ELF Beauty Reports 33% Net Sales Growth in Q2 2023

Net sales growth for ELF Beauty increased 33% to $122.3 million in Q2 2023 for the three and six months ended September 30, according to the company. 

 

The company attributes the growth to strength in both retailer and e-commerce channels. 

 

“I am proud of the ELF Beauty team for delivering our 15th consecutive quarter of net sales growth, with Q2 up 33%,” said Tarang Amin, Elf Beauty's chairman and CEO. “In the second quarter, Elf was the fastest growing top five color cosmetics brand and we expanded our market share by 115 basis points, according to Nielsen. We believe our value proposition, innovation engine, and ability to attract and engage consumers will continue to fuel our growth.”

 

Gross margin increased approximately 190 basis points to 65%, primarily driven by price increases, cost savings and product mix, partially offset by inventory adjustments and higher transportation costs.

 

Selling, general and administrative expenses (SG&A) increased $13.7 million to $64.2 million, or 52% of net sales. Adjusted SG&A increased $11.0 million to $56.2 million, or 46% of net sales. The increase was primarily due to an increase in compensation and benefits, marketing and digital spend and operations costs.

 

Net income was $11.7 million on a GAAP basis. Adjusted net income was $20.1 million. Adjusted EBITDA was $27.3 million, or 22% of net sales, up 47% year over year.