E.L.F. Beauty sales jump 18% in 2017 as the company continues expansion

By

Robin Driver

Published
Mar 1, 2018

US-based international cosmetics brand E.L.F. Beauty reported its fourth quarter and full year 2017 results on Tuesday, showing strong growth in both sales and income.
 

The company’s net sales increased 18% in fiscal 2017 compared to the prior year, rising to $269.9. Gross margin also expanded over 300 basis points to 61% from 58% in fiscal 2016.
 
Net income for the year reached $33.5 million, compared to a net loss attributable to stockholders of $497.5 million in the previous year. Adjusted EBITDA rose 15% to $61.6 million compared to $53.8 million in fiscal 2016.

In the fourth quarter, net sales increased 7% compared to the same period in the previous year, reaching $81.6 million, despite a slight dip in gross margin.

Net income in the period rose to $21.5 million, compared to $6.6 million in Q4 2016, while adjusted EBITDA increased 2% from $22.1 million in the prior year to $22.7 million.
 
“This performance demonstrates the strength of the E.L.F. brand, driven by our mission to make luxurious beauty accessible for all”, stated E.L.F. Chairman and CEO Tarang Amin. “The year included many noteworthy accomplishments, including a three-point increase in unaided awareness, the introduction of 128 new products, continued expansion with leading retailers, and investments in the team and infrastructure to enable future growth. We remain excited about our opportunities as we begin fiscal 2018 and expect another year of significant accomplishments toward our long-term goals.”
 
E.L.F. Beauty was founded as an e-commerce business in 2004 and has since developed into a multi-channel brand through the opening of branded stores and the establishment of distribution partnerships with leading national retailers including Target, Walmart and Ulta Beauty.
 
The company aims to make luxury beauty products more accessible and is currently one of the fastest growing beauty brands in the US as it continues to expand its product range and further develop its distribution network.
 
E.L.F. predicts net sales and EBITDA growth of 6-8% for 2018, having previously announced in January that it expected to see a consistent annual growth rate in net sales and adjusted EBITDA of 10-15% between 2016 and 2019.
 
“We see meaningful future whitespace ahead, despite continued category headwinds assumed in 2018”, stated Amin.