e.l.f. Beauty raises 2024 outlook as first quarter sales surge 76%

By Amanda Pauley | Published: 3-Aug-2023

The Gen Z drugstore brand has lifted its 2024 sales forecast due to ‘strong’ Q1 demand for its budget-friendly skin care and colour cosmetics

e.l.f. Beauty has raised its full-year outlook for 2024 after exceeding expectations in Q1. 

The drugstore beauty brand’s sales increased 76% to US$216.3m for the three months until 30 June 2023, in comparison to $122.6m the previous year. 

The Putty Primer maker has now adjusted its full-year 2024 outlook, expecting net sales to increase 37% to 39%.

This will be in the region of $792m to $802m, up from the previous expectation of $705m to $720m.

e.l.f. Beauty’s gross margin in the first quarter also increased 280 basis points to 71%.

This was driven by “favourable” FX impacts and cost savings, as well as lower inventory adjustments and better transportation costs. 

“Partially offset by the costs associated with retailer activity and space expansion,” read a statement by the brand. 

This is the company’s 18th consecutive quarter of delivering both net sales growth and market share gains. 

“We are one of only five publicly traded consumer companies out of 274 that have grown for 18 straight quarters, and averaged at least 20% sales growth per quarter over that period,” said e.l.f. Beauty Chair and CEO Tarang Amin. 

e.l.f. Beauty’s “terrific start” to the fiscal year 2024 is said to be driven by “strength” in its retailer and e-commerce channels.

It has also experienced a significant boost in demand for colour cosmetics in both the UK and Canada.  

The brand outpaced colour cosmetics’ category growth by times ten in the UK and by times three in Canada, fuelling market share gains in each. 

It is now the number six colour cosmetics brand in each of these markets, reported e.l.f. Beauty. 

Delivering extensions in its popular franchises, rather than launching one-off products, is also behind e.l.f. Beauty’s significant sales growth. 

The company’s four largest franchises – Camo, Putty, Halo Glow and Power Grip – have all grown year-on-year due to innovation within each, said the brand. 

“In Q1, we continued to fuel the Putty franchise with the launch of Liquid Poreless Putty Primer and Putty Color Correcting Eye Brightener, extending the Putty franchise into the eye category for the first time,” explained Amin. 

e.l.f. Beauty also performed well in skin care, growing 127% in tracked channels. 

“In January we launched Suntouchable Whoa Glow SPF30 and it quickly rose to become one of our best-selling skin care skus,” added Amin.  

e.l.f. Beauty is not the only company to announce positive financial results lately.

Hermès has reported a boost in cosmetic sales, as the Birkin bag maker announces a rebound in demand for luxury goods.

L’Oréal sales for the first half of 2023 also leapt 13.3%, buoyed by a strong performance from its Dermatological Beauty business. 

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