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Sep 30, 2021

e.l.f. Q2 2022 Earnings Report

Net sales increased and market share was gained.

Key Takeaways

e.l.f. Beauty reported a 27% increase in net sales for the second quarter of fiscal year 2022, marking the eleventh consecutive quarter of growth. The company also gained 30 basis points of market share in the U.S. color cosmetics market.

Net sales increased by 27% to $91.9 million.

Gross margin decreased by approximately 200 basis points to 63%.

GAAP net income was $5.7 million, with a diluted earnings per share of $0.11.

Adjusted EBITDA reached $18.5 million, representing 20% of net sales, a 29% increase year-over-year.

Total Revenue
$91.9M
Previous year: $72.4M
+27.0%
EPS
$0.21
Previous year: $0.16
+31.2%
Gross Profit
$58M
Previous year: $47.1M
+23.0%
Cash and Equivalents
$41.7M
Previous year: $41M
+1.6%
Free Cash Flow
-$8.03M
Previous year: -$10M
-19.7%
Total Assets
$493M
Previous year: $473M
+4.1%

e.l.f.

e.l.f.

Forward Guidance

The company updated its fiscal 2022 outlook to reflect an expected 14-16% increase in net sales.

Positive Outlook

  • Net sales are expected to increase by 14-16% compared to the previous outlook of 12-14%.
  • Adjusted EBITDA is projected to be $66.5-68.0 million.
  • The adjusted effective tax rate is estimated at 23-24%.
  • Adjusted net income is anticipated to be $36.0-37.5 million.
  • Adjusted diluted earnings per share are expected to be $0.65-0.68.