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E.l.f. Beauty Keeps Sales Momentum High

The company's fiscal sales beat projections.

E.l.f. Beauty’s sales continue to climb.

For the quarter ending March 31, the parent company of E.l.f., W3ll People and Keys Soulcare posted 13 percent year-over-year growth in net sales to $105.1 million. For the fiscal year ending on the same date, sales grew 23.3 percent from the prior-year period, to $392.2 million, beating projections. It’s the 13th consecutive quarter that the company has posted net sales gains. Net income for the quarter was $1.6 million, and $21.8 million for the year.

Tarang Amin, E.l.f. Beauty’s chief executive officer, credits the growth to momentum across brands, with makeup on a strong rebound and no signs of abatement in skin care.

“E.l.f. Skin grew 18 percent in a category that only grew eight percent, and we had our first real viral hit on Keys Soulcare with our illuminating serum,” Amin said. “Equally, W3ll People went into its first set of Ulta doors as part of its clean initiative. What makes me the most excited is we have a tremendous amount of white space.”

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Keys Soulcare, the E.l.f.-owned beauty brand made in partnership with Alicia Keys, also debuted skin care-color hybrids in May, including tinted lip balms and a brow gel. In March, E.l.f. Cosmetics collaborated with Dunkin’ Donuts on eye shadows and a lip scrub.

“The strength of our innovation is one of the things that’s allowed us to build market share,” Amin said.

The company has yet to feel inflationary headwinds, Amin said, and the company forecasts net sales growth of between 10 and 12 percent for fiscal 2023, projecting sales between $432 million and $440 million.

“I’m quite bullish on color cosmetics and skin care. Even in some of the retailer results, while they had mixed results, they talked about the strength they’re seeing in beauty,” Amin said. “Consumers are ready to get out there. I’m actually bullish on the category, even moreso how we’re positioned within it.”

E.l.f. even raised prices on two-thirds of its stock keeping units, given an increase in shipping prices. “That’s gone better than expected,” Amin said. “In the last eight weeks, our consumption has been up over 20 percent, and up over 30 percent in the last four weeks. We made a conscious decision to keep the lowest-price items at the same price. That dual strategy has worked really well.”

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