e.l.f. Beauty, Inc. has recently released its 10-Q report, detailing its financial performance for the period. The company, known for its e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare brands, offers a range of cosmetic and skin care products worldwide. It operates through various channels, including e-commerce platforms in the United States, the United Kingdom, and Canada.
In the 10-Q report, e.l.f. Beauty discussed its management's discussion and analysis of financial condition and results of operations. The company highlighted its mission to provide inclusive, accessible, clean, vegan, and cruelty-free beauty products. It emphasized its ability to deliver premium-quality products at accessible prices and its strong relationships with leading retailers such as Target, Walmart, and Ulta Beauty.
The report also delved into the company's seasonality, noting that its net sales in the third and fourth fiscal quarters are typically higher due to increased purchasing by retailers for the holiday season and customer shelf reset activities. This seasonality impacts the company's working capital and inventory levels.
In terms of financial performance, the report provided specific figures for the three and nine months ended December 31, 2024, compared to the same periods in 2023. Notable highlights include a 31% increase in net sales to $355.3 million for the three months ended December 31, 2024, driven by strength in both retailer and e-commerce channels. Gross profit for the same period increased by 32% to $253.3 million, with gross margin reaching 71%.
Selling, general and administrative expenses (SG&A) were $218.2 million for the three months ended December 31, 2024, representing a 36% increase from the same period in 2023. The report attributed this increase to higher marketing and digital spend, increased compensation and benefits expense, and other operational costs.
The company also detailed other financial metrics, such as interest expense, income tax provision, and working capital. As of December 31, 2024, e.l.f. Beauty had $73.8 million in cash and cash equivalents and borrowing capacity of $10.5 million under its Amended Revolving Credit Facility.
As a result of these announcements, the company's shares have moved -19.6% on the market, and are now trading at a price of $71.13. If you want to know more, read the company's complete 10-Q report here.
