E.l.f. Beauty has crossed the pond, landing in London with a new office, located at 2 Upper Street in Angel, Islington. The 10,000-square-foot space marks the beauty brand’s first official headquarters overseas. The company is committed to growing its international business, which is estimated at less than 20% of overall sales.

Jefferies’ Ashley Helgans wrote of the news, “In our view, e.l.f.’s  international opportunity is one of the most exciting pieces of the story and is still somewhat underappreciated by the Street. E.l.f.’s global social presence has created demand for the brand in many markets where it doesn’t currently sell; this move should result in faster uptake in new markets and ahead of market estimates.”

Across e.l.f.’s business, the company is prioritizing three areas for growth and market penetration: color cosmetics, skin care, and international. International net sales grew 119% year-over-year for the company’s most recent quarter.

“We see significant runway in both the U.K. and other markets around the world,” said Tarang Amin, Chairman and CEO, e.l.f. Beauty, in a press release. “E.l.f. will bring its unique value proposition, powerhouse innovation, and disruptive marketing engine – which have proven to resonate across categories and geographies – into new places and spaces with the purpose to serve every eye, lip and face.”

Currently with nearly 40 employees, the space has been created as a global hub for e.l.f. Beauty, which is headquartered in Oakland, California, with offices in New York, Los Angeles, New Jersey, Shanghai.

Helgans’ report also noted Christine Cassidy, VP General Manager of International for e.l.f. Beauty, who is well poised to grow the business and “has a long history in the beauty industry, having spent time at Estee Lauder, Bare Escentuals, and Kendo brands.”

E.l.f. Cosmetics ranks sixth in mass makeup in the U.K., up from number 12 five years ago. The brand is sold in retailers such as Superdrug and Boots. In late 2023, e.l.f. entered Italy and quickly became the leading makeup brand across both mass and prestige at retailer Douglas, as of December 31, 2023, based on Douglas data.

If e.l.f, can replicate its U.S. sales success in Western Europe, the sky’s the limit.

“E.l.f.’s next leg of growth is expanding into the Western beauty market. The mass color cosmetics market is $7.9 billion, and mass skin care is $13.8 billion. Market sizes are comparable to the U.S. mass cosmetics and skin care markets at $8.1 billion and $15.3 billion, respectively. If e.l.f. reached its current mass beauty market share in Western Europe in color cosmetics alone, that would represent over $650 million in retail sales opportunity. If the company launches in [about] two countries per year, this could add [about] $80 million of incremental revenue in year one of the rollout,” Jefferies estimates.

To learn more about e.l.f. Beauty’s expansion to London, what this means for its international business plan, as well as about the beauty brand’s marketing and product innovations, be sure to attend CEW’s upcoming Newsmaker event featuring Tarang Amin, Chairman and CEO, e.l.f. Beauty, on the evening of March 19 in NYC. For more information click here