e.l.f. Beauty, Inc. shares opened 15% higher after its first-quarter results beat expectations and the company raised its full-year guidance.
For the three months ended June 30, 2023, the cosmetics brand reported a 76% jump in net sales to $216.3 million, which it said was driven by the strength of its retailer and e-commerce channels.
Analysts, on average, had expected sales of $184.6 million, according to FactSet.
Its adjusted earnings per share (EPS) was $1.10, far higher than the Street forecast of $0.57.
The company also noted that it gained 260 basis points of market share during the quarter.
“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,” e.l.f. CEO Tarang Amin highlighted in a statement.
“As we look ahead, we believe we are in the early innings of unlocking the full potential we see for e.l.f. Beauty and are raising our fiscal 2024 outlook to reflect our continued momentum.”
The company now expects a 37% to 39% increase in its net sales year-over-year for fiscal 2024, up from its prior expectation of a 22% to 24% increase.
It forecast net sales in the range of $792 million to $802 million, up from its prior guidance range of $705 million to $720 million.
It expects adjusted EPS between $2.19 and $2.22, compared to its prior forecast range of $1.73 to $1.76.
Prior to e.l.f.’s 1Q report, the Street had forecast revenue of $730 million and adjusted EPS of $1.83 for 3Q.
e.l.f. shares traded up 15.4% at US$134.41 mid-morning on Wednesday.
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