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    Breaking News

    e.l.f.'s Q3 Sales Drop 11%

    Company points to decline in sales to discount channel customers, certain pipeline shipments in the third quarter of 2017.

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    11.06.18
    e.l.f. Beauty yesterday announced results for its three- and nine-month periods ended September 30, 2018.
     
    Net sales for the three months ended Sept. 30 decreased 11%, or $8.0 million from the third quarter of 2017, to $63.9 million, primarily attributable to a decline in sales to discount channel customers, as well as certain pipeline shipments in the third quarter of 2017.
     
    Gross margin increased from 60% to 61% in the third quarter of 2018, primarily as a result of changes in customer mix and margin accretive innovation, partially offset by unfavorable movements in foreign exchange rates, note dthe company.
     
    “Our third quarter results reaffirm our confidence in our 2018 guidance,” stated Tarang Amin, chairman and CEO. “We delivered growth in the specialty channel and demonstrated disciplined expense and balance sheet management. We are aggressively pursuing three strategic initiatives to improve business trends in tracked channels: thoughtfully increasing investment in the e.l.f. brand, focusing on key items, and optimizing 2019 shelf sets.”
     
    Net sales for the nine-month period increased $0.6 million from the first nine months of 2017, to $188.9 million, primarily driven by growth in leading national retailers, offset by a decline in sales to discount channel customers.
     
    According to e.l.f., gross margin decreased from 62% to 61% in the first nine months of 2018, primarily as a result of unfavorable movements in foreign exchange rates, partially offset by changes in customer mix and margin accretive innovation.
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