Elf Beauty (ELF) Q4 2024 earnings

Too much for one beauty slows down.

Goblin beauty announced its first billion-dollar fiscal year on Wednesday, a 77% increase in revenue and continued to counter warnings from Ulta Retail’s most resilient category is losing momentum.

The eye, lip, face company is famous for viral marketing and proficient in conquer young consumers, beat Wall Street estimates for profit and loss. However, its guidance was lower than expected, suggesting it expected its growth rate to begin to taper.

Here’s how Elf Beauty did in its fiscal fourth quarter compared to what Wall Street expected, based on LSEG’s survey of analysts:

• Earnings per share: adjusted 53 cents compared to 32 cents expected
• Revenue: $321.1 million vs. $292.6 million expected

The company reported net income for the three-month period ended March 31 of $14.53 million, or 25 cents per share, compared with $16.25 million, or 29 cents per share , a year earlier. Excluding one-time items, Elf posted earnings of 53 cents per share.

Revenue rose to $321.1 million, up about 71% from $187.4 million a year earlier.

For the full year, the company’s revenue grew to $1.02 billion, up 77% year-over-year.

Goblin beauty was in tears Over the past year, sales have hit high double-digit percentages quarter over quarter as consumers flock to low-priced beauty products through their own websites or at retailers like Walmart And Target.

In a statement, Elf CEO Tarang Amin said he believes the company is still in the “early stages” of its growth story and expects more in cosmetics, skin care and international markets. . Its guidance reflects that sentiment, but even so, the company is expected to grow at a slower rate than Wall Street predicts.

Elf expects net sales to be between $1.23 billion and $1.25 billion, up 20% to 22%. This figure is lower than the $1.27 billion, equivalent to a 27.4% increase that analysts had expected.

The company forecasts adjusted net income to be in the range of $187 million to $191 million and adjusted earnings to be in the range of $3.20 to $3.25 per share. According to LSEG, this was lower than the $3.51 that analysts had expected.

Last month, Ulta Beauty CEO Dave Kimbell threw cold water on the hot beauty category when he warned that Demand for cosmetics has cooledsending its shares down 15% that day and hitting shares of Elf, Estée Lauder and Coty.

“We have seen a slowdown in the overall category,” Kimbell said at an investor conference hosted by JPMorgan Chase. “We’ve entered the year — and we’ve talked about this above [earnings] call a few weeks ago – expect this category to be moderate. It has [had], like I said, several years of strong growth. We do not anticipate it will continue at its current growth rate.”

He added that the slowdown was “a little bit earlier” and “a little bit bigger than we thought.”

It remains to be seen how much Ulta’s sales have slowed. The beauty giant reports earnings next week.

Read Elf’s full earnings release This.