e.l.f. Beauty CEO hails ‘holy grail’ product range as half-year sales soar

By Alessandro Carrara | Published: 2-Nov-2023

The Gen Z focused brand significantly increased its sales outlook for the remainder of the year to be between 55% and 57%

e.l.f. Beauty sales have skyrocketed in its half-year 2024 results.

Net sales increased by 76% to US$431.8m for the six months ended 30 September, with shares in the company jumping by 9% in early trading on Wednesday.

Second quarter sales also increased by 76% to $215.5m, marking the business’ 19th consecutive quarter of growth.

Tarang Amin, e.l.f. Beauty's Chairman and CEO, said the brand’s innovation pipeline has “never been stronger.

“We continue to have these holy grails that consumers can’t seem to get enough of,” he added.

“Our ability to shine a light on those holy grails through our marketing has been a winning formula and continues to propel our top line.”

The brand, popular with Gen Z beauty shoppers, said sales were also driven by strong growth across its retail and e-commerce channels.

Digital sales in particular increased by 75% during Q2, bolstered by a 90% rise in the number of transactions made through the brand’s Beauty Squad loyalty scheme.

An increase in marketing spend also supported the company’s sales growth during the half-year period.

e.l.f. Beauty has now significantly increased its sales outlook for the remainder of the year to be between 55% and 57%, up from the 37% to 39% rise it posted in the previous quarter.

Mandy Fields, senior VP and CFO, said the raised guidance was based on the strong momentum and demand for the brand this year.

She added there is a substantial amount of “white space” for e.l.f. Beauty heading in 2024, particularly from its untrackled sales channels.

“We have international, digital and Ulta, which fall into those untracked channels, and some of the strongest performance is coming from those [segments],” said Fields.

The sales boom comes after e.l.f. Beauty acquired US skin care brand Naturium in a US$355m deal, with the transaction being completed on 4 October. 

Naturium is expected to contribute approximately $48m in sales to e.l.f. Beauty for the remainder of 2024 financial year.

“We continue to deliver exceptional, consistent, category-leading sales growth,” said Amin.

“As we look ahead, the significant whitespace we see across colour cosmetics, skin care and international brands gives us confidence that we are in the early innings of unlocking the full potential we see for e.l.f. Beauty.”

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