Elfa beauty On Thursday he reduced his guide all year after seeing a 36% drop in earnings and sales “softest” sales in January, marking a rare recession for one of Beauty's most popular brands.
The cosmetics company reported vacation sales that were higher than expected, but profits that were lost by little estimates, another rare failure for the retailer.
The ELF actions fell more than 20% in the negotiation extended on Thursday.
This is how Elf did in his third fiscal quarter compared to what Wall Street was anticipating, based on a LSEG analysts survey:
- Profit per action: 74 tight cents compared to 75 expected cents
- Revenue: $ 355 million compared to $ 330 million
The company's net income for the company for the three -month period that ended on December 31 was $ 17.3 million, or 30 cents per share, compared to $ 26.9 million, or 46 cents per share, a year earlier. Excluding unique articles, including shares -based compensation and the expenses associated with its acquisition of Naturium, ELF registered adjusted profits of 74 cents per action.
Sales increased to $ 355 million, approximately 31% of $ 271 million a year before.
For the company's full fiscal year, which only has a remaining quarter, ELF issued a guide that entered below the expectations of Wall Street. The retailer now expects sales of between $ 1.3 billion and $ 1.31 billion, below estimates of $ 1.34 billion, according to Streetacount. I previously expected sales to be between $ 1.32 billion and $ 1.34 billion.
ELF now also expects profits adjusted per share between $ 3.27 and $ 3.32, well below Streetacount estimates of $ 3.54. ELF had previously waited for profits from all over $ 3.47 and $ 3.53.
The company's implicit guide for its current trimester seems even more difficult. According to its full -year perspective and its real figures of the first three quarters, ELF could see profits per action of between 66 cents and 71 cents during its current quarter, well below the expectations of 97 cents, according to a CNBC analysis and Estimates of LSEG.
In an interview with CNBC, CEO Tarang Amin shrugged that there were bigger problems in the company and, on the other hand, said a general deceleration in the beauty category, difficult comparisons of the previous year and launches of recent products that do not They worked as well as previous new ones. items.
When it comes to the general category, Amin said that Mass Cosmetics decreased by 5% in January and the company suspects that was driven by two factors: a holiday discount hangover and a deceleration in “social comments”, or less people who speak of beauty online, which can boost cosmetics sales.
“One, [with] The forest fires of Los Angeles, the people who I think they did not want to be deaf tone when publishing many things while that devastation continued. The second is that there was a lot of uncertainty around Tiktok. I feel that the only things that people were publishing in Tiktok was if they were going to remain open or closed, “said Amin.” Whatever the reason, that social comment had come down. “
Amin also intervened in new tariffs against China and how the company is being prepared. About 80% of its supply chain is in the region.
Amin said that it is too early to say if ELF will increase prices to compensate for the effect with the profits, but the new 10% tasks are better than the company was preparing.
In recent years, ELF has been one of the fastest growing brands in beauty, winning young and older buyers with their viral marketing, low prices and ability to offer more refordable “duos” of high quality of prestige of products from products from products prestige. .
While the brand is still growing and says that the general category is still exceeding, that growth rate is beginning to decrease and recent products have not increased sales in the same way they did in the past.
Amin said that the company prefers to adopt a “prudent” orientation approach and still considers that it is a victory that ELF is exceeding the general category.
He said the company is using the profits it generates to invest in improvements in inventory, infrastructure and international expansion management programs.
