05.24.23
Elf Beauty delivered what the company is calling “outstanding” results for Q4 and the full fiscal year 2023.
For the three months ended March 31, 2023, net sales increased 78% to $187.4 million primarily driven by strength across our retailer and e-commerce channels, compared to the three months ended March 31, 2022.
For the twelve months ended March 31, 2023, net sales increased 48% to $578.8 million, primarily driven by strength across our retailer and e-commerce channels, compared to the twelve months ended March 31, 2022.
“Our outstanding results in fiscal 2023 underscore the power of the Elf brand and the world class team at Elf Beauty,” said Tarang Amin, Elf Beauty's chairman and CEO. "We grew net sales by 78% in Q4, marking our seventeenth consecutive quarter of net sales growth. We gained 270 basis points of market share in the quarter and increased our ranking to the number three US mass cosmetics brand for the first time, according to Nielsen. As we look ahead, we believe we are still in the early innings of unlocking the full potential we see for Elf Beauty.”
In Q4, gross margin increased approximately 470 basis points to 69%, primarily driven by pricing, lower transportation costs, product mix and cost savings.
Selling, general and administrative expenses increased $55.7 million to $121.1 million, or 65% of net sales. Adjusted SG&A was $113.9 million, or 61% of net sales. The year-over-year increase in SG&A dollars was primarily due to an increase in marketing and digital spend, operations costs, and compensation and benefits.
Net income was $16.2 million on a GAAP basis. Adjusted net income was $23.8 million.
Diluted earnings per share were $0.29 on a GAAP basis. Adjusted diluted earnings per share were $0.42. Adjusted EBITDA was $21.2 million, or 11% of net sales, up 66% year over year.
For the full fiscal year 2023, gross margin increased approximately 330 basis points to 67%, primarily driven by pricing, cost savings and product mix, partially offset by inventory adjustments. SG&A increased $100.3 million to $322.3 million, or 56% of net sales. Adjusted SG&A was $293.2 million, or 51% of net sales. The year-over-year increase in SG&A dollars was primarily due to an increase in marketing and digital spend, compensation and benefits, operations costs, retail fixturing and visual merchandising costs.
Net income was $61.5 million on a GAAP basis. Adjusted net income was $91.8 million.
Diluted earnings per share were $1.11 on a GAAP basis. Adjusted diluted earnings per share were $1.66. Adjusted EBITDA was $116.8 million, or 20% of net sales, up 56% year over year.
Net sales for fiscal 2024 are projected to be $705-720 million.
