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elf Exhibit 99.1 e.l.f. Beauty Announces Third Quarter Fiscal 2021 Results - Delivered 10 % Net Sales Growth - - Gained 100 Basis Points of Market Share in Nielsen U.S. Color Cosmetics - - Raises Fiscal 2021 Guidance - OAKLAND , California ; February 3 , 2021 — e.l.f. Beauty ( NYSE : ELF ) today announced results for the three and nine months ended December 31 , 2020 . " Our core value proposition and product innovation continue to resonate with consumers , " said Tarang Amin , e.l.f. Beauty's Chairman and Chief Executive Officer . " Of the top five color cosmetics brands in the U.S. , e.l.f. grew the most share in the quarter . We also advanced our transformation to a multi - brand portfolio with the launch of our Keys Soulcare skincare collection . " " I'm proud of the e.l.f. Beauty team for delivering eight consecutive quarters of net sales growth . Our brand building efforts and digital focus fueled our growth before and during the pandemic , and we believe position us well for the future , " added Amin . Three Months Ended December 31 , 2020 Results Net sales increased 10 % , or $ 7.8 million , to $ 88.6 million , as compared to $ 80.8 million in the three months ended December 31 , 2019. The increase was driven by strength in e - commerce , international , and our national retailers . Gross margin decreased 50 basis points to 64 % , as compared to 65 % in the three months ended December 31 , 2019. Gross margin benefited from margin accretive product mix and cost savings , a mix shift to elfcosmetics.com , and to a lesser degree , a favorable foreign exchange rate impact . Offsetting these benefits were certain costs related to retailer activity and space expansion . Selling , general and administrative expenses ( " SG & A " ) were $ 50.8 million , or 57 % of net sales , as compared to $ 39.6 million , or 49 % of net sales in the three months ended December 31 , 2019. Adjusted SG & A ( SG & A excluding the items identified in the reconciliation table below ) was $ 43.3 million , or 49 % of net sales , as compared to $ 35.8 million , or 44 % of net sales in the three months ended December 31 , 2019 . The increase was primarily due to investments in marketing and digital , headcount costs from building out the Company's marketing , digital and innovation capabilities , and increased operational costs driven by the increase in e - commerce sales . The provision for income taxes was $ 0.5 million , as compared to a provision of $ 3.0 million in the three months ended December 31 , 2019 . The change was primarily driven by a decrease in income before taxes of $ 6.2 million and an increase in discrete tax benefit of $ 1.1 million , primarily related to stock - based compensation . Net income was $ 4.3 million , or $ 0.08 per diluted share , as compared to net income of $ 8.0 million , or $ 0.16 per diluted share in the three months ended December 31 , 2019 . Adjusted net income ( net income excluding the items identified in the reconciliation table below ) was $ 11.6 million , or $ 0.22 per diluted share , as compared to adjusted net income of $ 12.2 million , or $ 0.24 per diluted share in the three months ended December 31 , 2019 .