E.L.F. Beauty Shares Dip After Q1 Results

E.l.f. Beauty, Inc. ELF shares are trading lower after the company reported its first-quarter financial results Thursday. Here's a look at the details from the report. 

The Details: E.l.f. Beauty reported quarterly earnings of $1.10 per share, which beat the analyst consensus estimate of 84 cents by 30.95%.

Quarterly sales came in at $324.477 million, beating the consensus estimate by 6.93% and representing an increase of 50% year-over-year. E.l.f. said the increase in sales was primarily driven by strength in both retailer and e-commerce channels.

Gross margin increased approximately 80 basis points to 71%, primarily driven by favorable foreign exchange impacts, lower transportation costs, price increases in international markets, cost savings and mix, partially offset by inventory adjustments. E.l.f. cosmetics gained 260 basis points of market share during the quarter.

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“We are off to a strong start this fiscal year, delivering 50% net sales growth and 260 basis points of market share gains in Q1,” said Tarang Amin, E.l.f. Beauty’s CEO.

“This marked our 22nd consecutive quarter of both net sales growth and market share gains–putting e.l.f. Beauty in a rarified group of high-growth consumer companies. We continue to make progress across color cosmetics, skincare and international and believe our unique areas of advantage will fuel our ability to win in fiscal 2025 and beyond.”

Outlook: E.l.f. Beauty raised its fiscal year outlook to include an expected 25% to 27% year-over-year increase in net sales, as compared to an expected 20%-22% increase previously. The company now sees full-year sales in a range of $1.28 billion to $1.3 billion.

ELF Price Action: According to Benzinga Pro, E.l.f. Beauty shares are down 5.09% after-hours at $178.39 at the time of publication Thursday.

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Image: Courtesy of E.l.f. Beauty, Inc.