Q3 results reveal strong growth as company expands into more stores
e.l.f. has reported double-digit growth for the three months ending 30 September 2016.
Sales increased 11% to $56.3m in the third quarter, driven by growth in national retailers. The cosmetics brands recently launched in 6,900 CVS stores.
We continue to engage some of the best consumers in beauty by delivering high quality cosmetics at an extraordinary value.
However, this also increased the company’s expenses to 55% of revenue, compared to 38% in the same period in 2015.
In a conference call, Tarang Amin, Chairman and CEO at e.l.f., said that the company was “pleased” with its performance and said that it was making progress towards it goal of making “luxurious beauty accessible for all women”.
He added: “We continue to engage some of the best consumers in beauty by delivering high quality cosmetics at an extraordinary value.”
In the nine months to 30 September, sales increased 22% to $153.1m and gross margin increased by 500 basis points to 57%.
The results follow e.l.f.’s IPO in September, which saw shares debut at $17 each. Stockholders sold 5,583,33 of common stock and the company sold 4,00,00 shares of common stock, resulting in net proceeds of $63.2m.
e.l.f. also recently launched Beauty Scape, a social campaign working with 50 influencers in the beauty sphere online. Amin said: ‘Through this event, we created an experience that featured the best if e.l.f.”
The company said that the programme resulted in a 25% increase in its number of followers on Instagram and helped it reach a total of 53 million followers across all of its social media platforms.