E.L.F. Beauty updates full year outlook after Q3 sales rise 49%

E.L.F. Beauty has revealed a 49% increase in net sales to £118.5 million ($146.5 million) for the third quarter ending 31 December 2022, driven by strength in both its retailer and ecommerce channels.

The owner of E.L.F. Cosmetics and Keys Soulcare reported that net income grew to £15.4 million ($19.1 million) against £5 million ($6.2 million) last year.

Gross profit totalled £79.8 million ($98.7 million), compared to £52 million ($64.3 million) in the third quarter of 2021. Gross margin increased approximately 180 basis points to 67%, boosted by price increases, cost savings and product mix, partially offset by inventory adjustments and higher transportation costs.

For the nine months to 31 December 2022, E.L.F. Beauty shared the following results:

• Net sales up 36% to £316.9 million ($391.5 million).
• Net income of £36.6 million ($45.3 million), compared to £16.3 million ($20.2 million) in 2021.
• Gross profit of £211.4 million ($261.2 million), compared to £149.1 million ($184.2 million) in 2021.
• Gross margin up approximately 255 basis points to 67%.
• Adjusted EBITDA of £77.3 million ($95.5 million).

The group has updated its outlook for FY23, reflecting an expected 38-39% increase in net sales to £437-441 million ($541-545 million), as compared to an expected 22-24% increase to £386-393 million ($478-486 million) previously.

Tarang Amin, Chairman and CEO of E.L.F. Beauty, said: “This quarter marked our 16th consecutive quarter of net sales growth, reflecting the continued strong execution by the E.L.F. Beauty team. As we look ahead, we're excited about the potential we see as we continue to make the best of beauty accessible to every eye, lip, face and skin concern."