On August 8th, California-based cosmetics brand e.l.f. Beauty, Inc. announced a strong start to fiscal year 2025, reporting a 50% increase in first-quarter sales, reaching $324.5 million.
The company expanded its market share by 260 basis points, marking the 22nd consecutive quarter of growth in both sales and market share. Although quarterly net income slightly decreased from $52.9 million in the same period last year to $47.6 million, adjusted net income rose to $64.3 million, surpassing the $62.9 million recorded in the previous year. Additionally, adjusted diluted earnings per share (EPS) remained at $1.10, significantly exceeding Wall Street’s forecast of 84 cents.
This substantial growth was driven by strong performance across both retail and e-commerce channels, favorable foreign exchange impacts, lower transportation costs, and strategic pricing adjustments in international markets.
Following these strong first-quarter results, e.l.f. Beauty has revised its annual sales forecast upward, from the previous range of $1.23 billion to $1.25 billion to a new range of $1.28 billion to $1.3 billion. The company now expects:
- Net sales: Between $1.28 billion and $1.3 billion (previously $1.23 billion to $1.25 billion).
- Adjusted EBITDA: Between $297 million and $301 million (previously $285 million to $289 million).
- Adjusted net income: Between $198 million and $201 million (previously $187 million to $191 million).
- Adjusted diluted EPS: Between $3.36 and $3.41 (previously $3.20 to $3.25).
Tarang Amin, Chairman and CEO of e.l.f. Beauty, expressed confidence in the company’s strategic direction, stating, “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. We continue to make progress across color cosmetics, skin care and international and believe our unique areas of advantage will fuel our ability to win in fiscal 2025 and beyond.”
The company also announced plans to enter the German market, building on its successes in Italy and the Netherlands. e.l.f. Beauty will partner with Rossmann, the country’s second-largest drugstore chain, to expand into 1,200 stores, marking its largest international expansion to date. In addition, e.l.f. Beauty plans to launch in Mexico through Sephora, aiming to enhance its global brand recognition further.
Last year, e.l.f. Beauty acquired the beauty brand Naturium for $355 million. Naturium products are currently being rolled out nationwide in Ulta Beauty stores, which is expected to further strengthen e.l.f. Beauty’s product portfolio and expand its market share in the U.S.