E.l.f. Beauty’s Q1 sales jump, raises outlook

First quarter net sales at e.l.f. Beauty increased 76 percent to 216.3 million dollars, primarily driven by strength in both retailer and e-commerce channels.

The company’s updated outlook for fiscal 2024 reflects an expected 37 to 39 percent increase in net sales to 792 dollars to 802 million dollars compared to the previous expectation of 22 to 24 percent increase.

“We are off to a terrific start in our new fiscal year with net sales growth of 76 percent and market share gains of 260 basis points in Q1. This marks our 18th consecutive quarter of delivering both net sales growth and market share gains,” said Tarang Amin, e.l.f. Beauty's chairman and chief executive officer.

The company’s gross margin increased approximately 280 basis points to 71 percent, while net income was 53 million dollars on a GAAP basis and adjusted net income was 62.9 million dollars.

The company’s diluted earnings per share were 93 cents on a GAAP basis, adjusted diluted earnings per share were 1.10 dollars and adjusted EBITDA was 74.3 million dollars or 34 percent of net sales, up 135 percent year over year.

The company now expects adjusted EBITDA to range between 171 to 174 million dollars, adjusted net income in the range of 125 to 127 million dollars and adjusted diluted earnings per share between 2.19 to 2.22 dollars.

The company's multi-brand portfolio includes e.l.f. Cosmetics, e.l.f. Skin, clean-beauty brand Well People and Keys Soulcare, a lifestyle beauty brand created with Alicia Keys.