Q3 FY 2021 EARNINGS WEBCAST FEBRUARY 3, 2021 - Seeking Alpha
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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
TODAY’S AGENDA
1 2 3
Q3 FY 2021 GROWTH STRATEGIC
RESULTS OPPORTUNITIES FRAMEWORK
EIGHT CONSECUTIVE QUARTERS OF NET SALES GROWTH
+16%
+11%
+10%
+7% +8% +8% +7%
+3%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY 19 FY 20 FY 20 FY 20 FY 20 FY 21 FY 21 FY 21
NET SALES GROWTH BY QUARTER. FY 19 - FY 20 GROWTH RATES EXCLUDE E.L.F. STORES (CLOSED IN FEBRUARY 2019)
Q3 FY 21 RESULTS $ 89 M $ 18 M NET ADJUSTED SALES EBITDA + 10 % 21 % GROWTH MARGIN
OUR SUPERPOWERS CRUELTY PREMIUM ACCESSIBLE UNIVERSAL FREE QUALITY PRICES APPEAL
EXECUTING ON OUR FIVE STRATEGIC IMPERATIVES DRIVE DOUBLE LEADING COST BRAND DOWN I N N O VAT I O N PRODUC- S AV I N G S DEMAND D I G I TA L TIVITY
DRIVE BRAND DEMAND
SALES TREND - TOP 5 COLOR COSMETICS BRANDS
0
E.L.F.
-10 -2%
-20 MAYBELLINE
L’OREAL
-17% -18%
COVERGIRL
-30
-25%
-40
Maybelline L'Oreal Cover Girl Revlon
REVLON e.l.f.
-40%
NIELSEN XAOC LATEST 12 WEEKS ENDING 12/26/2020SHARE TR END (BPS) - TOP 5 COLOR COSMETICS BRANDS
E . L . F.
E.L.F.
150
MAYBELLINE +100 5.9%
L’OREAL +50 SHARE
75
+10
0
-75
COVERGIRL
-150 -70
-225
REVLON
-300 -220
Revlon Cover Girl L'Oreal Maybelline e.l.f.
NIELSEN XAOC LATEST 12 WEEKS ENDING 12/26/2020NEW 9M FOLLOWERS +11% GROWTH
EMV GROWTH
+16%
EMV = EARNED MEDIA VALUE. SOURCE: TRIBE DYNAMICSCONTINUING TO EXPLORE NEW FRONTIERS
NEWSMAKER OF THE YEAR 2020 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 10 % 16 % Q3 FY 20 Q3 FY 21
~60 %
NEW CONSUMERS
SHOPPING
ELFCOSMETICS.COM
% OF NEW CONSUMERS PURCHASING ON ELFCOSMETICS.COM,
FROM 10/1/2020 TO 12/31/2020BEAUTY SQUAD LOYALTY PROGRAM
2.3M
MEMBERS
~ 40 %
GROWTH
~ 70 %
OF SALES ON ELFCOSMETICS.COM
BEAUTY SQUAD LOYALTY MEMBERS AS OF 12/31/2020 | Q3 FY 21 GROWTH IN TOTAL ENROLLMENT VERSUS PYBEAUTY SQUAD EARLY ACCESS
THE UNIQUENESS OF KEYS SOULCARE CONTENT CONVERSATION COMMUNITY
INNOVATION
STRENGTH IN CORE SEGMENTS
#1 #1 #2 #2 #2
BRUSHES PRIMERS CONCEALER EYEBROW SPONGES
$ SHARE $ SHARE $ SHARE UNIT SHARE $ SHARE
NIELSEN XAOC LATEST 12 WEEKS ENDING
12/26/2020, EXCLUDES PRIVATE LABELPOWERHOUSE 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 CreamCAMO CC CREAM $14 VS. A PRESTIGE EQUIVALENT $40
SKI N C AR E C ONS U M P T I O N
+17%
E.L.F.
-5%
SKINCARE
C AT E G O RY
YOY CONSUMPTION GROWTH. NIELSEN XAOC LATEST 12 WEEKS ENDING 12/26/2020SKINCARE PENETRATION
8% ~25 %
TR ACKED ELFCOSMETICS.COM
CHANNELS AMAZON.COM
LATEST 12 WEEKS THROUGH DECEMBER 2020OFFERINGS THAT CARE FOR THE WHOLE SELF
DERMATOLOGIST-DEVELOPED, SKIN-NOURISHING SOUL-NURTURING
SOUL-NURTURING RITUALS
CLEAN FORMULAS INGREDIENTS RITUALS
DR. RENÉE SNYDERLEADING PRODUCTIVITY
FIT M O RE ITE MS
O N SHE LF 3 PATE NTS
PROJECT UNICORN
E L E VAT E B R A N D
P R E S E N TAT I O N
B ETTER D I S P LAYELIMINATED 650K LBS OF PACKAGING
SHELF SPACE EXPANSION
EXPANDED FALL 2020
EXPANDING SPRING 2021
EXPANDING SPRING 2021
EXPANDING SPRING 2021
29 COUNTRIES U.S. U.K. 8 COUNTRIES (ONLINE) (ONLINE & IN STORES) (ONLINE) (ONLINE & IN STORES)
COST SAVINGS
GR O S S M ARG IN
64%
61% 61% 61%
58%
52%
47%
FY14 FY15 FY16 FY17 FY18 FY19 FY20
FY14–FY18 REPRESENT DECEMBER 31 YEAR END, FY19–FY20 REPRESENT MARCH 31 YEAR ENDMITIGATING FX IMPACT
PRICING
SUPPLIER CONCESSIONS
SG&A LEVERAGESTRATEGIC FRAMEWORK
ACCESSIB LE DISTRIBUTION PRESTIGE PRICE
EXC LUS IVE DIST RIB U TION
~$20-40 AUR
~$20 AUR
~$5 AUR MASS PRICEMOVING AT E.L.F. SPEED DI G I TAL C O R E VA L U E C O NTINU E TO G A IN STREN G TH PROPOSITION MA RK E T SHA RE
MANDY FIELDS SENIOR VICE PRESIDENT & CHIEF FINANCIAL OFFICER
TODAY’S AGENDA
1 2
Q 3 FY 2021 F I S CA L 2 0 2 1
RE SU LTS O UT L O O KQ3 FY 21 NET SALES
+10%
$ 89
MILLIONQ3 FY 21 NET SALES DRIVERS
NATIO NA L O RDE R
E -C O MM ER C E IN T E R N AT I O N A L
RE TA ILE RS TIM INGQ3 FY 21 RESULTS
64 %
GROSS MARGINADJUSTED SG&A 44 % 49 % Q3 FY 20 Q3 FY 21
MARKETING & DIGITAL
INVESTMENT
15 %
12 %
Q3 FY 20 Q3 FY 21Q3 FY 21 RESULTS
21%
MARGIN
$ 18M
ADJUSTED EBITDAAD J US TED N E T I N C O M E A DJU STE D E PS
$12M $12M $0.24 $0.22
Q3 FY 20 Q3 FY 21 Q3 FY 20 Q3 FY 21STRONG LIQUIDITY
$ 85
MILLION
C AS H O N H A N D + R E V O LVING C RE DIT FA C ILITYI N V E N T O RY DRIVE RS
NEW BRANDS
SPACE EXPANSION
FXC A S H P R I O RITIE S I N VES TI N G I N KEYS W E LL PE O PLE FI VE S TR ATEG I C S O U L C A RE BRA ND I M P ER ATI VES LAUNCH RE C HA RG E
NET SALES ADJUSTED EBITDA
+7% TO 9% $59M TO $60M
RAISED
FISCAL 2021
GUIDANCE
ADJUSTED EPS ADJUSTED NET INCOME
$0.63 TO $0.64 $33M TO $34MQ 4 N E T S A L E S DRIVE RS
KEYS SOULCARE
MERCHANDISING
ORDER TIMING
TOUGHER COMPS
STIMULUS
MACRO VOLATILITY
BUSINESS MOMENTUMADJUSTED EBITDA
$ 59 M
TO
$ 60 M
FY 2021 GUIDANCEMITIGATING FX IMPACT PRICE INCREASES COST SAVINGS SG&A LEVERAGE
LONG-TERM ECONOMIC MODEL
MID TO OUTPACE
HIGH SINGLE SALES
DIGITS GROWTH
NET SALES CAGR ADJUSTED EBITDA CAGR
CAGR REPRESENTS EXPECTATIONS OVER A 3 YEAR TIME FRAME, THROUGH FY 2024I N C L U S I V E . A C C E S S I B L E . C RU E LTY FRE E .
THANK YOU
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