E.l.f. Beauty Inc. hiked fiscal year sales and adjusted profit expectations as inflation-weary customers drive demand for its budget-conscious brand.
E.l.f. Beauty now expects sales of as much as $802 million, up from $705 million to $720 million previously. Adjusted earnings per share are now expected to reach $2.19 to $2.22. Both forecasts exceed Wall Street estimates.
Chief executive officer Tarang Amin said he expects the beauty brand to double its US business in the next decade.
“We’re better positioned than most given the value proposition that we offer,” Amin said in an interview.
This prediction comes ahead of the reintroduction of student loan payments, a key budgetary concern for E.l.f.’s primary Gen-Z consumer base. Amin said the brand is “well positioned” to handle overall customer pullback because of its affordable prices.
Amin credits the digital channel for driving the brand’s growth, with most of the company’s advertising money spent online.
The Oakland, California-based company has also collaborated with social media influencers such as Mikayla Nigoueira on TikTok and YouTube. In following digital trends, Amin said the brand increased its skincare business by 127 percent for the most recent quarter ending June 30.
“I’m even more bullish about the future,” he said.
Shares have more than doubled so far this year as of Tuesday’s close. They gained 14 percent in after-market trading.
By Cristela Jones and Diana Carolina Bravo
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