e.l.f. Beauty, Inc. (NYSE:ELF) Q1 2025 Earnings Conference Call August 8, 2024 4:30 PM ET
Company Participants
KC Katten - Vice President of Corporate Development and Investor Relations
Tarang Amin - Chairman and Chief Executive Officer
Mandy Fields - Senior Vice President and Chief Financial Officer
Conference Call Participants
Olivia Tong - Raymond James
Andrea Teixeira - JPMorgan
Anna Lizzul - Bank of America
Ashley Helgans - Jefferies
Oliver Chen - Cowen
Peter Grom - UBS
Linda Bolton Weiser - D.A. Davidson
Mark Altschwager - Baird
Susan Anderson - Canaccord Genuity
KC Katten
Thank you for joining us today to discuss e.l.f. Beauty's First Quarter Fiscal 2025 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 first quarter results and our raised outlook for fiscal 2025. I want to start by recognizing the e.l.f. Beauty team. We're off to a strong start this fiscal year delivering Q1 results ahead of our expectations.
In Q1 we grew net sales 50% increased gross margin by approximately 80 basis points and delivered $77 million in adjusted EBITDA. Q1 marked our 22nd consecutive quarter of both net sales growth and market share gains, putting off beauty in a verified growth of high growth companies. We are one of only five public consumer companies out of 274 that has grown for 22 straight quarters and averaged at least 20% sales growth per quarter. We've continued to prioritize three areas with significant runway for growth.
Color cosmetics, skin care, and international. Let me update you on our progress in Q1. In color cosmetics we continue to significantly outperform the category. In Q1 e.l.f. cosmetics grew 26% in track channels as compared to a category that was down 1% increasing our market share by 260 basis points. Nationally, e.l.f. is the number two mass brand on a dollar basis with approximately 12% share, more than double the level we had three years ago. As great as the share growth has been, we see an opportunity to double our market share over the next few years.