Elf beauty products.
Courtesy: Elf Beauty
elf beauty It posted its first $1 billion fiscal year on Wednesday as sales rose 77%, but the retailer's stock fell as it said it expects its growth to slow.
The eye, lip and face company, known for its viral marketing and knack for winning over younger consumers, issued lower guidance than analysts had predicted.
Here's how Elf Beauty fared in its fiscal fourth quarter compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: 53 cents adjusted vs. 32 cents expected
- Revenue: $321.1 million vs. $292.6 million expected
The company reported net income for the three months ended March 31 as $14.53 million, or 25 cents per share, compared with $16.25 million, or 29 cents per share. , from the previous year. Excluding one-time items, Elf posted earnings of 53 cents per share.
Sales rose to $321.1 million, up about 71% from $187.4 million a year earlier.
For the full year, the company's sales grew to $1.02 billion, an increase of 77% from the same period a year earlier.
Elf Beauty has been booming for the past year, posting sales gains in high double-digit percentages quarter after quarter as consumers flock to its low-priced beauty products, whether through its own website or at retailers like Walmart and Aim.
In a statement, Elf CEO Tarang Amin said he believes the company is still in the “early stages” of its growth story and hopes there will be more in cosmetics, skin care and international markets. . His guidance reflects that sentiment, but even so, the company expects to grow at a slower pace than Wall Street expected.
Elf expects net sales to be between $1.23 billion and $1.25 billion, which would be an increase of 20% to 22%. That's below the $1.27 billion, or 27.4% increase, that analysts were expecting.
The company forecasts adjusted net income will be between $187 million and $191 million, and adjusted earnings will be between $3.20 and $3.25 per share. That's below the $3.51 analysts were expecting, according to LSEG.
Last month, Ulta Beauty CEO Dave Kimbell poured cold water on the red-hot beauty category when he warned that demand for cosmetics was cooling, sending its stock down 15% that day and will affect Elf's actions. 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 in a year and talked about this in our [earnings] I called a few weeks ago, hoping the category would moderate. Has [had]As I said, several years of strong growth. “We didn't anticipate it would continue at the rate it has been growing.”
He added that the slowdown has been “a little earlier” and “a little bigger than we thought.”
It remains to be seen how much Ulta's sales have slowed. The beauty giant will report its results next week.
Read Elf's full results release here.
