E.l.f. Beauty‘s growth story is still going.
The cosmetics retailer on Thursday blew past quarterly estimates again, posting a 50% gain in sales.
The eyes, lip, face beauty giant’s sales soared to $324.5 million in its fiscal first quarter, leading it to raise its full year guidance. That increase follows a staggering 76% jump in the year ago quarter.
CEO Tarang Amin told CNBC the company saw growth across its categories. He added that the company’s Bronzing Drops quickly became a best seller on the company’s website after their launch during the quarter.
Here’s how the cosmetics company performed compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.10 adjusted vs. 84 cents expected
- Revenue: $324 million vs. $305 million expected
The company’s reported net income for the three-month period that ended June 30 was $47.6 million, or 81 cents per share, compared with $53 million, or 93 cents per share, a year earlier.
Sales rose to $324.5 million, up about 50% from $216.3 million a year earlier.
Following quarter after quarter of outsized growth, Wall Street has come to expect a lot from E.l.f. Beauty. Though it raised its guidance Thursday, the outlook still fell flat after such a big first quarter beat.
For fiscal 2025, E.l.f. now expects sales between $1.28 billion and $1.3 billion, compared to its previous outlook of $1.23 billion and $1.25 billion. Analysts had expected sales guidance of $1.3 billion, according to LSEG.
The company now anticipates its adjusted net income will be between $198 million and $201 million, compared to a previous outlook of between $187 million and $191 million. E.l.f. expects adjusted earnings per share to be between $3.36 and $3.41, compared to previous guidance of $3.20 to $3.25. Analysts had expected earnings of $3.42 per share, according to LSEG.
Shares fell about 6% in extended trading.
When it reported fiscal 2024 results in May, E.l.f. disappointed investors with an outlook that came in below expectations. Sentiment later turned around after its finance chief Mandy Fields suggested that the company tends to issue conservative guidance.
“Last year, we started our guidance at 22% to 24% range, ended the year at 77%,” Fields told analysts at the time. “I’m not saying that we’re promising 77% this year for sure. But what I will say is that gives you a little bit of insight into our guidance philosophy.”
On Thursday, Amin told CNBC that Fields takes a “balanced” approach to guidance and prefers to take things one quarter at a time.
“If you look at our history over the last five years, these 22 quarters, we typically guide lower than where we eventually come out,” said Amin. “We never want to get ahead of ourselves and overall, the strategy has worked just great … we’re going to take you through what we’re seeing quarter by quarter, and hopefully we continue to kind of beat that.”
He added that he isn’t concerned about a consumer pullback in the…
Read More: E.l.f Beauty (ELF) earnings Q1 2025