E.l.f. Beauty raises outlook as Q1 sales rise

E.l.f. Beauty, owner of e.l.f. Cosmetics and Keys Soulcare, has announced its financial results for the first quarter ending 30 June 2022, revealing a 26% increase in net sales to $122.6 million.

The group's gross margin increased approximately 390 basis points to 68%. This was driven by price increases, cost savings and product mix, which helped to mitigate the impact of higher transportation costs in the quarter.

For the first quarter, E.l.f. Beauty also shared the following results:

• Adjusted net income of $21.1 million.
• Adjusted EBITDA of $31.7 million.
• $72.2 million in cash and cash equivalents.
• $89.7 million in long-term debt and finance lease obligations.

Looking ahead, e.l.f. Beauty anticipates a 14-16% year-over-year increase in net sales, compared to an expected 10-12% year-over-year increase previously. This equates to expected net sales between $448 million and $456 million.

Tarang Amin, Chairman and CEO at E.l.f. Beauty, said: “I am proud of the e.l.f. Beauty team for achieving our fourteenth consecutive quarter of net sales growth. We continue to significantly outperform our competition.

"In the first quarter, we were the fastest growing top five colour cosmetics brand and expanded our market share by 120 basis points, according to Nielsen. We are continuing to lean into our strength, our core value proposition, innovation engine and ability to attract and engage consumers. We are pleased to raise our Fiscal 2023 outlook.”