Elf Beauty raises annual forecasts betting on international expansion drive

Net sales jumped 36% to $479.4 million during the quarter ended June 30, beating analysts' average estimate of $429.5 million, according to data compiled by LSEG.

First-quarter adjusted profit per share of $1.75 also topped the estimate of 71 cents.

Elf, which launched haircare products during the quarter, reported a gross margin increase of 1,400 basis points, including a 1,050-basis-point benefit from tariff refunds.

Elf shares have risen about 14% so far this year, but were trading about 3% down in extended trading.

Elf Beauty raised its annual sales and profit forecast on Wednesday, driven by its expansion push outside of the United States as American shoppers continued to rein in spending in the face of sticky inflation.