E.l.f. Beauty Earnings Were Strong. Expect to See Big Sales Gains Ahead, the CFO Says.

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Cosmetics maker Elf Beauty posted better-than-expected earnings in the fiscal fourth quarter.

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Eugene Gologursky/Getty Images for Nylon

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Cosmetics maker Elf Beauty performed better-than-expected in the fiscal fourth quarter, and its chief financial officer says the outlook for the company’s sales and product innovation is bright.

Elf (ticker: ELF) said it earned an adjusted 13 cents per share on revenue that climbed 13% in the quarter to $105.1 million. Analysts were looking for the company to earn six cents per share on revenue of $91.2 million.

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For fiscal year 2023, the company said it expects earnings of between 78 cents and 81 cents per share on revenue of $432 million to $440 million. The consensus calls for EPS of 84 cents on revenue of $401.6 million.

The company noted that sales and market share have grown from pre-pandemic levels.

Spoke with CFO Mandy Fields baron’s Regarding the results, adding that overall the elf’s “Fiscal 2022 results were phenomenal,” the most recent period marked 13th Consistent quarter of sales growth. This is particularly impressive, she notes, given that the company wasn’t initially sure whether it could deliver positive revenue from the stimulus-enhanced year-ago period.

Fields attributes the company’s ongoing success to its strong innovation—pointing to products like its Power Grip makeup primer, a top performer that sells out quickly, as well as the glossy lip stain, which is increasingly popular. Because “people are taking off their masks and ready to go back there.”

Its recent makeup and skincare collaboration with Dunkin’ Donuts collection Elf is another example of creative moves to engage with its consumer.

He’s also very excited about the year ahead, as Elf’s outlook for fiscal year 2023 calls for sales up 10% to 12%, with double-digit growth every quarter. The company is seeing momentum in its skin care category, which grew rapidly during the pandemic, as well as consumers’ return to cosmetics.

Fields says Elf isn’t immune to issues like high transportation costs, which have hit the retail sector heavily, but it has offset those pressures with cost savings and price increases on nearly two-thirds of its products this March. Highlighting the company’s ability to

Yet even with that move, Elf products are still among the lowest priced offerings in the beauty segment at large. “We are bringing that prestige quality to the mass market and affordable price point,” Fields said, while also noting the performance of the Keys Soulcare and Well People brands, which are recent additions to the portfolio. “Higher price point but are still in a position to be accessible.” He believes that the affordability of the company’s products will keep the elf position strong amidst the rapidly changing consumer landscape.

Write Teresa Rivas at [email protected]

Credit: www.marketwatch.com /

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