e.l.f. Beauty Delivers Strong Earnings, Surpasses $1 Billion in Net Sales
e.l.f. Beauty, Inc. (ELF), the popular cosmetics company targeting millennial and Gen Z customers, saw its stock soar above a key technical level on Thursday. The rally came after the company reported a surprise earnings gain for its fiscal fourth quarter, despite providing a weaker-than-expected outlook for 2025.
In the earnings report, e.l.f. Beauty announced it had delivered over $1 billion in net sales for fiscal 2024, up a staggering 77% year-over-year. The company's flagship e.l.f. Cosmetics brand gained market share for the fifth consecutive year, further solidifying its position as a leading affordable beauty brand.
Surprise Q4 Earnings Beat
For the fourth quarter specifically, e.l.f. Beauty beat Wall Street's earnings estimates, though the company has not yet provided the exact figures. Analysts highlighted the "meaningful" sales beat in Q4 as a key driver behind the stock's rally.
2025 Outlook
Looking ahead to fiscal 2025, e.l.f. Beauty provided guidance that fell short of expectations. The company forecasts net sales to increase by 20-22% compared to fiscal 2024, with adjusted EBITDA of $285-289 million and adjusted net income of $187-191 million.
However, analysts view e.l.f. Beauty's 2025 outlook as likely conservative given the company's disciplined management team and strong sales performance so far this quarter. The underwhelming guidance appears to be the result of cautious projections rather than any underlying weakness in the business.
Stock Rally and Future Outlook
Prior to the earnings beat, e.l.f. Beauty's stock had been sliding since March but has now reclaimed the 50-day moving average for the first time since then. The rally reflects renewed confidence in the cosmetics company's ability to continue capturing market share and driving impressive top-line growth.
While e.l.f. Beauty has not announced the exact date for its next earnings release, investors will be closely watching for further updates from the millennial-favorite beauty brand. The company's ability to maintain momentum and deliver on its ambitious growth targets will be key to sustaining the current stock rally.