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The company is taking over the Palm Tree Club & Hotel in Miami for several days during the Art Basel art fair. The event, branded as Hote.l.f., is designed to mix the brand's makeup and skincare products with music and culture to reach new customers. This is a standard part of the company's marketing playbook, which relies on viral social media moments and high-profile events rather than traditional television ads. While these takeovers help keep the brand relevant with younger shoppers, they are routine marketing expenses and do not change the company's financial outlook.
Source: PRNewsWire
After e.l.f. Beauty reported its November results, we updated our fair value. We lowered our rating from Buy to Watch. We have added the move into the hair care category and the impact of one-time government tariff refunds to what we track. We also raised our projection for annual sales growth to 25% through 2028.
e.l.f. Beauty reported another quarter of high growth, with sales reaching about 521 million dollars. This was much higher than the 470 million dollars analysts expected. The company earned $1.21 per share, more than double what it earned in the same period last year. Profit margins also improved to 71 percent, which is the portion of each sale left over after paying for the products themselves.
Management raised its sales growth target for the full year to between 22 and 24 percent. This performance shows the brand is still winning over customers with its strategy of selling high-quality makeup at much lower prices than luxury rivals. The stock rose about 6 percent on the news, as the company continues to take market share in the U.S. and expand its reach in international markets.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Results for the latest quarter are due today. Analysts expect the company to report about 470 million dollars in revenue and earnings of roughly 60 cents per share. Beyond the headline numbers, the focus remains on how well the brand is growing outside the United States and whether its newer skincare lines are gaining traction. These two areas are the main engines for growth as the company tries to move beyond its core makeup business.
The company is scheduled to share its latest quarterly results on Wednesday, November 4. Analysts expect earnings of about 59 cents per share on sales of roughly 470 million dollars. This report will be an important check on whether the brand is still winning market share and if its newer skincare lines are growing as fast as its makeup business.
Management consistently sets a bar they can clear by a wide margin. These massive beats show the business is outrunning even its own high expectations as it takes more market share.
| Expectation | |
|---|---|
| EPS | $0.87 |
| Revenue | $544M |
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