ELF’s Net Sales Grow 76% in Q1 2024

Net sales for ELF Beauty grew 76% in Q1 2024 for the three months ended June 30, 2023.

 

The company also achieved market share gains of 260 basis points in Q1.

 

“This marks our 18th consecutive quarter of delivering both net sales growth and market share gains,” said Chairman and CEO Tarang Amin. “We are one of only five publicly traded consumer companies out of 274 that has grown for 18 straight quarters and averaged at least 20% sales growth per quarter over that period.”

 

The increase in net sales was primarily driven by strength in both the company’s retailer and e-commerce channels. Gross margin increased approximately 280 basis points to 71%, primarily driven by favorable FX impacts, margin accretive mix and cost savings, lower inventory adjustments and improved transportation costs, partially offset by the costs associated with retailer activity and space expansion.

 

Selling, general and administrative expenses (SG&A) increased $30.4 million to $91.9 million, or 42% of net sales. Adjusted SG&A increased $29.4 million to $84.4 million, or 39% of net sales. The increase in SG&A dollars was primarily due to an increase in marketing and digital spend, operations costs, compensation and benefits, retail fixturing and visual merchandising costs.

 

Adjusted EBITDA was $74.3 million, or 34% of net sales, up 135% year over year.