The cosmetics brand is ‘focused on replicating our success at Target across other key retailers,’ according to CEO Tarang Amin
E.L.F. Beauty Inc. on Tuesday raised its full-year sales and profit outlook and said it had gained market share in its fiscal third quarter — a trend it believes it could accelerate in the years ahead via a bigger push into retailers with its lower-priced cosmetics and skincare products.
The cosmetics brand said it expects sales for its 2024 fiscal year to come in at $980 million to $990 million, up from previous expectations of $896 million to $906 million. The company now anticipates full-year adjusted earnings per share of $2.84 to $2.87, compared with a prior outlook of $2.47 to $2.50.
It also reported third-quarter adjusted earnings per share of 74 cents, above analyst forecasts of 57 cents, per FactSet data. Revenue of $270.9 million for the quarter was above estimates of $238.9 million.
Shares were up 3.5% after hours.
On E.L.F. Beauty’s ELF, +2.11% earnings call Tuesday, Chief Executive Tarang Amin said that within the company’s color-cosmetics segment, its market share had expanded and could further double over the next few years. He noted that such products had topped others in popularity on shelves at Target Corp. TGT, +1.48%, a longtime customer.
“We’re focused on replicating our success at Target across other key retailers and are making great progress toward that ambition,” Amin said. Other retailers that carry E.L.F.’s cosmetics and skincare products include Walmart Inc. WMT, +0.68% and Ulta Beauty Inc. ULTA, -0.08%
E.L.F. Beauty’s bullish forecast comes as consumers continue to grapple with higher-priced goods when compared to before the pandemic. While analysts have argued that demand for beauty products would endure despite inflation, retailers like Ulta have noted that competitive markdowns increased last year.
Amin said on the call that E.L.F.’s products typically sell for around $6, compared with $9 for older mass-cosmetics brands and more than $20 for prestige offerings.
The company last year bought Naturium, a skincare brand, for $355 million and partnered with actress Jennifer Coolidge to promote a new lip kit.