Eleven beauty products.
Courtesy of Elf Beauty
Fairy beauty The company reported its first billion-dollar fiscal yr on Wednesday with a 77% increase in sales, however the retailer’s shares fell as the corporate expected its growth to slow.
The eye, lip and facial care company, known for its viral marketing and talent to draw younger consumers, gave guidance that was below analysts’ expectations.
Here’s how Elf Beauty performed within the fiscal fourth quarter in comparison with Wall Street expectations, based on an analyst survey from LSEG:
- Earnings per share: 53 cents adjusted in comparison with 32 cents expected
- Revenue: $321.1 million versus expected $292.6 million
The company reported net income of $14.53 million, or 25 cents per share, for the three-month period ended March 31, compared with $16.25 million, or 29 cents per share, a yr earlier. Excluding one-time items, Elf reported earnings of 53 cents per share.
Revenue rose to $321.1 million, up about 71% from $187.4 million a yr ago.
For the complete yr, the corporate’s revenue rose to $1.02 billion, up 77% from the identical period last yr.
Elf Beauty has been on a roll over the past yr, posting high double-digit quarter-over-quarter sales growth as consumers flock to the corporate’s low-cost beauty products either through its own website or at retailers Walmart And Goal.
In a press release, Elf CEO Tarang Amin said he believes the corporate remains to be within the “early stages” of its growth story and expects more to occur in cosmetics, skincare and international markets. The forecasts reflect this sentiment, but the corporate still expects slower growth than Wall Street expected.
Elf expects net sales to be between $1.23 billion and $1.25 billion, a rise of 20 to 22 percent. That’s below the $1.27 billion, or 27.4 percent, that analysts had expected.
The company expects adjusted net income between $187 million and $191 million and adjusted earnings between $3.20 and $3.25 per share. That’s below the $3.51 analysts were expecting, in accordance with LSEG.
Last month, Ulta Beauty CEO Dave Kimbell hit the red-hot beauty category when he warned that demand for cosmetics was cooling, causing shares to fall 15% that day and shares of Elf, Estee Lauder And Coty.
“We’ve seen a slowdown in the overall category,” Kimbell said at an investor conference hosted by JPMorgan Chase. “We came into the year – and talked about it at our party [earnings] Called a few weeks ago – I expect the category to be moderated. It has [had], as I said, several years of strong growth. We didn’t expect the growth rate to continue.”
He added that the slowdown came “slightly earlier” and “slightly greater than we thought.”
It remains to be seen how much Ulta’s sales have slowed. The beauty giant reports earnings next week.
Read the full earnings release from Elf Here.
