e.l.f. Beauty Announces Fourth Quarter and Full Fiscal 2021 Results

Rhea-AI Impact

(Neutral)

Rhea-AI Sentiment

(Positive)

Tags

earnings

Rhea-AI Summary

e.l.f. Beauty (NYSE: ELF) reported strong fiscal 2021 results, highlighting a 24% growth in fourth-quarter net sales, reaching $92.7 million. The company achieved a 12% increase in net sales for the year to $318.1 million. Notably, e.l.f. was the only top 5 U.S. color cosmetics brand with growth during this period. The firm anticipates 8-10% net sales growth for fiscal 2022. Financial metrics showed a gross margin of 64.8% for the year and diluted EPS of $0.12 on a GAAP basis.

Positive

Fourth-quarter net sales grew 24% to $92.7 million.
Fiscal year net sales increased by 12% to $318.1 million.
e.l.f. was the only top 5 U.S. color cosmetics brand to post growth.
Fiscal 2022 outlook anticipates net sales growth of 8-10%.

Negative

Gross margin decreased by 110 basis points to 63.2% in Q4.
SG&A expenses rose by $10.8 million in Q4, representing 62.4% of net sales.
Full-year SG&A expenses increased by $37 million, making up 61% of net sales.

05/26/2021 - 04:05 PM

e.l.f. Beauty (NYSE: ELF) today announced results for the three and twelve months ended March 31, 2021.

“Our fiscal 2021 results demonstrate that our business model and competitive advantages are robust, as we strengthened our position in a challenging environment,” said Tarang Amin, e.l.f. Beauty's Chairman and Chief Executive Officer. “Our fourth quarter net sales growth of 24% marked our ninth consecutive quarter of growth. For the year, e.l.f. Cosmetics was the only top 5 U.S. color cosmetics brand to post growth and gain share.”

“We’re pleased with our outstanding results and believe that we can continue our business momentum in fiscal 2022 as we advance our transformation to a multi-brand portfolio,” said Mandy Fields, e.l.f. Beauty’s Chief Financial Officer. “We currently expect net sales growth of 8-10% in fiscal 2022—at the top end of our long-term economic model.”

Fourth Quarter Fiscal 2021 Review

For the three months ended March 31, 2021, compared to the three months ended March 31, 2020:

Net sales increased 24% to $92.7 million, primarily driven by strength in e-commerce, international, and our national retailers.
Gross margin decreased approximately 110 basis points to 63.2%, with benefits from margin accretive product mix, cost savings, and a mix shift to elfcosmetics.com offset by certain costs related to retailer activity and space expansion, unfavorable foreign exchange rates and increased inventory adjustments.
Selling, general and administrative expenses ("SG&A") increased $10.8 million to $57.8 million or 62.4% of net sales. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) was $51.3 million, or 55.3% of net sales. The increase in SG&A was primarily due to investments in marketing and digital and increased operational costs.
The benefit for income taxes was $2.8 million.
Net loss was $24.0 thousand on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $8.6 million.
Diluted earnings per share were $0.00 on a GAAP basis. Adjusted diluted earnings per share (diluted earnings per share calculated with adjusted net income excluding the items identified in the reconciliation table below) were $0.16.
Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $12.9 million or 13.9% of net sales.

Full Year Fiscal 2021 Review

For the twelve months ended March 31, 2021, compared to the twelve months ended March 31, 2020:

Net sales increased 12% to $318.1 million, primarily driven by strength in e-commerce, international, and our national retailers.
Gross margin increased approximately 80 basis points to 64.8%, with benefits from margin accretive innovation, cost savings, a mix shift to elfcosmetics.com, and price increases partially offset by certain costs related to retailer activity and space expansion, an increase in inventory adjustments, and the impact of tariffs on goods imported from China.
SG&A increased $37.0 million to $194.2 million or 61.0% of net sales. Adjusted SG&A was $165.1 million or 51.9% of net sales. The increase in SG&A was primarily due to investments in marketing and digital, organizational costs related to building out the Company's marketing, digital and innovation capabilities, and increased operational costs mainly driven by the increase in e-commerce sales.
The benefit for income taxes was $2.5 million.
Net income was $6.2 million on a GAAP basis. Adjusted net income was $36.8 million.
Diluted earnings per share were $0.12 on a GAAP basis. Adjusted diluted earnings per share were $0.71.
Adjusted EBITDA was $61.1 million or 19.2% of net sales.

Balance Sheet

The Company ended fiscal 2021 with $57.8 million in cash and cash equivalents and $110.3 million of long-term debt and finance lease obligations, as compared to $46.2 million in cash and cash equivalents and $126.1 million of long-term debt at the end of fiscal 2020.

Fiscal 2022 Outlook

The Company is providing the following outlook for fiscal 2022. When compared to fiscal 2021, the outlook for fiscal 2022 reflects an expected 8-10% increase in net sales.

Fiscal 2022 Outlook

Fiscal 2021

Net sales

{ "@context": "https://schema.org", "@type": "FAQPage", "name": "e.l.f. Beauty Announces Fourth Quarter and Full Fiscal 2021 Results FAQs", "mainEntity": [ { "@type": "Question", "name": "What were the fourth quarter 2021 net sales for e.l.f. Beauty?", "acceptedAnswer": { "@type": "Answer", "text": "e.l.f. Beauty reported fourth quarter net sales of $92.7 million, a 24% increase compared to the previous year." } }, { "@type": "Question", "name": "How did e.l.f. Beauty perform in fiscal 2021?", "acceptedAnswer": { "@type": "Answer", "text": "In fiscal 2021, e.l.f. Beauty achieved a 12% increase in net sales, totaling $318.1 million." } }, { "@type": "Question", "name": "What is the fiscal 2022 sales outlook for e.l.f. Beauty?", "acceptedAnswer": { "@type": "Answer", "text": "e.l.f. Beauty expects net sales growth of 8-10% for fiscal 2022." } }, { "@type": "Question", "name": "What was e.l.f. Beauty's diluted earnings per share for fiscal 2021?", "acceptedAnswer": { "@type": "Answer", "text": "For fiscal 2021, e.l.f. Beauty reported diluted earnings per share of $0.12 on a GAAP basis." } }, { "@type": "Question", "name": "What is the current cash position of e.l.f. Beauty?", "acceptedAnswer": { "@type": "Answer", "text": "As of the end of fiscal 2021, e.l.f. Beauty had $57.8 million in cash and cash equivalents." } } ] }