e.l.f. beauty ipo

E.l.f. Beauty Inc. showed continued sales growth and higher expenses in its first quarterly report as a public company.

The firm’s bottom line sank as expenses rose. E.l.f.’s net losses widened to $2.4 million from $748,000 a year earlier.

The company said that investment in its long-term growth pushed selling, general and administrative expenses to $32.5 million in the third quarter, from $19.5 million.

Sales for the three months ended Sept. 30 rose 10.9 percent to $56.3 million from $50.8 million.

Tarang Amin, chairman and chief executive officer, noted the results reflected: “Double-digit growth in net sales, significant gross margin expansion and progress toward our mission to make luxurious beauty accessible for all women to play beautifully. This performance is especially gratifying as we drove sales growth on top of the launch to 6,900 CVS stores in the third quarter of 2015.”

E.l.f. growth plans include adding new customers and expanding in existing outlets, driving sales and margin with innovation and moving into new categories.

See More: E.l.f. Beauty Stock Ends First Day of Trading Up

In September, E.l.f. and its shareholders sold a combined 9.5 million shares at $17 each. The firm used its portion of the proceeds to pay repay a $40 million term loan.

The stock closed at $26.50 after its first day of trading in September, and closed at $25.92 Thursday.

Although the company is now in the public market, some dealmakers believe it’s not destined to be there for long and could eventually prove to be a good acquisition for a consumer products company looking to expand in mass beauty.

Just over half of the firm’s sales came from Wal-Mart Stores Inc. and Target Corp. last year, according to financial records.