https://www.cnbc.com/2023/11/01/elf-beauty-elf-earnings-q2-2024.html
E.l.f. Beauty raised its full-year outlook for the second quarter in a row on Wednesday after posting another 76% year-over-year sales jump, beating Wall Street’s expectations. The cosmetics company, known for its viral TikTok marketing and middle-of-the-road pricing, also saw profits nearly triple compared with the year-ago period. Here’s how E.l.f. did in its fiscal second quarter, compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:
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Earnings per share: 82 cents, adjusted, vs. 53 cents expected
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Revenue: $215.5 million vs. $197.1 million expected
The company’s reported net income for the three-month period that ended Sept. 30 was $33.3 million, or 58 cents per share, compared with $11.7 million, or 21 cents per share, a year earlier. Excluding one-time items associated with stock-based compensation and intangible assets, as well as other items, E.l.f. reported adjusted earnings of $47.1 million, or 82 cents per share. Sales rose to $215.5 million, up 76% from $122.3 million a year earlier. During the previous quarter, sales were also up 76%.
The strong results prompted the company to raise its full-year outlook for the second quarter in a row. It now expects net sales to increase between 55% and 57% to an estimated range of $896 million to $906 million. That’s ahead of projected full-year sales of $852 million, or growth of 47.1%, that analysts had expected, according to LSEG. E.l.f. previously expected sales to be up between 37% and 39% to between $792 million and $802 million. The company also raised its adjusted profit guidance. It now expects full-year adjusted earnings to be between $144 million and $146 million, compared with a previous range of $125 million to $127 million. It’s expecting adjusted earnings per share to be between $2.47 and $2.50, compared with a consensus estimate of $2.46, according to LSEG. E.l.f. previously expected full-year adjusted earnings per share to be between $2.19 and $2.22.
During the quarter, the company increased its marketing spend, helping to propel sales. But CEO Tarang Amin said E.l.f.’s success is more than just effective advertising. When asked what drove sales, Amin told CNBC it was “Our value equation, the ability to make prestige quality at these extraordinary prices, our holy grail innovation, taking inspiration from both prestige and our community, and having products consumers can’t seem to get enough of.” Digital sales were up about 75% during the quarter, and international sales came in 157% higher year over year, Amin said. E.l.f.’s skincare line, which is popular with younger consumers, was also up over 100%, the chief executive said. When asked how long Wall Street can expect to see such strong sales growth, Amin said the company’s raised guidance “speaks for itself.”
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