E.l.f. Beauty Says No to $10M Kardashian Deals… And Still Sees 40% Growth ($301 Million Revenue)
Look, I don’t know much about makeup, but my credit card statement sure as heck flinches every time my wife makes a Sephora run. That’s why, when I tell you E.l.f. Beauty is absolutely crushing it right now, you better believe it’s a bigger deal than finding out your crypto-obsessed cousin was actually right about something at a Thanksgiving dinner.
I might not know the difference between concealer and foundation (aren’t they the same thing?), but I do know when a company is printing money faster than my boy JPow during a pandemic. We’re talking numbers so thicc, they make Kim K’s Instagram filters look subtle.
This past quarter, E.l.f. pulled in $301 million in revenue. That’s up from $216 million last year and way above Wall Street’s estimate of $286 million. But here’s what really sticks out… They absolutely annihilated expectations. Earnings per share? 77 cents, when analysts were crossing their fingers for 43.
And they’re not just winning in the U.S. Oh no. International sales shot up by a ridiculous 91%. This comes at the same time that other beauty giants like Estée Lauder are struggling harder than I do to understand why every teenager is wearing the same cargo pants that I used to get made fun of for wearing. Estée’s sales actually dropped 4% last quarter, mostly because their once-golden goose, China, is now flocking to cheaper local brands.
What’s E.l.f.’s secret? Two words: affordable dupes. They’ve made a name for themselves by offering low-cost alternatives to high-end beauty products. Want that $50 foundation look but only have $5? E.l.f.’s got your back. And Gen Z loves it. In fact, they’ve crowned E.l.f. as their top beauty brand in surveys. But the love doesn’t stop there. Millennials and even Gen Alpha (yeah, the kids who think Millennials are ancient) are all aboard the E.l.f. train.
Oh and E.l.f. just teamed up with Dollar General, which might sound about as glamorous as your local DMV, but hear me out. Dollar General has more locations (over 20,000) than you have unread emails, especially in small towns. This move plants E.l.f. right in the hands of budget-minded cheap shoppers everywhere.
Now, let’s talk about why all this makes E.l.f. an intriguing stock pick. For starters, their consistent growth (23 consecutive quarters of net sales increases) is practically unheard of in the beauty industry right now. Even as the broader cosmetics market keeps shrinking like a cheap cotton sweater in the wash, E.l.f.just keeps expanding. (I know that shares are down 30% over the last 6 months, but all signs point to growth over the next year).
They seemed to have figured it out: affordable products, witty marketing, and a massive fan base that spans generations. On the other hand, Estee Lauder is busy shelling out insane modeling fees (think $10 million for Kendall Jenner) to stay relevant, and yet their sales still dropped 4% last quarter. (I guess supermodels aren’t the guaranteed growth strategy they thought?) E.l.f., on the other hand, knows how to get those international sales up without emptying the bank on celebrity ads. That’s what we call sustainable growth.
On top of that, E.l.f.’s partnership with Dollar General opens the door to even more revenue streams. With a strong presence in value-driven retail and plans to exceed $1.3 billion in revenue for fiscal 2025, the company’s growth trajectory looks solid.
If you’re looking for a stock with momentum, proven resilience, and a knack for turning viral trends into dollars, E.l.f. might just be worth adding to your portfolio. Sure, makeup might not be your thing, but watching your investments grow—Now that’s a look everyone can get behind.
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Stock.News has positions in E.L.f., Meta, and Dollar General mentioned in article.