Billion-dollar Business E.l.f Beauty Is Only Just Beginning

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E.l.f. beauty celebrates its 20th anniversary while surpassing $1 billion in sales for the first time. The company is eyeing international expansion as the next step in growth.

Wall Street and Gen Z don’t often find common ground, but there is one thing they seem to agree on: Both sides love E.l.f.brand among young consumers, according to Piper Sandler’s 2024 Taking Stock With Teens Survey. It’s also one of the top-performing companies on the New York Stock Exchange, notching its 22nd consecutive quarter of growth and surpassing $1 billion in sales for the first time in its history.

That mission has not changed. “There’s a lot in there, but we believe in every word of that vision,” he said, during a wide-ranging interview with WWD Beauty Inc in which he shared how the company plans on not just maintaining the momentum — but accelerating it. In a note to investors, Ashley Helgans, an analyst at Jefferies, noted the potential impact of E.l.f.’s launch in the Netherlands, writing, “The footprint of these two retailers is significant. The Netherlands mass color cosmetics market in 2022 was worth $394 million and mass skin $547 million.”“Germany’s the largest cosmetics and market in in Europe,” said Amin. “For us, I’d say the approach is more than what country you pick.

“When we entered Douglas Italy, we asked them, ‘How much do you want us to customize this brand for the Italian consumer?’ They told us, ‘not much. Italians love hot American brands,’ and that’s exactly what we found. By the day we launched, there were lines all the way down the block.” “Skin care is a bigger category globally than color cosmetics so we see that as huge potential for us as we continue to expand the E.l.f. Skin portfolio, as well as continue to roll out Naturium globally,” said Amin.

As for whether E.l.f. is up for making any more acquisitions, the company is game, but would need to find a target with the same caliber as Naturium, which was profitable from Day One. That doesn’t mean that incubation is off the table, though, with E.l.f. previously incubating Keys Soulcare with singer Alicia Keys. But for now, acquisition looks like the more attractive option.

Analysts have also stated that there is much opportunity at other retailers in the U.S., too, with shelf space gains at Walmart and CVS, where the brand is under-penetrated.

 

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