E.l.f. Beauty raises full year sales and earnings outlook

Net sales increased 49 percent to 146.5 million dollars in the third quarter at e.l.f. Beauty, primarily driven by strength in both the retailer and e-commerce channels.

The company’s updated outlook for fiscal 2023 reflects an expected 38-39 percent increase in net sales in the range of 541 to 545 million dollars compared to an expected 22-24 percent increase previously. Adjusted net income is expected to increase in the range of 75.5 to 77 million dollars and adjusted diluted earnings per share in the range of 1.37 to 1.40 dollars.

"We delivered a terrific third quarter - growing our net sales by 49 percent and expanding our market share by 150 basis points, according to Nielsen,” said Tarang Amin, e.l.f. Beauty's chairman and chief executive officer.

Highlights of e.l.f. Beauty’s Q3 and nine month results

Third quarter gross margin increased approximately 180 basis points to 67 percent. Net income was 19.1 million dollars on a GAAP basis, while adjusted net income was 26.8 million dollars.

Diluted earnings per share for the quarter were 34 cents on a GAAP basis, while adjusted diluted earnings per share were 48 cents. Adjusted EBITDA reached 36.6 million dollars, or 25 percent of net sales, up 69 percent year over year.

For the nine months ended December 31, 2022, net sales increased 36 percent to 391.5 million dollars.

Gross margin increased approximately 255 basis points to 67 percent, net income was 45.3 million dollars on a GAAP basis, while adjusted net income was 68 million dollars.

Diluted earnings per share were 82 cents on a GAAP basis, while adjusted diluted earnings per share were 1.24 dollars. Adjusted EBITDA for the period was 95.5 million dollars or 24 percent of net sales, up 54 percent year over year.