e.l.f. Cuts Fiscal 2025 Outlook
Here's our initial take on e.l.f. Beauty's (NYSE: ELF) fiscal third-quarter financial report.e.l.f. Beauty's fiscal third-quarter financial report featured two general themes that gave investors conflicting signals. On one hand, sales remained strong, with revenue climbing more than 30% year over year on favorable results from both its e-commerce channels and its retailer relationships. The company cited gains both in the U.S. and abroad, and improvements in gross margin signaled successful efforts to claw back on product costs and a more favorable exchange rate environment.Yet as we have seen in past quarters, e.l.f. wasn't able to translate its sales success into gains on the bottom line. Adjusted earnings per share of $0.74 per share were unchanged from year-ago levels, leaving e.l.f. with nine-month earnings of $2.61 per share, down 2% from the same three-quarter period in the previous fiscal year. A 36% jump in selling, general, and administrative costs weighed on operating income growth, particularly with stock-based compensation nearly doubling from where it was 12 months ago.Continue reading
Here's our initial take on e.l.f. Beauty's (NYSE: ELF) fiscal third-quarter financial report.
e.l.f. Beauty's fiscal third-quarter financial report featured two general themes that gave investors conflicting signals. On one hand, sales remained strong, with revenue climbing more than 30% year over year on favorable results from both its e-commerce channels and its retailer relationships. The company cited gains both in the U.S. and abroad, and improvements in gross margin signaled successful efforts to claw back on product costs and a more favorable exchange rate environment.
Yet as we have seen in past quarters, e.l.f. wasn't able to translate its sales success into gains on the bottom line. Adjusted earnings per share of $0.74 per share were unchanged from year-ago levels, leaving e.l.f. with nine-month earnings of $2.61 per share, down 2% from the same three-quarter period in the previous fiscal year. A 36% jump in selling, general, and administrative costs weighed on operating income growth, particularly with stock-based compensation nearly doubling from where it was 12 months ago.
