Eyes, lips, profits… E.l.f. shares jumped 20% yesterday after the budget makeup brand posted head-turning results. Its sales grew nearly 80% last quarter, marking 17 straight quarters of growth, and flying past Wall Street’s forecasts. E.l.f rose to drugstore fame with its variety of affordable makeup (picture: $7 glosses, $10 primer). Now it’s ranked the #4 largest mass cosmetics brands in the US, topping OG icons like Revlon and CoverGirl.
Mixed foundation: Last month rival Estée Lauder disappointed as makeup and skincare sales fell. L’Oreal saw growth thanks to a rebound in the US and Europe.
Glowy outlook: E.l.f’s CEO said its “winning formula” of value helped it issue what could be its strongest growth forecast ever.
Coffee gloss and glitter bombs… E.l.f. has long been a staple of the beauty industry’s dupe-economy, and gained even more fame thanks to buzzy collabs and social-media reviews (#GRWM). FYI: E.l.f has been tagged on TikTok nearly 7B+ times. Skincare took center stage during lockdowns, but after folks started going out again, “Euphoria”-style color cosmetics rebounded. Meanwhile, more “fresh face”-focused brands (cough, Glossier) are losing their shine. For the first time since 2020, teenagers are spending more on makeup than skincare.
It’s the inside that counts… E.l.f.’s no-frills packaging is the opposite of flashier (but pricier) competitors. Instead, E.l.f. has leaned into quirky collabs with brands like Chipotle and Dunkin’ and word-of-mouth from TikTok beauty gurus. Its affordable prices allow teens to experiment with makeup trends without breaking the bank. Now E.l.f has become Gen Z’s #1 beauty brand, topping cult faves like Selena Gomez’s Rare Beauty and Rihanna’s Fenty Beauty.