After strong Q1, E.l.f. Beauty raises full year outlook

First quarter net sales at E.l.f. Beauty increased 50 percent to 324.5 million dollars, driven by strength in both retailer and e-commerce channels.

Raising its full year forecast after a strong first quarter, the company said it now expects a 25to 27 percent increase in net sales to 1,280 to 1,300 million dollars.

Adjusted EBITDA is expected to range between 297 to 301 million dollars, adjusted net income between 198 to 201 million dollars and adjusted diluted earnings per share in the range of 3.36 to 3.41 dollars.

Commenting on the first quarter trading, Tarang Amin, E.l.f. Beauty’s chairman and CEO said in a statement: “This 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’s gross margin for the first quarter increased approximately 80 basis points to 71 percent, net income was 47.6 million dollars on a GAAP basis, while adjusted net income was 64.3 million dollars. Diluted earnings per share were 81 cents on a GAAP basis and adjusted diluted earnings per share were 1.10 dollars.

Adjusted EBITDA for the quarter was 77.4 million dollars or 24 percent of net sales, up 4 percent year over year.