The Beauty Group Records Continued Growth and Elevates Full-Year Outlook Ahead of Major International Expansion
E.l.f. Beauty boasted an impressive 22nd quarter of growth as it prepares for a significant international expansion following a rise in its full-year outlook. The company saw its net sales grow by 50 percent to hit $324.5 million during the first quarter of its fiscal year 2025 – surpassing Wall Street’s forecast of $302.6 million.
The first quarter also saw E.l.f. Cosmetics overtake L’Oréal, making it the second-biggest color cosmetics brand in the U.S with 12 percent market shares, according to NielsenIQ data. E.l.f. Skin also gained traction, becoming the ninth-largest mass skin care brand in the U.S with a 2 percent market share.
The company’s net income for the quarter dipped slightly year over year, dropping to $47.6 million from $52.9 million. The diluted earnings per share were 81 cents, a decrease from 93 cents the previous year. However, on an adjusted basis, the net income rose to $64.3 million during the three months ending June 30, up from $62.9 million. The adjusted diluted earnings per share remained the same at $1.10, significantly higher than the Wall Street estimates of 84 cents.
E.l.f. Beauty’s chairman and CEO, Tarang Amin, comments, “We are off to a strong start this fiscal year, delivering 50 percent net sales growth and 260 basis points of market share gains in Q1. This quarter marked our 22nd consecutive quarter of both net sales growth and market share gains — putting E.l.f. Beauty in a rarified group of high-growth consumer companies.”
The company has also uplifted its full-year outlook for sales to range between $1.28 billion and $1.3 billion, a rise from a previous projection of $1.23 billion to $1.25 billion. Its adjusted diluted earnings per share are now set to be between $3.36 and $3.41, an increase from the earlier estimate of $3.20 to $3.25.
After launching in Italy and the Netherlands, E.l.f. recently announced plans to expand to Germany via the drug store chain Rossmann, thus charting its most significant international expansion yet. “Germany’s the largest cosmetics market in Europe,” explains Amin. He emphasizes the importance of a good partnership saying, “For us, the approach is more than what country you pick. It’s do we feel we have the right partner? One of the things that made us successful in Italy is that Douglas gave us a lot of support, the same with Etos in the Netherlands. They really got behind the brand. We feel Rossmann is going to be a terrific partner for us to get the brand into Germany.”
An expansion to Sephora Mexico is also on the cards for E.l.f. later this year. Amin confirms that more international expansions, being a top priority for the company, will be announced throughout the year.
Amin also reveals, “We’re seeing this pent-up consumer demand, mainly because of our strength in social. It seems like consumers are ready for E.l.f. well before we get into a particular country and that’s really been great to see.”
In related news, Naturium, a brand recently acquired by E.l.f., is in the midst of a nationwide rollout into Ulta Beauty. Amin is optimistic that the rollout is expected to conclude in the next few days.