e.l.f. Beauty has raised its 2023 full year forecast after reporting double-digit sales growth across all key categories.
The drugstore beauty brand saw net sales soar 49% year-over-year in the three months ended 31 December 2022, reaching US$146.5m.
E-commerce and retail partners were cited as crucial drivers behind the brand’s sixteenth consecutive quarter of reported net sales growth.
Based on this business momentum, e.l.f. Beauty has updated its outlook for fiscal 2023.
It is now expecting an 38% to 39% year-over-year increase in net sales, compared to the previous forecast of 22% to 24%.
Net sales are now anticipated to reach $541m to $545m for the year.
It also expects an adjusted EBITDA of between $110.5m to $112m, compared to $93.5m and $95m previously.
"We delivered a terrific third quarter, growing our net sales by 49% and expanding our market share by 150 basis points, according to Nielsen,” said Tarang Amin, CEO and Chairman of e.l.f. Beauty.
“As we look ahead, we are excited about the potential we see as we continue to make the best of beauty accessible to every eye, lip, face and skin concern."
Price increases implemented in March 2022, cost savings and product mix helped the Californian-based company’s gross margin increase 180 basis points to 67%,
This was “partially offset by inventory adjustments and costs related to space gains and spring shelf resets”, the company said.
e.l.f. Beauty’s market share also increased by 150 basis points, increasing its rank to the number-four brand in the colour cosmetics market.
As of December 31, 2022, the company had $87m in cash and cash equivalents and $62.2m in long term debt and finance lease obligations.
e.l.f. Beauty last updated its 2023 annual forecasting in November 2022 following strong Q2 results.
It also recently announced a new digital campaign with singer-songwriter Meghan Trainor.