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Jun 30, 2024

e.l.f. Q1 2025 Earnings Report

Delivered 50% net sales growth, gained 260 basis points of market share, and raised fiscal 2025 outlook.

Key Takeaways

e.l.f. Beauty reported a strong start to fiscal year 2025, with a 50% increase in net sales and a 260 basis point gain in market share during Q1. The company's 22nd consecutive quarter of net sales growth and market share gains places it among high-growth consumer companies. The company is also raising its fiscal 2025 outlook.

Net sales increased by 50% to $324.5 million, driven by strength in both retailer and e-commerce channels.

Gross margin increased approximately 80 basis points to 71%, primarily due to favorable foreign exchange impacts, lower transportation costs, and price increases in international markets.

Net income was $47.6 million, with diluted earnings per share at $0.81 on a GAAP basis.

The company is raising its fiscal 2025 outlook and expects a 25-27% year-over-year increase in net sales.

Total Revenue
$324M
Previous year: $216M
+50.0%
EPS
$1.1
Previous year: $1.1
+0.0%
Adjusted EBITDA
$77.4M
Gross Profit
$231M
Previous year: $153M
+51.6%
Cash and Equivalents
$109M
Previous year: $143M
-23.5%
Free Cash Flow
$495K
Previous year: $22.7M
-97.8%
Total Assets
$1.2B
Previous year: $658M
+83.1%

e.l.f.

e.l.f.

Forward Guidance

The company is providing an updated outlook for fiscal 2025, expecting a 25-27% year-over-year increase in net sales.

Positive Outlook

  • Net sales are expected to increase by 25-27% year-over-year.
  • Net sales are projected to be $1,280-1,300 million.
  • Adjusted EBITDA is expected to be $297-301 million.
  • Adjusted effective tax rate is projected at 20-21%.
  • Adjusted net income is expected to be $198-201 million.