E.l.f. Beauty just clocked in its 22nd quarter of growth and raised its full year outlook as it prepares for its biggest international expansion yet.
The publicly listed beauty company’s net sales increased 50 percent to $324.5 million in the first quarter of its fiscal year 2025. Wall Street had forecast an average of $302.6 million.
Over the quarter, E.l.f. Cosmetics surpassed L’Oréal to become the second largest color cosmetics brand in the U.S. with a 12 percent share, according to NielsenIQ.
E.l.f. Skin made inroads too, becoming the no. 9 mass skin care brand in U.S with a 2 percent share, NielsenIQ data showed.
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The company’s net income dipped slightly year-over-year in the quarter, to $47.6 million, down from $52.9 million a year earlier. Diluted earnings per share were 81 cents, down from 93 cents.
On an adjusted basis, net income was $64.3 million in the three months ended June 30, up from $62.9 million. Adjusted diluted earnings per share were $1.10, the same as a year earlier, but way above Wall Street estimates of 84 cents.
“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,” said Tarang Amin, E.l.f. Beauty’s chairman and chief executive officer. “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 also raised its full year outlook for sales to a range of between $1.28 billion to $1.3 billion, from the previous forecast of $1.23 billion to $1.25 billion. It passed the significant $1 billion in sales milestone in its 2024 fiscal year.
Adjusted diluted earnings per share are now on track to come in at between $3.36 to $3.41, up from the prior estimate of $3.20 to $3.25.
After launching in Italy and the Netherlands, E.l.f. announced Thursday that it plans to enter Germany via drug store chain Rossmann’s 1,200 doors, its biggest international expansion to date.
“Germany’s the largest cosmetics and market in in Europe,” said Amin in an interview. “For us, I’d say 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 Douglass 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.”
E.l.f. will also launch in Sephora Mexico later this year as the lines between drugstore and high-end beauty products continue to blur.
Amin told WWD that more international expansion, a top priority for the company, will be announced throughout the year.
“We’re seeing this pent up consumer demand, mainly because of our strength in social,” he said. “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.”
Naturium, meanwhile, which E.l.f. recently acquired, is in the middle of a nationwide rollout into Ulta Beauty. That, according to Amin, should be completed in the next few days.
