Overview

• E.L.F. Beauty raised its full-year sales outlook for the second quarter in a row, after earning $215.5 million, an increase of 76% YoY, and beating market expectations. The company announced an increase in operating profit to $56.6 million, surging by +123% YoY.
• The company's recent acquisition of Naturium for $355 million, including cash and $72 million of E.L.F. stock, has successfully doubled the skincare contribution to sales from 9% to 18%. This move has placed the company in a strong position to further its international expansion, with a team of 30+ people in the UK driving the overseas growth. The company entered Douglas in Italy with great success and looks forward to entering other markets.
• E.L.F. sees a growing trend among consumers for color cosmetics and skincare products. Consumption in tracked channels increased by 51% and 129% YoY, respectively. The skincare arm is expected to raise approximately $48 million in net sales. E.L.F. now ranks number 14 in mass skincare, up from 19 a year ago, with its market share gaining 80 basis points to 1.6%.
• The Gen Z-marketed brand has maintained its digital sales' growth by 75% and saw a 157% YoY rise in international sales. Meanwhile, its skincare line experienced a jump of over 100% in sales, winning the hearts of younger consumers. Yet, E.L.F. will refrain from entering China despite its focus on international expansion.
• E.L.F. has successfully converted Gen Z consumers and is now targeting Gen X. The company reported 19 consecutive quarters of net sales growth and forecasts an expected 55-57% YoY increase in net sales for fiscal 2024, reflecting organic growth and the acquisition of Naturium.