elf beauty cosmetics
Provided by: Elf Beauty
elf beauty reported a significant profit beat on Wednesday and raised its outlook for the fiscal year.
The company’s shares soared as much as 15% shortly after the company announced Wednesday afternoon’s results, before falling on Thursday.
Here’s what the company reported in its third fiscal quarter compared to LSEG analyst estimates:
Earnings per share: $1.24 adjusted vs. 72 cents expected Earnings: $490 million vs. $460 million expected
Elf said net sales increased 38% to $489.5 million, or $1.24 per share, from $355 million, or 74 cents per share, in the year-ago period, driven by growth worldwide and across retailers and e-commerce. The company reported adjusted net income of $74.5 million, up from $43 million in the year-ago period.
The company recently acquired celebrity Hailey Bieber’s skin care company Lorde in a deal worth about $1 billion, contributing $128 million to the company’s third-quarter net sales growth. Elf told CNBC it expects Lorde to contribute up to $265 million to net sales this year, an increase of $65 million from its previous outlook.
Elf also raised its full-year guidance, raising its sales guidance to a range of $42 million to $50 million.
“The barriers to entry in beauty are relatively low, but few brands are able to scale,” CEO Taran Amin said on a conference call with analysts. “Of the nearly 1,800 cosmetics and skin care brands that Nielsen tracks, only 14 have annual retail sales of more than $200 million. We own four of those 14 brands.” “The combination of our value proposition, strong innovation and disruptive marketing engine further improves our performance and continues to improve our performance relative to the category.”
—CNBC’s Jodi Gralnick contributed to this report.
