e.l.f. Beauty is still sitting pretty this quarter
…while some of its biggest rivals continue to struggle.
e.l.f. Beauty, a makeup brand beloved by Gen Z and cost-conscious consumers alike, has now posted net-sales growth for 23 quarters in a row, while revenues in the wider cosmetic industry — even at some of the biggest names in the game — continue to slow.
In its most recent report, the Californian company revealed that net revenues soared 40% year over year to reach $301 million, and smashed Wall Street expectations on earnings per share, too. Perhaps most interesting, however, was e.l.f.’s stunning 91% growth in international sales — a pain point for other beauty retailers, dragged down by waning demand, particularly in China.
When compared to Estée Lauder, shares of which saw the biggest single-day drop on record last week, e.l.f.’s growth looks positively glowing. Estée Lauder’s sales fell 4% in the most recent quarter, as cheaper local competitors take a bigger slice of sales in China, once its biggest market.
Dupe that!
Despite e.l.f. being into its 20th year, the beauty brand has seen revenues really take off over the last three years, as their low-cost “dupes” and alternatives to some of the biggest products on the market work their way into young customers’ makeup bags.
Though Gen Z’s penchant for all things e.l.f. is well known — the company routinely tops the cosmetic category of Piper Sandler’s “Taking Stock With Teens” survey — CEO Tarang Amin recently touted the company’s “multigenerational appeal,” revealing that it’s now also the most purchased brand amongst Gen Alpha and millennials.
Ultimately, e.l.f.’s response to a shrinking beauty industry is simple: “dupe that” and make it affordable. It seems to be working.
