E.l.f. Beauty posts first $1 billion year, buts shares fall on weaker than expected guidance

Core Viewpoint - E.l.f. Beauty achieved its first billion-dollar fiscal year with a 77% increase in sales, but shares fell due to lower growth expectations [1][2]. Financial Performance - The company reported a net income of $14.53 million (25 cents per share) for the fourth fiscal quarter, down from $16.25 million (29 cents per share) a year earlier. Adjusted earnings were 53 cents per share [1][8]. - Sales for the fourth quarter reached $321.1 million, a 71% increase from $187.4 million a year prior. For the full year, sales totaled $1.02 billion, marking a 77% growth [2]. Future Guidance - E.l.f. expects net sales between $1.23 billion and $1.25 billion, representing a 20% to 22% increase, which is below analysts' expectations of $1.27 billion (27.4% growth). Adjusted net income is forecasted to be between $187 million and $191 million, with adjusted earnings between $3.20 and $3.25 per share, also below analyst expectations [4]. Industry Context - Ulta Beauty's CEO indicated a cooling demand in the cosmetics sector, which negatively impacted E.l.f. and other beauty stocks. This sentiment suggests a potential moderation in growth for the beauty industry [5][6].