e.l.f. Beauty has posted double-digit sales growth for Q1 2023, with the GenZ-focused brand’s results surpassing pre-pandemic levels for the first time.
Net sales increased by 26% to US$122.6m for the three-month period ended 30 June 2022, driven by strong retail performance in the US and internationally.
e.l.f. raised the prices for two thirds of its skus in response to rising transportation costs in mid-March, which also contributed to the sales boost.
Adjusted net income was $21.1m, with adjusted EBITDA rising by 46% to $31.7m when compared with a year earlier.
The Power Grip Primer, Big Mood Mascara, Glossy Lip Stain and Camo Powder Foundation were highlighted as the brand’s key product performers for the quarter.
e.l.f.Skin in particular saw a 17% boost in consumption during Q1, with the brand preparing to further invest in its burgeoning skin care category in the coming months.
It overhauled the packaging for its skin care range in Q1 with a new blue colour scheme, which now includes more consumer information about the product.
The Holy Hydration Makeup Melting Cleansing Balm was the best selling skin care product for the quarter.
“I am proud of the e.l.f. Beauty team for achieving our fourteenth consecutive quarter of net sales growth,” said Tarang Amin, e.l.f. Beauty's Chairman and CEO.
“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.”
e.l.f. will also continue to focus on video game and metaverse collaborations for its product launches.
In July the brand released Game Up, a limited edition eight-piece cosmetics collection.
The range included a Game Up Eye Win Eyeliner Pot and Game Up Shield Me Setting Mist ($10), a lightweight setting spray that sets make-up and helps to absorb blue light.
In classic video games style, each of the products contained a secret code that can be redeemed for rewards.
e.l.f. has now updated its full-year 2023 guidance to be in the range of 14-16% due to the strong performance, up from the 10-12% year-over-year increase it had predicted previously.
The brand is expecting double-digit topline growth for the remaining quarters of the financial year.
“We are continuing to lean into our strengths – our core value proposition, innovation engine, and ability to attract and engage consumers – and are pleased to raise our fiscal 2023,” added Amin.
