Sales: $267 million
Sales: $267 million.
Key Personnel: Tarang Amin, chairman and chief executive officer; Mandy Fields, senior vice president, chief financial officer; Kory Marchisotto, chief marketing officer; Richard F. Baruch Jr., senior vice president and chief commercial officer; Jonathan T. Fieldman, senior vice president, operations; Scott K. Milsten, senior vice president, general counsel, corporate secretary and chief people officer; Fanny Xu, vice president, general manager, China operations.
Major Products: Cosmetics, skin care and beauty tools.
Comments: Last year was a challenging one for e.l.f. Beauty, admitted chairman and CEO Tarang Amin when the company released its most recent full-year results back in February. Sales fell 1% to $267 million.
“Despite this, we improved our overall margin profile and delivered strong operating cash flow,” added Amin. “We also made significant progress on initiatives that we believe will better position e.l.f. in the rapidly evolving mass beauty landscape.”
The company’s net sales decline of $2.5 million was primarily driven by declining trends at select national retailers and a $4.9 million decrease in sales to discount channel customers, but these impacts were mostly offset by increases in shelf space and distribution in new accounts.
To get back to growth, the company is closing its 22 stores (they contributed 5% of net sales in 2018). Shuttering shops will enable a reallocation of investment against the e.l.f. brand and prioritization of national retailer and digital channels, according to the company, which said it expects to incur one-time accounting charges associated with the closings of $23-25 million.
John Bailey, president and chief financial officer, stepped down from his role effective March 31, 2019. Mandy Fields has since been hired as senior vice president, chief financial officer.
Earlier this year, e.l.f. tapped seasoned beauty executive Kory Marchisotto as chief marketing officer. Marchisotto’s beauty experience spans a diverse portfolio of brands, business models and distribution channels. She joins e.l.f. from Shiseido Americas, where she served most recently as SVP, US marketing, for its Bare Minerals brand. Prior to Bare Minerals, she spent 16 years in Shiseido’s Beauty Prestige Group, supporting Shiseido’s growth through strategic brand portfolio management, new brand integration, and multi-channel business development. Marchisotto started her beauty career in marketing and sales at Puig and LVMH.