E.l.f. Beauty FY23 Q4 Net Sales Soar 78% to $187 Million

E.l.f. Beauty announces fourth quarter and full fiscal 2023 results. The company’s net sales in FY23 Q4 increased 78% to $187.4 million, primarily driven by strength across the retailer and e-commerce channels.

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E.l.f. Beauty has released its financial results for the fourth quarter and full fiscal year 2023. The company experienced a significant increase in net sales during the fourth quarter of 2023, with a growth of 78% to reach $187.4 million. This was mainly due to the company's strong performance across its retailer and e-commerce channels.

E.l.f. Beauty's GAAP net income in Q4 was $16.2 million, while its adjusted net income (which excludes the items specified in the reconciliation table provided) was $23.8 million.

The company's gross margin in Q4 increased by around 180 basis points to reach 67%. This growth was largely due to a combination of factors, including price increases, cost savings, and an optimized product mix. However, these gains were partially offset by the costs associated with inventory adjustments and expenses related to space gains and Spring shelf resets.

In the full fiscal 2023 year, e.l.f. Beauty's net sales grew by 48% to reach $578.8 million, and this was largely due to the strong performance of its retailer and e-commerce channels. The company's GAAP net income in fiscal 2023 year was $61.5 million, while its adjusted net income was $91.8 million.

For fiscal 2024, e.l.f. Beauty is projecting its net sales for the fiscal year 2024 to be in the range of $705 million to $720 million with an expected 22-24% increase.

“Our outstanding results in fiscal 2023 underscore the power of the e.l.f. brand and the world class team at e.l.f. Beauty,” said Tarang Amin, e.l.f. Beauty's Chairman and Chief Executive Officer. "We grew net sales by 78% in Q4, marking our seventeenth consecutive quarter of net sales growth. We gained 270 basis points of market share in the quarter and increased our ranking to the number three U.S. Mass Cosmetics brand for the first time, according to Nielsen. As we look ahead, we believe we are still in the early innings of unlocking the full potential we see for e.l.f. Beauty.”