By E.l.f. Beauty, a prominent cosmetics company, has announced impressive sales growth in the latest quarter following a successful holiday season. As a result, the company has further increased its outlook for the year in light of its viral product launches.
In the fiscal third-quarter, which ended on December 31, E.l.f. Beauty achieved a net profit of $26.9 million, or 46 cents per share. This compares favorably to the net profit of $19.1 million, or 34 cents per share, recorded in the same period the previous year. Factoring out one-time items, the company’s earnings per share reached 74 cents, surpassing analysts’ expectations of 52 cents as reported by FactSet.
E.l.f. Beauty experienced a substantial surge in sales, reaching $270.9 million, marking an 85% increase. This growth can be attributed to the company’s expanding skincare category, which has been bolstered by the recent acquisition of Naturium. Wall Street analysts had predicted sales of $238.9 million.
Having effectively executed its expansion plans thus far, E.l.f. Beauty has successfully more than doubled its market share over the past two years. To support its continued global growth, the company is actively hiring new employees.
E.l.f. Beauty’s Chief Executive, Tarang Amin, expressed his confidence in the company’s future succession plans: “We’ve been very disciplined and continue to invest in the business and hire at the right pace,” he said in an interview. Amin also emphasized that the company possesses a “very strong balance sheet” that enables it to acquire additional brands.
Amin, who has led E.l.f. for approximately a decade, confirmed that he has no intention of leaving his position any time soon.
Looking ahead to the fiscal year ending in March, E.l.f. Beauty anticipates a further jump in sales to a range of $980 million to $990 million. This projection exceeds the prior guidance of up to $906 million and surpasses analysts’ expectations of $927.1 million.
Furthermore, the company expects adjusted earnings per share to reach $2.84 to $2.87, up from the previously estimated range of $2.47 to $2.50. This surpasses analysts’ expectations of $2.78 per share.
Overall, E.l.f. Beauty is experiencing significant growth and has positioned itself for continued success in the future.
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