E.l.f. Beauty has lifted its full-year outlook.
For the three months ended Sept. 30, E.l.f. reported net sales came in at $215.5 million, up 76 percent year-over-year and marking its 19th consecutive quarter of growth.
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Adjusted net income was $47.1 million, while adjusted diluted earnings per share were 82 cents, beating Wall Street forecasts.
“We continue to deliver exceptional, consistent, category-leading sales growth,” said Tarang Amin, E.l.f. Beauty’s chairman and chief executive officer. “In the second quarter, we grew net sales by 76 percent and category share by 330 basis points, marking our 19th consecutive quarter of growth in each. As we look ahead, the significant whitespace we see across color cosmetics, skin care and international gives us confidence that we are in the early innings of unlocking the full potential we see for E.l.f. Beauty.”
And while Estée Lauder downgraded its outlook Wednesday, E.l.f. Beauty is moving in the opposite direction.
The mass beauty company upgraded its 2024 outlook to reflect an expected 55 percent to 57 percent year-over-year increase in net sales. It previously forecast a 37 percent to 39 percent increase jump.
The new outlook now includes Naturium, which E.l.f. recently paid $355 million for, in one of the most talked about beauty deals of the year.
E.l.f. expects Naturium to contribute approximately $48 million in net sales, approximately $9 million in adjusted EBITDA and approximately 4 cents in adjusted EPS on a fully diluted basis in fiscal 2024.
Amin told WWD he’s open to more M&A opportunities, but any potential targets would need a similar growth story to Naturium.
On Naturium, Amin said: “One of the things that led us to that acquisition was not only tremendous growth rate but the team. They have an entire team entity with real skin care expertise so we definitely feel we are going to learn things from Naturium that can be applied to E.l.f. skin and vice versa. It is highly complementary to E.l.f. Skin. They have tremendous expertise in formulation, in education, their engagement model and then in turn over capabilities from both the distribution and being able to ramp up their marketing efforts.”
E.l.f. Skin has a 1.6 percent market share and Amin believes it has “significant runway.”
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