e.l.f.(ELF)

Search documents
e.l.f.(ELF) - 2025 Q4 - Annual Report
2025-05-28 21:57
Workforce and Employee Engagement - As of March 31, 2025, the company had 633 full-time employees, with a high engagement score of 90%, significantly above the industry benchmark[37][41][43]. - The company has a diverse workforce, with over 70% of employees being women and over 40% being from diverse backgrounds[44]. Supply Chain and Sustainability - The company has developed a scalable, asset-light supply chain, primarily sourcing products from China, with additional sourcing from Thailand, Taiwan, Europe, and the United States[34]. - More than 85% of the company's products are produced in Fair Trade Certified™ facilities, reflecting its commitment to sustainability[47]. - The company is committed to reducing its carbon footprint and improving sustainability across its supply chain, including packaging and water usage[48][49]. - The company actively engages with suppliers on sustainability topics and is dedicated to responsibly sourcing sensitive ingredients[47]. Product Quality and Compliance - The company has a strong focus on product quality, formulating products without over 2,500 ingredients, compared to the FDA's restriction of 11 ingredients[46]. - The company does not rely on any single raw material, ensuring broad availability and regular quality testing for ingredient integrity[35]. - The company is subject to various federal, state, and international laws affecting online business operations, including consumer protection and data privacy regulations[65]. - Compliance with environmental, health, and safety regulations has not materially affected the company's capital expenditures or competitive position[66]. - The company relies on expert consultants for EU product registrations and compliance with regulations[64]. Financial Performance and Risks - Cash and cash equivalents increased to $148.7 million as of March 31, 2025, up from $108.2 million as of March 31, 2024[365]. - A hypothetical 1% increase or decrease in interest rates would result in an annualized change in interest expense of approximately $2.5 million[366]. - A 10% adverse movement in the Chinese Renminbi compared to the US dollar would negatively impact cost of sales and net income by approximately $42.0 million for the fiscal year ended March 31, 2025[368]. - The company does not have an active hedging program for foreign exchange risk, exposing it to potential losses from currency fluctuations[367]. Operational Insights - The company recognizes seasonal fluctuations in sales, with higher net sales typically occurring in the third and fourth fiscal quarters due to holiday purchasing[50]. - The company has invested in automation technologies for its distribution centers to enhance efficiency in picking, packaging, and scanning processes[36]. - The company operates as a single operating and reportable segment, with further details available in the consolidated financial statements[67]. - The company’s principal executive offices are located in Oakland, California, and its common stock is listed on the NYSE under the symbol "ELF"[68]. - The company makes its SEC filings available on its website, including Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q[69].
e.l.f.(ELF) - 2025 Q4 - Earnings Call Transcript
2025-05-28 21:32
Financial Data and Key Metrics Changes - In fiscal year 2025, the company achieved a net sales growth of 28% and adjusted EBITDA growth of 26% [3][32] - Q4 net sales grew 4% year over year, following a 71% growth in Q4 of the previous year [29] - The gross margin for Q4 was 71%, up approximately 50 basis points compared to the prior year, driven by favorable foreign exchange impacts and lower transportation costs [30] Business Line Data and Key Metrics Changes - The U.S. market share increased by 190 basis points, with the company being the number one brand in unit share and number two in dollar share in the U.S. cosmetics market [32][9] - International sales grew by 60% in fiscal year 2025, now representing nearly 20% of total sales [16][34] - The company expanded its skincare line, achieving strong results with Naturium and e.l.f. Skin, which are among the fastest-growing mass skincare brands [10][41] Market Data and Key Metrics Changes - The company gained market share in key geographies, including 190 basis points in the U.S., 170 basis points in Canada, and 270 basis points in the UK [3][32] - The company is the only cosmetics brand tracked by Nielsen to gain market share for 25 consecutive quarters [5] - The brand's unaided awareness increased from 13% in 2020 to 33% in 2024, indicating strong brand recognition [7] Company Strategy and Development Direction - The company aims to continue its focus on share gains in the U.S. and expanding internationally, with plans to launch e.l.f. in over 1,200 stores in the Netherlands and Belgium [17][36] - The acquisition of Road is seen as a unique opportunity to enhance growth and disrupt the beauty industry further [43][49] - The company plans to maintain marketing and digital spend at approximately 24% to 26% of net sales in fiscal year 2026, aligning with previous targets [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's performance, noting that consumption trends are better than in Q4 and that the company is gaining market share [61][36] - The impact of tariffs is expected to start affecting gross margins in Q1, but the company is optimistic about its ability to navigate these challenges [37][72] - Management refrained from providing a fiscal year 2026 outlook due to uncertainties surrounding tariffs but emphasized ongoing growth initiatives [35][61] Other Important Information - The company ended the fiscal year with $149 million in cash and generated approximately $115 million in free cash flow, up from $62 million the previous year [34] - The company is pursuing a pricing strategy to mitigate tariff impacts, planning a $1 increase across its product assortment globally [13][96] - The acquisition of Road is expected to close in the second quarter of fiscal year 2026, with the potential to enhance top-line growth and profitability [54][55] Q&A Session Summary Question: Can you provide insights on performance and Dollar General? - Management noted that performance at Dollar General is exceeding expectations, particularly in underserved rural areas [63] Question: Can you elaborate on the impact of tariffs? - Management indicated that the impact of tariffs will start in Q1, with some inventory already affected, and pricing adjustments will not mitigate this in the first quarter [72][88] Question: What are the growth opportunities with Road? - The acquisition of Road will be run independently, with a focus on executing the Sephora rollout and enhancing global expansion opportunities [65][66] Question: How will the pricing increase affect sales? - Management expects a positive sentiment towards the pricing increase, with a 99% positive response from the community [96] Question: What are the top line trends and growth potential? - Management expressed optimism about top line trends, noting strong consumption and growth in international markets [103]
e.l.f.(ELF) - 2025 Q4 - Earnings Call Transcript
2025-05-28 21:32
Financial Data and Key Metrics Changes - In fiscal year 2025, the company achieved a net sales growth of 28% and adjusted EBITDA growth of 26% [3][31] - Q4 net sales grew 4% year over year, following a 71% growth in Q4 of the previous year [28] - Q4 adjusted EBITDA was $81 million, up 99% compared to the previous year [30] - The company ended the year with $149 million in cash, an increase from $108 million a year ago [33] Business Line Data and Key Metrics Changes - The U.S. market share increased by 190 basis points, achieving new highs in mass cosmetics and skincare [31] - International sales grew by 60% in fiscal year 2025, now representing nearly 20% of total sales [16][17] - The company is the number one brand in the U.S. by unit share in cosmetics and has expanded its ranking in Walmart from number four to number two [10] Market Data and Key Metrics Changes - The company gained market share in key geographies, including 190 basis points in the U.S., 170 basis points in Canada, and 270 basis points in the UK [3] - The company is the only cosmetics brand tracked by Nielsen to gain share for 25 consecutive quarters [5] - The average price point for the company's products is approximately $6.5, significantly lower than legacy mass cosmetics brands [19] Company Strategy and Development Direction - The company plans to mitigate tariff impacts through pricing adjustments, supply chain optimization, and business diversification [12][14] - The acquisition of Road is seen as a unique opportunity to enhance growth and brand awareness, with plans for a significant rollout in Sephora [42][44] - The company aims to continue expanding its international presence and product offerings, particularly in skincare and hybrid makeup categories [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to gain market share despite tariff uncertainties and macroeconomic pressures [34][36] - The company is not providing a fiscal 2026 outlook due to the broad range of potential tariff outcomes [34] - Management noted that consumption trends in Q1 are better than in Q4, with positive growth in the U.S. cosmetics market [35][61] Other Important Information - The company has a strong balance sheet with less than 1x leverage in terms of net debt to adjusted EBITDA [33] - The company plans to increase marketing and digital spend to approximately 24% to 26% of net sales in fiscal 2026 [37] - The company has seen a significant increase in unaided brand awareness from 13% in 2020 to 33% in 2024 [7] Q&A Session Summary Question: Can you provide insights on Q1 performance and Dollar General? - Management indicated that Q1 performance is strong, with Dollar General exceeding expectations and gaining market share [63] Question: What are the growth opportunities with Road? - The acquisition of Road will be run independently, with a focus on executing the Sephora rollout and expanding globally [65][66] Question: Can you elaborate on the tariff impact and Naturium's performance? - Management confirmed that tariff impacts will start in Q1, and Naturium is performing well in Ulta Beauty and Boots [88][90] Question: What is the expected impact of the upcoming price increase? - The price increase is expected to be well-received, with positive sentiment from the community, and is aimed at preserving market share [96][97] Question: How diversified is Road's product offering? - Road currently has a tight product assortment of 10 products across skincare, color cosmetics, and accessories, with plans for future expansion [102]
e.l.f.(ELF) - 2025 Q4 - Earnings Call Transcript
2025-05-28 21:30
Financial Data and Key Metrics Changes - In fiscal 2025, the company achieved a net sales growth of 28% and adjusted EBITDA growth of 26% [2][35] - Q4 net sales grew 4% year over year, following a 71% growth in Q4 of the previous year [32] - Adjusted net income for Q4 was $45 million, or $0.78 per diluted share, compared to $31 million, or $0.53 per diluted share a year ago [34] Business Line Data and Key Metrics Changes - The company is the number one brand in the U.S. by unit share in cosmetics and has seen significant growth in skincare with e.l.f. Skin and Naturium [9][46] - International net sales grew 60% in fiscal 2025, with total international sales reaching $250 million, representing nearly 20% of total sales [15][36] - The company expanded its market share in the U.S. mass cosmetics and skincare sectors, achieving new highs [35] Market Data and Key Metrics Changes - The company gained 190 basis points of market share in the U.S. and 270 basis points in the UK during fiscal 2025 [2][35] - In Q4, U.S. net sales grew 1% year over year, while international sales grew 19% [32][33] - The company’s household penetration in the U.S. grew almost 400 basis points compared to the previous year [6] Company Strategy and Development Direction - The company plans to mitigate tariff impacts through pricing adjustments, supply chain optimization, and business diversification [12][14] - The acquisition of Rhode is seen as a unique opportunity to enhance growth and innovation in the beauty industry [47][61] - The company aims to maintain a strong focus on share gains in the U.S. and expanding its international business [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to continue gaining market share despite tariff uncertainties [30][66] - The company is not providing a fiscal 2026 outlook due to the broad range of potential tariff outcomes [11][38] - Management noted that consumption trends in Q1 are better than in Q4, with positive growth in various channels [39][66] Other Important Information - The company ended fiscal 2025 with $149 million in cash, up from $108 million the previous year, and generated approximately $115 million in free cash flow [37] - The company plans to implement a $1 price increase across its entire product assortment globally, effective August 1 [12][100] - The company’s marketing and digital investment for Q4 was 23% of net sales, down from 34% the previous year [34] Q&A Session Summary Question: Can you provide insights on Q1 performance and Dollar General? - Management indicated that Q1 performance is strong, with Dollar General exceeding expectations and gaining market share [68] Question: Can you elaborate on the Road acquisition and its integration? - The Road brand will continue to operate independently from Los Angeles, with plans for global expansion and a focus on the Sephora rollout [70][72] Question: What are the expected impacts of tariffs in Q1? - Management confirmed that tariff impacts will start in Q1, with no pricing adjustments in effect during that period [94] Question: How will the pricing increase affect sales? - The company anticipates a positive community response to the $1 price increase, with expectations of maintaining market share [102] Question: What are the growth opportunities for Road? - The Road brand has significant growth potential, with plans to expand its product assortment and leverage e.l.f.'s marketing capabilities [110]
E.l.f. Beauty to acquire Hailey Bieber skincare brand Rhode in up to $1 billion deal
CNBC· 2025-05-28 20:11
E.l.f. Beauty announced on Wednesday plans to acquire Hailey Bieber's beauty brand Rhode in a deal worth up to $1 billion as the cosmetics company looks to expand further into skincare. The acquisition – E.l.f.'s biggest ever, according to FactSet – is comprised of $800 million in cash and stock, plus an additional potential $200 million payout based on Rhode's performance over the next three years. The deal is expected to close in the second quarter of the company's fiscal 2026 — or later this year."I've b ...
e.l.f. Beauty's $1 Price Hike Seen As 'Manageable' Tariff Move: Analyst
Benzinga· 2025-05-27 19:40
Canaccord Genuity analyst Susan Anderson reiterated the Buy rating on e.l.f. Beauty ELF with a price forecast of $105.On May 23, the firm disclosed via social media its plan to increase prices by $1 starting August 1, attributing the decision to the current tariff environment.According to Anderson, this development should be viewed positively, as it suggests the company’s tariff impact is ‘manageable’ using its existing strategy while continuing to provide affordable, high-quality products.Also Read: ‘Big S ...
e.l.f. Beauty Q4 Preview: The Only Bullish Catalyst I Am Waiting To See
Seeking Alpha· 2025-05-26 02:28
Group 1 - The REIT Forum offers exclusive investment ideas and access to subscriber-only portfolios [1] - Amrita leads a family office fund in Vancouver, focusing on sustainable, growth-driven companies to maximize shareholder equity [2] - The Pragmatic Optimist newsletter, co-founded by Amrita, emphasizes portfolio strategy, valuation, and macroeconomics [2] Group 2 - Amrita has experience in high-growth supply-chain start-ups and has worked with venture capital firms to enhance user acquisition [2] - The newsletter has been recognized as a top finance newsletter and aims to simplify financial literacy for a broader audience [2]
E.l.f. Beauty (ELF) Stock Drops Despite Market Gains: Important Facts to Note
ZACKS· 2025-05-14 22:50
The most recent trading session ended with e.l.f. Beauty (ELF) standing at $77.15, reflecting a -1.36% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow experienced a drop of 0.21%, and the technology-dominated Nasdaq saw an increase of 0.72%.Prior to today's trading, shares of the cosmetics company had gained 49.91% over the past month. This has outpaced the Consumer Staples sector's loss of 1.24% and the S&P 500's gain of 9.86% in that ...
E.L.F. BEAUTY ALERT: Bragar Eagel & Squire, P.C. is Investigating e.l.f.
GlobeNewswire News Room· 2025-05-08 01:00
Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against e.l.f. Beauty, Inc. due to a class action complaint alleging breaches of fiduciary duties by the company's board of directors [1][2] Group 1: Allegations and Financial Misconduct - The complaint alleges that e.l.f. Beauty made false and misleading statements to the market, inflating revenue and other financial metrics over multiple quarters to maintain investor confidence [2] - The company reportedly faced rising inventory levels, which it falsely attributed to changes in sourcing, leading to materially misleading public statements throughout the class period [2] Group 2: Class Action Details - The class action complaint was filed on March 6, 2025, with a class period from November 1, 2023, to November 19, 2024 [1] - Investors suffered damages when the market became aware of the truth regarding e.l.f. Beauty's financial situation [2]
Should You Invest in e.l.f. Beauty (ELF) Based on Bullish Wall Street Views?
ZACKS· 2025-05-05 14:30
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about e.l.f. Beauty (ELF) .e.l.f. Beauty currently has an average broke ...