E.l.f. Beauty posted an 11 percent sales dip for the third quarter.
The business brought in $63.9 million in net sales for the quarter, due in part to a dip in sales to discount channels, the company said. Net income also fell, to $8.4 million, or 17 cents per diluted share, from $9.6 million, or 20 cents per diluted share in the prior-year period.
For the nine months ended Sept. 30, E.l.f. increased net sales by $600,000 to $188.9 million from the prior-year period. That gain was driven by growth in national retailers, and offset by a decline in sales to discount channels. Net income decreased to $20.3 million from $22.4 million. Earnings per diluted share were 41 cents, down year-over-year from 45 cents.
“Our third-quarter results reaffirm our confidence in our 2018 guidance,” stated Tarang Amin, chairman and chief executive officer. “We delivered growth in the specialty channel and demonstrated disciplined expense and balance sheet management. We are aggressively pursuing three strategic initiatives to improve business trends in tracked channels: thoughtfully increasing investment in the E.l.f. brand, focusing on key items, and optimizing 2019 shelf sets.”