elf Beauty, Inc. (NYSE:ELF) Q2 2024 Earnings Conference Call November 1, 2023 4:30 PM ET
Company Participants
Kristina Katten - VP, IR
Tarang Amin - Chairman, CEO & President
Mandy Fields - SVP & CFO
Conference Call Participants
Olivia Tong - Raymond James & Associates
Dara Mohsenian - Morgan Stanley
Anna Lizzul - Bank of America Merrill Lynch
Oliver Chen - TD Cowen
William Chappell - Truist Securities
Jon Andersen - William Blair & Company
Susan Anderson - Canaccord Genuity
Korinne Wolfmeyer - Piper Sandler
Andrea Teixeira - JPMorgan Chase & Co.
Peter Grom - UBS
Linda Bolton-Weiser - D.A. Davidson & Co.
Mark Astrachan - Stifel, Nicolaus & Company
Rupesh Parikh - Oppenheimer
Kristina Katten
Thank you for joining us today to discuss e.l.f. Beauty's Second Quarter Fiscal '24 Results. I'm KC Katten, Vice President of Corporate Development and Investor Relations. With me today are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer. We encourage you to tune into our webcast presentation for the best viewing experience, which you can access on our website at investor.elfbeauty.com.
Since many of our remarks today contain forward-looking statements, please refer to our earnings release and reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements.
In addition, the company's presentation today includes information presented on a non-GAAP basis. Our earnings release contains reconciliations of the differences between the non-GAAP presentation and the most directly comparable GAAP measure.
With that, let me turn the webcast over to Tarang.
Tarang Amin
Thank you, KC, and good afternoon, everyone. Today, we will discuss the drivers of our Q2 results and our raised outlook for fiscal '24. I want to start by recognizing the e.l.f. Beauty team for delivering another phenomenal quarter. In Q2, we grew net sales by 76%, increased gross margin by 570 basis points and delivered $60 million in adjusted EBITDA, up 122% versus prior year.
Q2 marked our 19th consecutive quarter of net sales growth, putting e.l.f. Beauty in a select group of consistent, high-growth consumer companies. We're 1 of only 5 public consumer companies out of 274 that has grown for 19 straight quarters and average at least 20% sales growth per quarter.
We've continued to highlight 3 areas with significant runway for growth in color cosmetics, skin care and international. Let me update you on our progress in Q2. In color cosmetics, we continue to significantly outperform category trends. In Q2, e.l.f. Cosmetics grew 51% in tracked channels, nearly 17x category growth of 3%. We increased our share by 330 basis points. Out of nearly 800 cosmetics brands tracked by Nielsen, e.l.f. is the only brand to gain share for 19 consecutive quarters. We have more than doubled our market share since 2019 from about 4.5% to 10%.