The cosmetics firm, e.l.f. Beauty, has reported higher sales, profit, and margin expansion for the first quarter, leading to an increase in their sales growth outlook for the fiscal year ending March 31, 2024.
Robust Financial Performance
e.l.f. Beauty now anticipates sales between $792 million and $802 million for the current fiscal year, surpassing their previous guidance of $705 million to $720 million. This revised forecast exceeds analysts’ expectations of $730 million in sales.
Earnings per Share Surge
The company expects its earnings per share, excluding one-time items, to reach $2.19 to $2.22, compared to the earlier range of $1.73 to $1.76 a share. Analysts surveyed by FactSet had estimated earnings per share of $1.83.
Increased Marketing Investment
To sustain its growth trajectory, e.l.f. Beauty plans to allocate 22% to 24% of net sales towards marketing expenses, an increase from 22% in the previous year. Chief Executive Tarang Amin emphasized that this decision is driven by successful results, as the company attracts a larger customer base.
“We’re doing that mainly because it’s working,” Amin stated. “We’re bringing in many more customers.”
Expanding Global Presence
Capitalizing on its positive brand reception, e.l.f. Beauty is seeking to expand its reach in Canada, the U.K., India, and primarily Europe. Amin expressed confidence in the company’s future potential and emphasized their ambitious goals.
“We feel we have so much more room to grow and a lot to accomplish,” Amin commented, highlighting their plans to establish a team in the U.K. for European expansion.