E.l.f. Beauty enjoying strong growth
OAKLAND, Calif. — E.l.f. Beauty has struck gold by appealing to millennials, makeup enthusiasts and the Hispanic population. The company, which markets beauty products to all woman and whose products are in CVS, Target, Walmart and its own stores, saw net revenues increase 17% year over year in its fiscal fourth quarter. Adjusted net income rose by 36% year over year.
“Our first strategy is to build a great brand [and] e.l.f is an authentic brand that young diverse makeup enthusiasts love,” CEO Tarang Amin said Wednesday during the company’s earnings conference call. “Relative to the overall cosmetics category, we are twice as developed among millennial, over developed among Hispanics and have strong appeal was make-up enthusiasts. The consumers are driving categories. We know how to engage these consumers and they are our best advocates.”
Amin also credited its Beauty Scape influencer program for a strong fourth quarter. “We hosted a special e.l.f holiday celebration in Los Angeles with influencers or select base under their authentic ties to e.l.f. The event reached a combined audience of 76 million and helped us cross the 2 million follower remarks on Instagram. Through these activations we believe we can further build awareness and deepen engagement with our consumers.”
E.l.f’s loyalty program, Beauty Squad, was yet another sign of growth. “During the fourth quarter, we more than doubled enrollment and now have over a 190,000 Beauty Squad members. On average, these consumers shop elfcosmetics.com 30% more often and purchase 50% more during each visit versus non-members. We are enthusiastic about the potential of Beauty Squad to build deeper relationships with our consumers.”
2017 could see even bigger growth, with net sales expected to increase by 24% to 28%, Amin concluded.