E.l.f Beauty lifts outlook as sales soar
E.l.f Beauty has reported a 76% rise in sales to £176 million ($215.5 million) for the second quarter ending 30 September 2023, primarily driven by strength in both retailer and e-commerce channels.
Gross margin increased 570 basis points to 71%, boosted by lower inventory adjustments, cost savings and mix, improved transportation costs and favourable foreign exchange impacts, partially offset by costs associated with retailer activity and space expansion.
Net income totalled £27 million ($33.3 million), whilst adjusted EBITDA was up 122% year-over-year to £49 million ($60.4 million).
For the first half, E.l.f Beauty shared the following results:
- Net sales up 76% to £353 million ($431.8 million).
- Gross margin up 425 basis points to 71%.
- Net income of £70 million ($86.2 million).
- Adjusted EBITDA up 129% to £110 million ($134.7 million).
Looking ahead, the company has raised its outlook for FY24. It expects sales to increase 55-57%, compared a rise of 37-39% previously.
The outlook includes the addition of Naturium, which was recently acquired by E.l.f. Beauty. It anticipates the skincare brand to contribute approximately £39 million ($48 million) in sales for FY24.
Tarang Amin, Chairman and CEO at E.l.f. Beauty, said: "We continue to deliver exceptional, consistent, category-leading sales growth.
"As we look ahead, the significant whitespace we see across colour cosmetics, skincare and international gives us confidence that we are in the early innings of unlocking the full potential we see for E.l.f. Beauty."
