E.l.f. Beauty reported significant revenue growth in both fiscal 2024 and the fourth quarter ended March 31. The retailer exceeded Wall Street expectations but shared lower-than-expected guidance for fiscal 2025.

“Fiscal 2024 marked our strongest year of net sales growth on record, a continuation of the exceptional, consistent, category-leading growth we’ve delivered,” said CEO Tarang Amin in a written statement. “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 across cosmetics, skin care and international markets,” she continued.

E.l.f. is No. 681 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Digital Commerce 360 categorizes e.l.f. in the Health & Beauty category, which was the fastest-growing category in 2023. E.l.f was the 14th fastest-growing retailer in the entire Top 1000 last year, according to Digital Commerce 360 research.

E.l.f. Q4 and 2024 results

In Q4, e.l.f net sales increased 71% to $321.1 million. That was about $30 million higher than the $292.6 million expected by analysts. The sales growth was driven by strength in both retail and online sales, e.l.f. said. Net income was $30.8 million. Q4 was also the 21st consecutive quarter of net sales and market share growth, it said. 

Full-year net sales increased 77% to $1.02 billion, the retailer said, due to the same trends that boosted Q4 results. Net income was $127.7 million.

The retailer, which sells skin care and cosmetics products, broke down results by category. Color cosmetics sales grew 30% in Q4. That increase was an improvement from a year ago when the category had already grown 18% from the previous year. The overall cosmetics category, meanwhile, declined 3%. E.l.f. is “bullish” on the category, Amin said.

E.l.f. also outperformed the industry in the skin care category, it said. The retailer’s skin care sales grew 38% in Q4 compared to industry growth of 2%.

Growth in both parts of the business was partially due to the retailer’s low price point, it said. The average price point for an e.l.f. product is $6.50, compared to $9.50 for other mass cosmetics brands and more than $20 for luxury brands.

“Our value proposition underpins our strong unit growth,” Amin said.

E.l.f. Q4 online sales

Q4 digital sales grew 70% year over year, chief financial officer Mandy Fields stated. Online channels drove 22% of total sales, compared to 18% of sales in the year-ago period. 

Online sales grew 90% year over year for the full year, she added.

E.l.f’s loyalty members are essential to the brand’s digital growth, Fields said. She noted that members make up about 80% of sales on elfcosmetics.com. The Beauty Squad Loyalty Program has 4.5 million members and is growing 30% year over year. That momentum extends to the mobile app, too.

“We’re seeing terrific engagement on our e.l.f. mobile app, which now boasts a 4.8-star rating and recently surpassed over 2 million downloads,” Fields said.

E.l.f. also credited popularity with young consumers and successful marketing with its successful quarter. A Q4 collaboration with Liquid Death led to a triple-digit increase in traffic to e.l.f.’s website and 12 billion impressions, Amin said.

The beauty retailer also saw success from experimenting with different formats and technology, including an Apple Vision Pro app and a partnership with Roblox.

E.l.f 2025 guidance

The retailer shared expectations of a 20%-22% increase in net sales in fiscal 2025. That’s well below the 71% year-over-year increase in fiscal 2024. 

However, Fields pointed out that e.l.f. also started fiscal 2024 predicting about 20% growth. A cautious outlook is part of the company’s philosophy, she explained. 

“But what I will say is that it gives you a little bit of insight into our guidance philosophy and what has worked well for us over these last five years, taking it one quarter at a time, which is why we indicated that we do love the momentum that we’re seeing out of Q1 and feel great about our overall guidance range at this point,” she told investors.

“We’re not implying any slowdown,” Amit said. She explained that e.l.f. won’t provide a higher guidance until Q1 results come in.

e.l.f. Beauty earnings

For the fiscal fourth quarter ended March 31, 2024, e.l.f. Beauty reported:

• Net sales increased 71% to $321.1 million.
• Digital sales grew 70% year over year. 
• Online sales drove 22% of total sales.

For the fiscal year ended March 31, 2024, e.l.f. Beauty reported:

• Net sales increased 77% to $1.02 billion.
• Net income was $127.7 million, up from $61.5 million in the year-ago period. 
• Online sales grew 90% year over year.

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