistic guidance adjustment.

The company is expected to report a revenue increase of 39.9% for the first quarter of fiscal 2025, with estimates at $302.64 million.

E.l.f. Beauty's adjusted EBITDA for the quarter was $77 million, marking the 22nd consecutive quarter of growth in both net sales and market share.

The company remains confident in consumer demand for its products, even amid broader market concerns.

The skincare segment is also performing well, aided by new product launches and the acquisition of Naturium.

E.l.f. has seen strong performance in color cosmetics, with its SKIN line entering the top 10 brands for the first time.

Despite the positive earnings report, shares fell about 6% in extended trading due to raised but still conservative guidance.

E.l.f. has a history of conservative guidance but has consistently exceeded its projections.

High raw material costs and increased marketing and R&D investments may negatively impact profitability in the short term.