e.l.f. Beauty has announced it will be exiting the brick-and-mortar game, with the company closing all 22 of its stores to focus on expanding in national retailer and digital channels.
e.l.f. chairman and CEO, Tarang Amin, admitted that “2018 was a challenging year” that saw net sales fall one per cent to US$267 million. In fact, e.l.f.’s stores contributed to five per cent of company sales in 2018.
For the fourth quarter, its net income totalled US$9.6 million, which was down from US$21.5 million in the year-ago period. Adjusted earnings per share (EPS) was at US 30 cents, beating analysts’ estimates of US 21 cents. Sales were at US$78.6 million and were down from US$81.6 million last year.
In addition to store closures, e.l.f. has revealed its president and CFO, John Bailey, will leave his role on March 31 2019. The beauty company is currently working with a national search firm to find a new CFO, and Bailey’s responsibilities as president will be absorbed by Amin and members of the executive team.
“John has been a terrific strategic partner to me and the entire executive team from inception through the IPO and to this stage in the company’s journey,” Amin said. “I thank him for his service and wish him the very best as he returns to the investment world.”
e.l.f. is also moving its fiscal year from January 1 through to December 31, to April 1 through to March 31. The move is expected to better align the company with its largest national retailer customers, Walmart and Target, which reset their cosmetics shelves every February or March.
