Elf Cosmetics overtakes L'Oréal. 💄💅

• $ELF (-0,85 %)
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  Elf Beauty's net sales in the 1st quarter of financial year 2025 reach 320 million US dollars, an increase of 50% compared to the previous year

Yesterday, Elf Beauty released its first quarter of fiscal year 2025, reporting a 50% increase in net sales to $324.5 million in the first quarter of fiscal year 2025, exceeding Wall Street's expectations of $302.6 million. This growth has made Elf Cosmetics the second largest color cosmetics brand in the US, according to NielsenIQ, overtaking L'Oréal with a 12% market share.

Elf Skin also made remarkable progress, securing 9th place among mass skin care brands in the US with a market share of 2%. However, the company's net profit fell slightly year-on-year from 52.9 million to 47.6 million dollars, with diluted earnings per share falling from 93 to 81 cents. On an adjusted basis, net income rose from 62.9 million dollars to 64.3 million dollars, with adjusted diluted earnings per share remaining stable at 1.10 dollars, well above Wall Street's estimate of 84 cents.

CEO Tarang Amin highlighted the company's strong start to the fiscal year, with net revenue growth of 50% and a market share gain of 260 basis points in the first quarter. As a result, Elf Beauty raised its full-year revenue outlook to a range of $1.28 billion to $1.3 billion, up from previous guidance of $1.23 billion to $1.25 billion. Adjusted diluted earnings per share are also expected to increase and now range between 3.36 and 3.41 dollars, compared to the previous estimate of 3.20 to 3.25 dollars.

According to Elf Beauty's earnings report, the company's international net sales increased by a whopping 91% in the first quarter of fiscal 2024. The company is preparing for its largest international expansion to date and plans to enter the German market through a partnership with drugstore chain Rossmann, which will make Elf products available in 1,200 stores. This expansion follows successful launches in Italy and the Netherlands, where strong local partnerships have been key. In addition, Elf will launch in Sephora Mexico later this year as the distinction between drugstore and high-end beauty products becomes increasingly blurred.

Further international expansions are expected throughout the year, driven by strong consumer demand, particularly through social media engagement. Meanwhile, Naturium, a brand recently acquired by Elf, is in the process of a nationwide launch at Ulta Beauty, which is expected to be completed shortly.