Elf Beauty (ELF) earnings Q4 2024

Elven beauty On Wednesday, it posted its first billion-dollar fiscal year as sales rose 77%, but the retailer's shares fell as it said it expects growth to slow.

The Eyes, Lip, Face company, known for its viral marketing and ability to win over younger consumers, issued guidance that came in lower than analysts forecast.

Here's how Elf Beauty did in the fourth fiscal quarter, compared to what Wall Street expected, based on a survey of analysts by LSEG:

• Profit per share: 53 cents adjusted versus 32 cents expected
• Gain: $321.1 million versus $292.6 million expected

The company reported net income for the three-month period ended March 31 at $14.53 million, or 25 cents per share, compared with $16.25 million, or 29 cents per share, a year earlier. Excluding one-off items, Elf posted a profit of 53 cents per share.

Revenue rose to $321.1 million, up about 71% from $187.4 million a year earlier.

For the full year, the company's revenue grew to $1.02 billion, an increase of 77% from the same period last year.

Elf Beauty has been on a tear over the past year, posting high double-digit percentage sales increases quarter after quarter as consumers flock to its low-priced beauty products, either through its own website or at retailers like Walmart And Goal.

In a statement, Elf CEO Tarang Amin said he believes the company is still in the “early stages” of its growth story and expects more to come in cosmetics, skin care and in international markets. The guidance reflects that sentiment, but the company still expects to grow more slowly than Wall Street expected.

Elf expects net sales to be between $1.23 billion and $1.25 billion, which would be an increase of 20% to 22%. That's less than the $1.27 billion, or 27.4% increase, that analysts had expected.

The company forecasts adjusted net income to be between $187 million and $191 million, and adjusted earnings to be between $3.20 and $3.25 per share. That's less than the $3.51 that analysts expected, according to LSEG.

Last month, Ulta Beauty CEO Dave Kimbell threw cold water on the red-hot beauty category when he warned that demand for cosmetics was cooling, sending shares down 15% that day and hitting Elf's stock. Estee Lauder And Coty.

“We have seen a slowdown in the overall category,” Kimbell said at an investor conference hosted by JPMorgan Chase. “We came into the year – and we talked about this on our [earnings] called a few weeks ago – expecting the category to moderate. It has [had]As I said: a number of years of strong growth. We didn't expect growth to continue at the pace it has.”

He added that the delay was “a little earlier” and “a little bigger than we thought.”

How much Ulta's sales have slowed remains to be seen. The beauty giant will announce profits next week.

Read Elf's full earnings call here.