Elf Beauty On Thursday, the instructions for the overall year lowered after he recorded a profit of 36% and “softer than expected” sales trends in January, which marked a rare downturn for one of the hottest brands from Beauty.
The cosmetics company reported holiday sales that were higher than expected, but profits that just missed estimates, another rare failure for the retailer.
The eleven shares fell by more than 20%on Thursday.
In the third quarter, eleven did in the third quarter compared to what Wall Street expected, based on a survey of LSEG analysts:
- Win each share: 74 cents adapted compared to 75 cents
- Revenue: Expected 355 million US dollars compared to 330 million US dollars
The company's net profit for the three -month period ended on December 31 was $ 17.3 million or 30 cents per share compared to USD 26.9 million or 46 cents per share in the previous year. Without one -time elements, including stock -based remuneration and expenses in connection with the acquisition of naturalium, Elf achieved an adjusted result of 74 cents per share.
Sales rose to 355 million US dollars and rose by around 31%compared to $ 271 million in the previous year.
For the full financial year of the company, in which only a quarter remain, eleven guidelines have published that came under the expectations of Wall Street. The retailer now expects a turnover between 1.3 and 1.31 billion US dollars, under the estimates of 1.34 billion US dollars, according to Street Account. The turnover had previously expected sales between 1.32 and 1.34 billion US dollars.
Eleven now also expects an adjusted result per share between $ 3.27 and $ 3.32, far below the estimates of StreetCCOUNT of USD 3.54. Eleven had previously expected a win of the year between 3.47 and 3.53 US dollars.
The implicit guidance of the company for its current quarter sees even rough. Based on the overall year outlook and the actual figures from the first three quarters, eleven in the current quarter found a result per share of 66 cents and 71 cents, far below the expectations of 97 cents, according to a CNBC analysis and estimates by LSEG.
In an interview with CNBC, CEO Tarang AMIN shrugged that there were major problems in the company, and instead pointed out a general slowdown in the category of beauty, difficult comparisons of the previous year and recent product launches that did not work as well as previous new articles .
With regard to the overall category, Amin said that Mass Cosmetics decreased by 5% in January and that the company suspected that this was driven by two factors: a hangover from the holiday judge and a slowdown of the “social comment” or fewer people who Speak beauty online. This can advance cosmetic sales.
“One, [with] The La forest fires, people I think that they didn't want to be deaf to publish many things while they continued. The second is that Tikkok gave a lot of uncertainty. I have the feeling that the only things that posted people on Tikok was whether it would stay open or remain closed, “said Amin.
Amin also burdened new tariffs against China and how the company is preparing. About 80% of his supply chain are in the region.
Amin said it was too early to say whether eleven will increase prices to compensate for the effects on profits, but the new 10% powder of companies are better than what the company was excited for.
In recent years, eleven has been one of the fastest growing brands in beauty and won with its viral marketing, low prices and the ability to offer high-quality, more responsible “dupes” of prestige products.
While the brand is still growing and says that it still exceeds the overall category, this growth pace begins to slow down and the latest product launches have not increased sales in the same way as it has done in the past.
Amin said the company preferred to pursue a “prudent” approach to instructions, and still holds it as a victory that eleven exceeds the overall category.
He said the company uses the profits that it generates to invest in improvements in inventory management programs, infrastructure and international expansion.
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