Download - Q3 FY 2021 EARNINGS WEBCAST FEBRUARY 3, 2021
Q3 FY 2021 EARNINGS WEBCAST FEBRUARY 3, 2021
As a reminder, this call contains forward-looking statements that are based on management’s expectations – including those relating to the category
trends and longer-term outlook – and are subject to known and unknown risks and uncertainties, and therefore, actual results may differ materially.
Important factors that may cause actual results to differ are detailed in today’s press release and the company’s SEC filings.
In addition, the company’s presentation today includes information presented on a non-GAAP basis. We refer you to today’s press release for
a reconciliation of the differences between the non-GAAP presentation and the most directly comparable GAAP measures.
TARANG P. AMIN CHAIRMAN &
CHIEF EXECUTIVE OFFICER
STRATEGIC FRAMEWORK
3
GROWTH OPPORTUNITIES
2
Q3 FY 2021 RESULTS
1
TODAY’S AGENDA
+7%+7%
+11%
+16%
+8%
+3%
+8%
Q1 FY 20
Q2 FY 20
Q3 FY 20
Q4 FY 20
Q4 FY 19
Q1 FY 21
Q2 FY 21
NET SALES GROWTH BY QUARTER. FY 19 - FY 20 GROWTH RATES EXCLUDE E.L.F. STORES (CLOSED IN FEBRUARY 2019)
+10%
Q3 FY 21
EIGHT CONSECUTIVE QUARTERS OF NET SALES GROWTH
GROWTH MARGIN21%+10%
$89MNET
SALESADJUSTED
EBITDA
$18M
Q3 FY 21 RESULTS
PREMIUM QUALITY
CRUELTY FREE
UNIVERSAL APPEAL
OUR SUPERPOWERS
ACCESSIBLE PRICES
DRIVE BRAND
DEMAND
DOUBLE DOWN
DIGITAL
COST SAVINGSINNOVATION
LEADING PRODUC-
TIVITY
EXECUTING ON OUR FIVE STRATEGIC IMPERATIVES
DRIVE BRAND DEMAND
SALES TREND - TOP 5 COLOR COSMETICS BRANDS
-40
-30
-20
-10
0
Maybelline L'Oreal Cover Girl Revlon e.l.f.
COVERGIRL -25%
MAYBELLINE -17%
REVLON -40%
E.L.F. -2%
L’OREAL -18%
NIELSEN XAOC LATEST 12 WEEKS ENDING 12/26/2020
-300
-225
-150
-75
0
75
150
Revlon Cover Girl L'Oreal Maybelline e.l.f.
COVERGIRL -70
MAYBELLINE +50
E.L.F. +100
L’OREAL +10
REVLON -220
5.9%SHARE
E.L.F.
SHARE TREND (BPS) - TOP 5 COLOR COSMETICS BRANDS
NIELSEN XAOC LATEST 12 WEEKS ENDING 12/26/2020
NEW
9MFOLLOWERS+11% GROWTH
+16% EMV GROWTH
EMV
= E
ARN
ED M
EDIA
VA
LUE.
SO
URC
E: T
RIBE
DY
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MIC
S
CONTINUING TO EXPLORE NEW FRONTIERS
NEWSMAKER OF THE YEAR2020 NEWSMAKER
OF THE YEAR
AD AGE TOP 10 MARKETERS
OF THE YEAR
FIRST RITUAL LAUNCHED
IN DECEMBER
COLLECTION EXPANDED IN JANUARY
>10B PRESS IMPRESSIONS
100M SOCIAL FOLLOWERS
BRINGING THE BRAND RECHARGE TO LIFE
DOUBLE DOWN ON DIGITAL
~TRIPLE DIGIT
GROWTH
Q3 FY 21 YEAR-TO-DATE DIGITAL CONSUMPTION YEAR-OVER-YEAR GROWTH
DIGITAL COMMERCE PENETRATION
Q3 FY 20 Q3 FY 21
10 % 16 %
% OF NEW CONSUMERS PURCHASING ON ELFCOSMETICS.COM, FROM 10/1/2020 TO 12/31/2020
~60%NEW CONSUMERS
SHOPPING ELFCOSMETICS.COM
GROWTH
~40%
MEMBERS2.3M
BEAUTY SQUAD LOYALTY MEMBERS AS OF 12/31/2020 | Q3 FY 21 GROWTH IN TOTAL ENROLLMENT VERSUS PY
OF SALES ON ELFCOSMETICS.COM
~70%
BEAUTY SQUAD LOYALTY PROGRAM
BEAUTY SQUAD EARLY ACCESS
CONTENT COMMUNITYCONVERSATION
THE UNIQUENESS OF KEYS SOULCARE
INNOVATION
STRENGTH IN CORE SEGMENTS
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$ SHAREBRUSHES
#1$ SHAREPRIMERS
#1$ SHARE
CONCEALER
#2UNIT SHAREEYEBROW
#2$ SHARE
SPONGES
#2
POWERHOUSE INNOVATION ENGINE
Make this a Camo CC cream slide, maybe with some of our internal video showing what it is,
the benefits, and before/after, and also include some TikTok videos showing consumers
comparing it to the IT Cosmetics CC Cream
CAMO CC CREAM $14 VS. A PRESTIGE EQUIVALENT $40
+17%E.L.F.
SKINCARE CONSUMPTION
YOY CONSUMPTION GROWTH. NIELSEN XAOC LATEST 12 WEEKS ENDING 12/26/2020
-5%S K I N C A R E C AT E G O RY
ELFCOSMETICS.COM AMAZON.COM
8% ~25%
TRACKED CHANNELS
SKINCARE PENETRATION
LATEST 12 WEEKS THROUGH DECEMBER 2020
DERMATOLOGIST-DEVELOPED, CLEAN FORMULAS
DR. RENÉE SNYDER
SKIN-NOURISHING INGREDIENTS
SOUL-NURTURING RITUALSSOUL-NURTURING RITUALS
OFFERINGS THAT CARE FOR THE WHOLE SELF
LEADING PRODUCTIVITY
PROJECT UNICORN
ELEVATE BRAND PRESENTATION
3 PATENTS
BETTER DISPLAY
FIT MORE ITEMS ON SHELF
ELIMINATED 650K LBS OF PACKAGING
LBS
SHELF SPACE EXPANSION
EXPANDED FALL 2020
EXPANDING SPRING 2021
EXPANDING SPRING 2021
EXPANDING SPRING 2021
29 COUNTRIES (ONLINE)
U.S. (ONLINE & IN STORES)
U.K. (ONLINE)
8 COUNTRIES (ONLINE & IN STORES)
COST SAVINGS
GROSS MARGIN
FY14 FY17 FY19
FY14–FY18 REPRESENT DECEMBER 31 YEAR END, FY19–FY20 REPRESENT MARCH 31 YEAR END
47%
64%
FY16FY15
52%
58%
61% 61% 61%
FY20FY18
PRICING
SUPPLIER CONCESSIONS
SG&A LEVERAGE
MITIGATING FX IMPACT
STRATEGIC FRAMEWORK
EXC
LUS
IVE D
ISTR
IBU
TION
AC
CES
SIB
LE D
ISTR
IBU
TIO
NPRESTIGE PRICE
MASS PRICE~$5 AUR
~$20 AUR
~$20-40 AUR
MOVING AT E.L.F. SPEED
CORE VALUE PROPOSITION
CONTINUE TO GAIN MARKET SHARE
DIGITAL STRENGTH
MANDY FIELDS SENIOR VICE PRESIDENT & CHIEF FINANCIAL OFFICER
FISCAL 2021 OUTLOOK
2
Q3 FY 2021 RESULTS
1
TODAY’S AGENDA
$89 MILLION
+10%
Q3 FY 21 NET SALES
Q3 FY 21 NET SALES DRIVERS
E-COMMERCE INTERNATIONAL NATIONAL RETAILERS
ORDER TIMING
64% GROSS MARGIN
Q3 FY 21 RESULTS
44%49%
ADJUSTED SG&A
Q3 FY 20 Q3 FY 21
15%
MARKETING & DIGITAL INVESTMENT
Q3 FY 20 Q3 FY 21
12%
$18M ADJUSTED EBITDA
21%MARGIN
Q3 FY 21 RESULTS
Q3 FY 20
$12M
Q3 FY 21
$12M
ADJUSTED NET INCOME
$0.22
Q3 FY 21Q3 FY 20
$0.24
ADJUSTED EPS
CASH ON HAND + REVOLVING CREDIT FACILITY
$85 MILLION
STRONG LIQUIDITY
INVENTORY DRIVERS
NEW BRANDS
SPACE EXPANSION
FX
INVESTING IN FIVE STRATEGIC
IMPERATIVES
KEYS SOULCARE LAUNCH
LL PEOPLE BRAND
RECHARGE
EW
CASH PRIORITIES
RAISED FISCAL 2021 GUIDANCE
ADJUSTED EBITDA $59M TO $60M
ADJUSTED EPS $0.63 TO $0.64
NET SALES +7% TO 9%
ADJUSTED NET INCOME $33M TO $34M
Q4 NET SALES DRIVERS
MACRO VOLATILITY
TOUGHER COMPS
MERCHANDISING
BUSINESS MOMENTUM
STIMULUS
ORDER TIMING
KEYS SOULCARE
FY 2021 GUIDANCE
$59MTO
$60M
ADJUSTED EBITDA
PRICE INCREASES
COST SAVINGS
SG&A LEVERAGE
MITIGATING FX IMPACT
LONG-TERM ECONOMIC MODEL
MID TO HIGH SINGLE
DIGITS
NET SALES CAGR
OUTPACE SALES
GROWTH
ADJUSTED EBITDA CAGR
CAGR REPRESENTS EXPECTATIONS OVER A 3 YEAR TIME FRAME, THROUGH FY 2024
INCLUSIVE. ACCESSIBLE. CRUELTY FREE.
THANK YOU