THE WHAT? e.l.f Beauty has reported a 7 percent year on year net sales growth to $72.4 million for the three months ending 30th September, 2020.
THE DETAILS? The growth was said to be driven by digital innovation as well as international growth and within Nielsen tracked channel customers.
According to a press release, gross margin increased 100 basis points to 65%, as compared to 64% in the comparable 2019 quarter. This increase was said to have been primarily driven by ‘a combination of margin accretive product mix and cost savings, a favorable foreign exchange impact, and a shift in sales mix to elfcosmetics.com, partially offset by the impact of tariffs on goods imported from China and certain costs associated with space expansion and customer reset activity.’
The company had quarterly earnings of $0.16 per share, compared to $0.15 per share in the comparable quarter. This year’s result beat Zacks Consensus Estimate of $0.12 percent.
THE WHY? Having seemingly defied the adverse conditions thrown up by the pandemic, which has hit many other beauty brands hard, e.l.f Beauty is cautiously optimistic about its future guidance.
Mandy Fields, e.l.f. Beauty’s Chief Financial Officer, said, “While we expect consumer behavior to be impacted by COVID-19 through the rest of our fiscal year, we remain optimistic about our ability to continue to gain share. We believe that our digital strength, core value proposition and continued execution of our strategic imperatives will fuel our performance.”
The company is predicting a 5-7 percent net sales increase for fiscal 2021.