Popular US beauty brand e.l.f. has released its fiscal results for the three- and nine-month periods of 2023 through the end of last year, confirming that “in Q3, we grew net sales by 85% and market share by 305 basis points, marking our 20th consecutive quarter of growth in each,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer in a company press release.
Following what Amin describes as “exceptional, consistent, category-leading growth,” the company has updated its fiscal outlook for 2024 to reflect “an expected 69-71% year-over-year increase in net sales, as compared to an expected 55-57% increase previously,” the release confirmed.
Q3 2023 verses Q3 2022
The business quarter was exceptionally notable for the brand when comparing 2023 to 2022, the release confirmed. In addition to a net sales increase of 85% to $270.9 million, which was “primarily driven by strength in both retailer and e-commerce channels” said e.l.f.’s release, the brand’s gross margin also increased to 71%, or by 350 base points, and was “primarily driven by favorable foreign exchange impacts, improved transportation costs, cost savings and mix” the release confirmed.
Additionally, the company’s net income in Q3 2023 was $26.9 million on a generally accepted accounting principles (GAAP) basis, or $42.9 million adjusted net income, which excludes “expense or income related to stock-based compensation, other non-recurring items, impairment of equity investment, loss on extinguishment of debt, amortization of acquired intangible assets and the tax impact of the foregoing adjustments,” stated the release.”
Therefore, the release continued, the company’s “diluted earnings per share were $0.46 on a GAAP basis,” and “adjusted diluted earnings per share (diluted earnings per share calculated with adjusted net income excluding the items identified in the reconciliation table below) were $0.74.”
Nine-month period of 2023 verses 2022
In the nine months leading up to the end of 2023 compared to the same period in 2022, the company saw considerable and steady growth, including a net sales increase of 80% to $702.8 million and a gross margin increase of approximately 400 basis points. “Net income was $113.1 million on a GAAP basis,” the company’s release confirmed, and “adjusted net income was $152.9 million.”
As a result, e.l.f.’s “diluted earnings per share were $1.97 on a GAAP basis,” and its “adjusted diluted earnings per share were $2.66,” the release said.
At the end of 2023, e.l.f. confirmed that its balance sheet reflected “$72.7 million in cash and cash equivalents and $164.4 million of long-term debt and finance lease obligations, as compared to $87.0 million in cash and cash equivalents and $62.2 million of long-term debt and finance lease obligations as of December 31, 2022,” stated the company’s release.
One of the main drivers of the company’s continued reported growth was its October 2023 acquisition of high-performance skin care brand Natrium, a deal which closed for “$333 million in a combination of cash and Company stock,” and “furthers the Company’s mission to make the best of beauty accessible to every eye, lip, face and skin concern,” the release concluded.
