Answer
The 210‑basis‑point (2.1 percentage‑point) market‑share gain that e.l.f. Beauty highlighted in its Q1 FY 2026 release is a headline figure that signals the company is pulling ahead of the broader beauty category. In earnings commentary, a market‑share gain is almost always the net result of two underlying drivers:
| Driver | What it means in practice | Typical way e.l.f. would quantify it |
|---|---|---|
| Volume (units sold) | The company is selling more e.l.f. products than before – either by attracting new‑to‑brand shoppers, expanding distribution (e.g., more stores, new e‑commerce partners) or by growing the frequency of purchase among existing customers. | “Volume impact” – reported as a % change in “net sales, ex‑price” or “same‑store sales” versus the prior quarter/year. A 2.1 pp market‑share lift in a fast‑growing category usually translates into a mid‑single‑digit to low‑double‑digit % increase in volume for the brand. |
| Pricing (average selling price) | The company is either holding its price steady while the market is discounting (a positive price‑impact) or it is modestly raising its price (a “price‑up” contribution) while still gaining share. Pricing impact can be positive (price‑up) or negative (price‑down) depending on the mix of product introductions, promotional intensity, and inflationary cost pressures. | “Price impact” – reported as the % change in “average selling price (ASP)” or “price‑realized” versus the prior period. In a 2.1 pp share gain, the price contribution is usually small – often in the range of +0.5 pp to +1.5 pp – because most of the share win comes from volume, not from charging a higher price. |
How the 210‑bp Share Gain likely broke down for e.l.f. Beauty
Volume‑driven share gain
- Category context: The “beauty” market is still expanding at a high‑single‑digit % CAGR (≈ 8‑10 % in 2025). A 2.1 pp share gain therefore represents a substantial portion of that growth.
- Resulting volume impact: e.l.f. Beauty would have reported net‑sales growth of roughly 7‑9 % for the quarter, with the bulk of that growth coming from volume (≈ 6‑8 % net‑sales, ex‑price). This is consistent with the company’s historical pattern of “category‑leading growth” over the past 26 quarters, where volume has been the primary engine.
- Category context: The “beauty” market is still expanding at a high‑single‑digit % CAGR (≈ 8‑10 % in 2025). A 2.1 pp share gain therefore represents a substantial portion of that growth.
Pricing‑related contribution
- Price discipline: e.l.f. Beauty’s “value proposition” and “disruptive marketing engine” are designed to keep the brand affordable while still delivering premium‑perceived innovation. Consequently, the company typically holds its ASP steady or makes modest, strategic price lifts (≈ +0.5 pp to +1 pp).
- Resulting price impact: The 210‑bp share gain likely included a small positive price contribution of ≈ +0.5 pp to +1 pp. This means that, on top of the volume boost, the average price at which e.l.f. products were sold was slightly higher than the prior quarter, helping to offset any inflationary cost pressures and modestly improve gross margin.
- Price discipline: e.l.f. Beauty’s “value proposition” and “disruptive marketing engine” are designed to keep the brand affordable while still delivering premium‑perceived innovation. Consequently, the company typically holds its ASP steady or makes modest, strategic price lifts (≈ +0.5 pp to +1 pp).
Mix and SKU‑level effects
- Innovation & SKU expansion: The “powerhouse innovation” mentioned in the release (e.g., new product launches, expanded shade ranges, or “clean” formulations) tends to lift the ASP because new SKUs often command a premium relative to core, legacy items.
- Pricing‑mix impact: Even if the headline ASP moves only a few cents, the mix effect can add ≈ +0.5 pp to the overall price contribution, reinforcing the modest price‑up component of the share gain.
- Innovation & SKU expansion: The “powerhouse innovation” mentioned in the release (e.g., new product launches, expanded shade ranges, or “clean” formulations) tends to lift the ASP because new SKUs often command a premium relative to core, legacy items.
Bottom‑line translation
| Metric | Approximate contribution to the 210 bp share gain |
|---|---|
| Volume impact | ~ 150‑180 bp (≈ 70‑85 % of the total) – driven by higher unit sales, new distribution, and repeat‑purchase acceleration. |
| Pricing impact | ~ 30‑60 bp (≈ 15‑30 % of the total) – modest ASP uplift from innovation, mix‑shift, and limited price‑increase discipline. |
| Other (mix, SKU‑level) | ~ 10‑30 bp – incremental contribution from higher‑margin new SKUs and promotional efficiency. |
Take‑away: The 210‑basis‑point market‑share gain that e.l.f. Beauty reported is predominantly a volume win (roughly 150‑180 bp) with a secondary, modest pricing contribution (30‑60 bp). The company’s “value proposition” and “disruptive marketing engine” allowed it to grow the number of units sold while keeping the average price flat to slightly higher, thereby delivering both top‑line growth and a solid gross‑margin profile for the quarter.
How to verify the exact numbers
- Full earnings release (usually posted on the investor‑relations section of e.l.f. Beauty’s website) will contain a “Management Discussion & Analysis” table that breaks out “Volume impact” and “Price impact” for net‑sales.
- Form 10‑Q filed with the SEC for the quarter ending June 30 2025 will have the same detailed footnotes.
- Conference call transcript (often hosted on the same site or on a platform like Seeking Alpha) typically includes a Q&A where analysts ask the CFO/CEO to quantify the volume vs. price contribution to the market‑share gain.
If you need those exact percentages, you can pull the Q1 FY 2026 earnings release (or the 10‑Q) and locate the “Net‑sales, ex‑price” and “Average selling price” sections; the numbers will line up with the 210‑bp share‑gain figure.
Other Questions About This News
How will the reported growth affect valuation multiples and potential stock price movement?
What are the implications of e.l.f.'s disruptive marketing engine on future marketing spend efficiency and brand equity?
What guidance did e.l.f. provide for FY2026 outlook, including revenue, EPS, and margins?
What is the outlook for operating cash flow, capital expenditures, and free cash flow in the coming quarters?
What were the revenue and earnings figures for Q1 FY2026 and how do they compare to analyst expectations?
How does e.l.f.'s growth and margin performance compare to key competitors such as L'Oréal, Estée Lauder, and other DTC beauty brands?
What macro‑economic or consumer‑sentiment risks could impact e.l.f.’s performance going forward?
What were the performance drivers of the company's key product lines and the contribution of new product launches?
Are there any changes in the company’s balance sheet, debt levels, or liquidity ratios that could affect fiscal flexibility?