e.l.f. Beauty has increased its 2023 annual forecast following strong Q2 results.
The drugstore beauty brand attributed price savvy consumer spending, along with price increases, to the fiscal outlook boost, marking its 15th consecutive quarter of growth.
The company is now expecting full-year sales between US$478m and $486m versus the previous forecast of $448m and $456m.
Net sales rose 33% to $122.3m during the three months ended 30 September, with the brand’s Power Grip Primer its best-selling SKU.
This was “driven by strength in both our retailer and e-commerce channels,” said the brand, with engagement of its trends on social media up 75% in this period.
CEO of e.l.f. Beauty, Tarang Amin, described that the brand’s value proposition during the cost of living crisis helped to secure strong sales.
“We are benefiting from a trade down as consumers opt for our brand over prestige options,” he said.
“The average price point for e.l.f. Beauty products are $5 while it is around $22 for prestige brands.”
Power Grip Primer was the brand's best-selling SKU in Q2
Increased business momentum is also behind the new sales forecast.
Incremental space gains with US multinational corporations Walmart and Target in spring 2023 and UK beauty retailer Superdrug in autumn 2023 have also been baked into the outlook.
The Californian-based company’s gross margin increased 190 basis points to 65% during the same period.
"In the second quarter, [we] were the fastest growing top five colour cosmetics brand,” said Amin.
“We expanded our market share by 115 basis points, according to Nielsen.
“We believe our value proposition, innovation engine, and ability to attract and engage consumers will continue to fuel our growth."
e.l.f. Beauty released its first-ever Impact Report earlier this year, which detailed the company’s ESG initiatives for 2022.
It was praised by sustainability experts for setting a new standard in these reports, with a "shift in communications" towards the consumer.
