Yesterday, E.l.f. Beauty released its Q1 of FY2025. In the first quarter of its fiscal year 2025, the company saw net sales increase by 50% to $324.5 million, surpassing Wall Street’s expectations of $302.6 million. This growth has propelled E.l.f. Cosmetics to become the second-largest color cosmetics brand in the U.S., overtaking L’Oréal with a 12% market share, according to NielsenIQ.
E.l.f. Skin also made notable progress, securing the 9th spot among mass skincare brands in the U.S. with a 2% market share. However, the company’s net income slightly decreased year-over-year to $47.6 million from $52.9 million, with diluted earnings per share falling to 81 cents from 93 cents. On an adjusted basis, net income rose to $64.3 million, up from $62.9 million, with adjusted diluted earnings per share remaining steady at $1.10, significantly above Wall Street’s estimate of 84 cents.
CEO Tarang Amin highlighted the company’s strong start to the fiscal year, with 50% net sales growth and 260 basis points of market share gains in Q1. As a result, E.l.f. Beauty has updated its full-year sales outlook to a range of $1.28 billion to $1.3 billion, up from the previous forecast of $1.23 billion to $1.25 billion. Adjusted diluted earnings per share are also projected to increase, now expected to be between $3.36 and $3.41, up from the prior estimate of $3.20 to $3.25.
According to E.l.f. Beauty’s earnings report, the company’s international net sales grew by a whopping 91% in Q1 of fiscal 2024. The company is preparing for its largest international expansion yet, with plans to enter the German market through a partnership with drugstore chain Rossmann, which will see E.l.f. products available in 1,200 stores. This expansion follows successful launches in Italy and the Netherlands, where strong local partnerships have been key. Additionally, E.l.f. will launch in Sephora Mexico later this year, as the distinction between drugstore and high-end beauty products continues to blur.
Further international expansions are expected throughout the year, driven by strong consumer demand, particularly through social media engagement. Meanwhile, Naturium, a recent acquisition by E.l.f., is in the process of a nationwide rollout into Ulta Beauty, expected to be completed shortly.
