ELF Beauty Inc. filed On Tuesday, it released its full-year sales and profit forecasts and said it gained market share in the fiscal third quarter — a trend it said could accelerate in coming years through a greater push toward retailers with its lower-priced products. Cosmetics and skin care products.
The cosmetics brand said it expects sales for fiscal 2024 to reach $980 million to $990 million, up from a previous forecast of $896 million to $906 million. The company now expects full-year adjusted earnings per share to range from $2.84 to $2.87, compared to the previous forecast of $2.47 to $2.50.
Shares rose 3.5% after hours.
On ELF Beauty's ELF,
Within the company's color cosmetics segment, its market share has expanded and could further double over the next few years, CEO Tarang Amin said during a phone call on Tuesday. He noted that such products outperformed others in terms of popularity on the shelves at Target Corp. TGT,
Long time customer.
“We are focused on replicating our success at Target across other major retailers and are making significant progress toward this ambition,” Amin said.
ELF Beauty's bullish outlook comes as consumers continue to engage with higher-priced items compared to before the pandemic. While analysts believe demand for beauty products will persist despite inflation, retailers like Ulta Beauty Inc.
It has noticed that competitive delistings have increased in the past year.
ELF products typically sell for about $6, Amin said on the call, compared to $9 for older cosmetics brands and more than $20 for prestige offerings.
ELF Beauty manufactures ELF cosmetics and skin care products under its SKIN line at retailers such as Target and Walmart Inc. WMT,
And olta. Last year, the company bought Naturium, a skin care brand, for $355 million and partnered with actress Jennifer Coolidge to promote a new lip range.
The company on Tuesday reported third-quarter adjusted earnings per share of 74 cents, above the FactSet forecast of 57 cents. Revenues of $270.9 million were above estimates of $238.9 million.
