(Bloomberg) -- Elf Beauty Inc. posted quarterly sales that exceeded even the most bullish Wall Street expectations and boosted its outlook for the fiscal year as the affordable makeup and skincare brand attracts cost-conscious consumers. The company reported sales of $324.
5 million for the three months ended June 30, up about 1% from the prior quarter, while analysts tracked by Bloomberg had been bracing for a roughly 6% decline. Elf touted market share gains, as well as strength in both retailer and e-commerce channels. The company’s adjusted earnings per share also exceeded Wall Street projections.
Elf has set itself apart from its beauty peers with relatively inexpensive prices, particularly as consumer companies ranging from packaged-food makers to restaurant chains and travel companies warn that Americans are curbing their spending as higher prices continue to bite and pandemic savings fade. Elf Chief Financial Officer Mandy Fields said the company’s average product price is about $6.50, below others in the mass beauty space closer to $10 and the $20-plus range for prestige beauty.
“In the event the consumer does choose to pull back, we’re a great option for that consumer who still wants to participate in beauty,” she said in an interview. Elf shares are up 30% this year through Thursday’s close, though they’ve lost some steam in recent weeks amid concern around increased tariffs on imports from China if former President Donald Trump re-takes the White Hous.