Elf Beauty cosmetics
Courtesy: e.l.f Beauty
E.l.f. Beauty reported a huge earnings beat Wednesday and raised its guidance for the fiscal year.
Shares of the company sank Thursday after jumping as much as 15% immediately after the earnings report on Wednesday afternoon.
Here’s what the company reported for the third fiscal quarter, compared with analyst estimates from LSEG:
- Earnings per share: $1.24 adjusted vs. 72 cents expected
- Revenue: $490 million vs. $460 million expected
E.l.f. said net sales increased 38% to $489.5 million, or $1.24 per share, up from $355 million, or 74 cents a share, in the same period a year ago, driven by growth across the globe and across its retailers and e-commerce. It reported adjusted net income of $74.5 million, up from $43 million over the same period a year ago.
The company recently acquired celebrity Hailey Bieber’s skin-care company, Rhode, in a roughly $1 billion deal, and it contributed $128 million to the company’s net third-quarter sales growth. E.l.f. told CNBC it’s projecting Rhode to contribute up to $265 million in net sales this year, up $65 million from its previous guidance.
E.l.f. also raised its full-year guidance, increasing its revenue outlook by a range of $42 million to $50 million.
“While beauty has comparatively low barriers of entry, very few brands have been able to scale. Of the nearly 1,800 cosmetics and skincare brands tracked by Nielsen, only 14 have surpassed $200 million in annual retail sales. We have four of these 14 brands,” CEO Tarang Amin said on a call with analysts. “The combination of our value proposition, powerhouse innovation, and disruptive marketing engine continue to fuel our results and our outperformance relative to the category.”
β CNBC’s Jodi Gralnick contributed to this report.