E.l.f. Beauty reported another sales gain for its first fiscal quarter.
The company’s net income was $2.2 million, down from $3.8 million in the prior-year period. Net sales were $60.6 million, up 15 percent year-over-year from $52.7 million. Adjusted net income was up 40 percent, to $4.4 million, 9 cents per diluted share, compared with $3.1 million or 6 cents per diluted share.
“We are pleased to report a strong start to the year as E.l.f. grew net sales by 15 percent, expanded gross margin nearly 750 basis points and made progress toward our mission of making luxurious beauty accessible for all,” said chief executive officer Tarang Amin. “This performance is notable given the significant amount of shipments to customers for shelf resets in [the first quarter of 2016].”
E.l.f.’s selling, general and administrative expenses increased to 54 percent of net sales, up from 44 percent, because of “continued investment to support long-term growth,” according to the company.
E.l.f. is projected net sales between $285 million and $295 million for the fiscal year, with net income between $21 million and $23 million, and adjusted pro forma diluted earnings per share of 40 cents to 43 cents per share.