E.l.f. Beauty exceeds fiscal 2016 expectations, provides 2017 guidance

By

Obi Anyanwu

Published
Mar 9, 2017

E.l.f. Beauty on Thursday released the financial results of its fourth quarter and full year 2016. The company reported a 20% increase in net sales and an expansion of gross margin by 500 basis points for the full year.

 
Fourth quarter net sales increased 17% to $76.4 million and gross margin expanded 59%. Adjusted net income increased 36% to $9.4 million, or $0.19 per diluted share, and adjusted EBITDA was $22.1 million compared to $17.6 million in the previous fourth quarter.
 
Net sales for the year were $230 million and gross margin expanded to 58%. Adjusted net income increased 33% to $18.2 million, or $0.36 per diluted share, and adjusted EBITDA was $53.8 million.

Tarang Amin, Chairman and Chief Executive Officer, said, “This strong performance reflects progress executing our mission to make luxurious beauty accessible to all women. Our first to mass innovation and authentic brand appeals to some of the best consumers in cosmetics – young, diverse, make-up enthusiasts. With strength across leading national retailers and our direct business, we expect net sales growth in 2017 of 24% to 28%.”
 
In addition to the net sales growth expectations, e.l.f. Beauty projects its 2017 adjusted net income to increase $21 million to $23 million and adjusted pro forma diluted EPS to range between $0.40 and $0.43.