In this article, we will talk about the Best Long-lasting Perfume for Men Under $500. For our detailed discussion, go directly to the 25 Best Long-lasting Perfumes for Men Under $500.
As stated earlier in our article “15 Best Everyday Colognes in 2024,” the global perfume market was valued at $50.85 billion in 2022 and has been estimated to grow at a CAGR of 5.9% between 2023 and 2030. Most significantly, the market for luxury perfumes was estimated to be worth $13.66 billion in 2022 and is predicted to grow at a CAGR of 5.3% from 2023 to 2029. The mentioned data was provided in our article, “11 Best Travel-Size Fragrances For Your Next Vacation.”
e.l.f. Beauty, Inc. (NYSE:ELF)’s Financial Performance Over The Years:
One of the “Biggest Skincare Companies In The US”, e.l.f. Beauty, Inc. (NYSE:ELF), which provides high-quality cosmetics and skincare at lower prices than its competitors, has released its Q4 FY2024 earnings. According to the mass market makeup company, net sales in the year ending March 31, 2024, increased by an incredible 77% to $1,023.9 million over the same time the previous year, breaking the billion barrier and exceeding Wall Street expectations. Surpassing forecasts, it grew market share in its cosmetics and skincare products to 10.5% and 1.6%, respectively. As they exceeded in each of their three pillars – color cosmetics, skincare, and international expansion – Q4 was the 21st consecutive quarter in which Elf has gained market share. Overall, the growth was strong in this quarter.
Elf stock has surged more than 79% over the previous year and has already increased by over 37% in the current year as of June 14th, 2024, outperforming S&P 500’s 14% gain over the year. At the end of 2022 and the start of 2023, the stock was at $55.30 before soaring to $217.40 on March 1, 2024, ahead of the Q4 FY2024 earnings report due to positive analysts prediction and average buy rating. The trailing PE ratio stands at 87.16, while the forward PE ratio is 57.14. EPS (TTM) is $2.22. Currently, the stock is trading at $192.63 per share.
The company’s revenue has also experienced continuous growth over the years, reaching record breaking levels so far this year. Elf’s annual revenue has surged significantly by 76.92% YoY, rising from $578.84 million in 2023 to $1.02 billion in 2024, solidifying its position as a strong company among other cosmetic companies such as Estee Lauder and Coty.
There are several apparent reasons for Elf’s growth. E.l.f. has gained popularity among Gen Alpha and Gen Z customers due to its widespread availability and affordable price point. The $333 million acquisition of skincare firm Naturium in October 2023 has increased the company’s young customer base. The CEO of Elf, Tarang Amin explained: “E.l.f. Skin has a similar consumer profile to E.l.f. color cosmetics; it’s primarily Gen Z and women,” “Naturium has a very different proposition. The price points are higher, about $18, and the consumer set skews millennial.” (The brand’s user base is 40% men.) Therefore, Elf’s marketing to a variety of age groups is one of the factors contributing to its success.
Secondly, Elf has internationally expanded its business. Amin stated that in Q4, net sales from overseas growth increased 115% YoY, accounting for 16% of net sales as opposed to 13% the year before. This growth was led by countries such as Canada and the United Kingdom, which have experienced “terrific growth”. Amin added that these are among Elf’s “largest global markets,”. E.l.f. is now the number-four cosmetics brand in Canada and number-six in the UK. However, he thinks the business has the opportunity to expand in other areas, such as Saudi Arabia, Australia, France, and Italy. During the results call, Amin declared that the business will be entering Mexican Sephora stores to compete with industry giants like Maybelline and L’Oréal and to explore more overseas markets.
Thirdly, Elf has been actively marketing on social media. According to Amin, the company’s website and social media platforms account for around 25% of its total revenue. The business collaborated with creators like Mikayla Nogueira Hawken in the early days of TikTok and Twitch. “On TikTok, our first hashtag challenge had 3 billion views. I think our last one had 15 billion views,” Amin says. Furthermore, he mentioned that E.l.f. is a well-known and expanding brand on Roblox, which helps it stay relevant with Gen Alpha gamers.
Amrita Roy, an analyst believes that “there are three key drivers of their outperformance across their growth pillars that include a) their strong value proposition of delivering high-quality products for every eye, lip, and skin at compelling price points, with the average price point of $6.50, as compared to $9.50 for legacy mass cosmetic brands and $20 for prestige brands, b) a culture of product innovation, where it focuses on launching enduring product franchises, such as extending their Power Grip franchise into setting spray category with the launch of Power Grip Dewy setting spray at $10, compared to $38 for prestige equivalent, resulting in double-digit lift in sales, and c) engaging with their customers through unique and creative moments with their disruptive marketing engine, allowing them to reach new audiences beyond Gen Zs and creating brand awareness.”.
Elf’s digital consumption increased by a noteworthy 70% in comparison to the previous year, with digital channels now making up 22% of overall consumption, up from 18% in the previous year. The growth of their Beauty Squad Loyalty Program, which now has 4.8 million members compared to 4.5 million the previous quarter and accounts for 80% of e.l.f.cosmetics.com sales, has to do with this growth. Furthermore, the company is concentrating on increasing its retail footprint, capitalizing on the success of its Target strategy, in which it enjoys a leadership position with more than 19% market share. Elf intends to grow its presence at CVS, Walmart, and Ulta Beauty during the year to acquire more market share, particularly in the skincare area.
I strongly believe that Elf’s sales growth is also due to its strategy of creating affordable alternatives to luxury cosmetics, commonly referred to as “dupes”. This is likely why Elf’s competitors and high-end cosmetics companies such as Estee Lauder as well as Bath and Body Works experienced declines and noticeable slowing in pace of growth, respectively. L’Oreal also faced this “post-pandemic inflation” period. This is because consumers are prioritizing need-based goods. Estee Lauder had a 10% decrease in revenue growth YoY in 2023, further declining 3.52% from 2023 to the last 12 months. Similarly, L’Oreal has also faced tough years; it grew at a rate of 13.34% between 2020 and 2021. However, this growth rate slowed down sharply from 18.51% in 2021 to 7.61% in 2023, indicating a downturn in the industry as a whole. ELF, however, remains an exception due to the aforementioned reason.
Looking ahead, the company aims to increase revenue by 21% YoY to $1.24 billion, with adjusted EBITDA of $287 million, representing a 22% YoY increase with a margin of 23%. The analysts’ projected revenue of 27% is higher than the management’s 21% prediction.
At the same time, elite managers are pouring money into this stock. In Q1 FY 2024, 33 hedge funds reported holding shares in e.l.f. Beauty, Inc. (NYSE:ELF), although a decrease from 34 funds in the previous quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder in the company, with 641,400 shares worth $125.73 million.
ClearBridge Small Cap Growth Strategy stated the following regarding E.l.f. Beauty, Inc. in its first quarter 2024 investor letter:
“Encouragingly, we are seeing underlying improvements from companies we do own in the portfolio, with several being recent portfolio additions or subjects of repositioning work executed in 2023.
The first quarter represented another period of fruitful new idea generation with nine new investments. Consistent with historical practice, these initial investments represent modest position sizes that we intend to build over time.
E.l.f. Beauty, Inc. (NYSE:ELF), in the consumer staples sector, is a mass cosmetics and skincare provider in the U.S., selling professional-quality makeup and skincare products at an attractive price point relative to legacy brands. With a significant online, direct-to-consumer presence and clean product ingredients, the company has been a strong market share gainer with multiple levers to sustain elevated growth.
Conclusion:
Given the significant opportunities available in the cosmetics and skincare segments, and constant revenue growth, it seems like e.l.f.’s growth potential remains substantial. I appreciate how the business is leveraging remarkable marketing experiences in addition to strong product innovation to increase interaction online and in its physical retail locations across the US and abroad to reach new markets. A high P/E ratio and earnings boost further indicate that the market is robust and that the company’s growth has upside potential. I feel the stock is reasonably priced in terms of risk-reward, making it a “buy.”.
While we acknowledge the potential of ELF as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an Al stock that is as promising as ELF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
With that said, here is the Best Long-lasting Perfume for Men Under $500.
Methodology:
To pick out the Best Long-lasting Perfume for Men Under $500, we searched the internet for the best long-lasting perfumes under $500 and ranked them based on their number of appearances in our sources, so each appearance got one score. Then we ranked the list based on the aggregated scores. We have also included each perfume’s price and quantity in our list, using the price as a tie-breaker in case two or more perfumes had the same score. The prices that we have mentioned are for particular spray bottles with varying capacities, mostly relying on Sephora and Nordstrom for the data. Please note, however, that we can’t guarantee the accuracy of these prices, since they can vary from region to region.
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1. Dior Sauvage Elixir
Insider Monkey Score: 15
Price: $250 for 3.4 o.z
The best long-lasting perfume for men under $500 is Dior’s Sauvage Elixir. The release of Sauvage Elixir took place in 2021, and François Demachy is the genius behind the creation of the scent. The notes in the middle are Lavender; the base notes are Sandalwood, Amber, Patchouli, and Haitian Vetiver; the top notes are Nutmeg, Cinnamon, Cardamom, and Grapefruit.
Click to see the entire list of the 25 Best Long-lasting Perfumes for Men Under $500.
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