On May 22, 2024, e.l.f. Beauty Inc (ELF, Financial) released its 8-K filing announcing robust financial results for the fourth quarter and full fiscal year ending March 31, 2024. The company, known for its wide range of cosmetic products marketed under brands such as e.l.f. Cosmetics, W3LL PEOPLE, and Keys Soulcare, reported significant growth in net sales and market share.
Fourth Quarter Fiscal 2024 Performance
For the fourth quarter, e.l.f. Beauty Inc (ELF, Financial) reported net sales of $321.1 million, a 71% increase compared to the same period last year. This impressive growth was driven by strong performance across both retailer and e-commerce channels. The company's gross margin also improved by 180 basis points to 71%, attributed to favorable foreign exchange impacts, international price increases, and cost savings.
Despite the increase in selling, general, and administrative (SG&A) expenses to $210.2 million, or 65% of net sales, the company achieved a net income of $14.5 million on a GAAP basis. Adjusted net income stood at $30.8 million, with adjusted diluted earnings per share (EPS) of $0.53, surpassing the analyst estimate of $0.23.
Full Year Fiscal 2024 Achievements
For the full fiscal year, e.l.f. Beauty Inc (ELF, Financial) reported net sales of $1.02 billion, marking a 77% increase from the previous year. The company's gross margin for the year increased by 330 basis points to 71%. SG&A expenses rose to $574.4 million, or 56% of net sales, primarily due to increased marketing and digital spend, compensation and benefits, and other operational costs.
Net income for the year was $127.7 million on a GAAP basis, with adjusted net income at $183.8 million. The company reported diluted EPS of $2.21 on a GAAP basis and adjusted diluted EPS of $3.18, exceeding the annual estimate of $2.15.
Balance Sheet and Cash Flow
e.l.f. Beauty Inc (ELF, Financial) ended fiscal 2024 with $108.2 million in cash and cash equivalents and $161.8 million in long-term debt and finance lease obligations. The company also completed the acquisition of Naturium, a high-performance skincare brand, for $333.0 million, furthering its mission to make beauty accessible to all.
Fiscal 2025 Outlook
Looking ahead, e.l.f. Beauty Inc (ELF, Financial) provided an optimistic outlook for fiscal 2025, expecting net sales to increase by 20-22% to approximately $1.23-1.25 billion. The company also anticipates adjusted EBITDA to rise to $285-289 million and adjusted diluted EPS to be in the range of $3.20-3.25.
Conclusion
e.l.f. Beauty Inc (ELF, Financial) has demonstrated exceptional growth and resilience in fiscal 2024, significantly surpassing analyst estimates. The company's strategic initiatives, including the acquisition of Naturium and expansion in international markets, position it well for continued success in the coming fiscal year. Investors and stakeholders will be keenly watching how e.l.f. Beauty Inc (ELF) leverages its strong market position to drive further growth and profitability.
Explore the complete 8-K earnings release (here) from e.l.f. Beauty Inc for further details.
