e.l.f. Beauty has achieved remarkable success in the latest quarter, with its profit tripling and its gross margin and market share expanding significantly. Importantly, these achievements were made without raising prices for its beauty products.
The well-known cosmetics firm, recognized for its makeup sold in drugstores, announced a net income of $53 million, or 93 cents per share, for the fiscal first quarter that ended on June 30. This represents a substantial increase from $14.5 million, or 27 cents per share, recorded during the same period last year.
By excluding one-time items, the company's earnings per share reached an impressive $1.10, surpassing analysts' expectations of 43 cents per share.
Notably, sales soared by a remarkable 76% to reach $216.3 million, demonstrating substantial market share gains of 260 basis points. The market had anticipated more conservative sales figures of $184.6 million.
Chief Executive Tarang Amin highlighted the pent-up demand for self-expression and the desire to go out, stating, "There's pent-up demand for being out and expressing yourself."
e.l.f.'s gross margin also experienced significant growth, rising approximately 280 basis points to 71% during the quarter. This achievement is particularly impressive considering the company's selling, general, and administrative expenses increased by 49% to reach $91.9 million.
