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EX - 99.1 2 q12022er - 991.htm EX - 99.1 E.L.F. BEAUTY e.l.f. Beauty Announces First Quarter Fiscal 2022 Results - Delivered 50 % Net Sales Growth - Gained 20 Basis Points of Market Share in Nielsen U.S. Color Cosmetics OAKLAND , California ; August 4 , 2021 June 30 , 2021 . Raises Fiscal 2022 Guidance - Exhibit 99.1 e.l.f. Beauty ( NYSE : ELF ) today announced results for the three months ended " I'm proud of the e.l.f. Beauty team for delivering exceptional first quarter results , highlighted by 50 % net sales growth , " said Tarang Amin , e.l.f. Beauty's Chairman and Chief Executive Officer . " We've seen consumer demand for color cosmetics inflect positively and we continue to outperform our competitors . In the first quarter , e.l.f. Cosmetics was the only top 5 U.S. color cosmetics brand to post growth and gain share relative to pre - pandemic levels , per Nielsen . Our products are resonating and our brand momentum and category outperformance is strong . " " We're raising our fiscal 2022 outlook given our outstanding first quarter results and our expectations for continued momentum across our brand portfolio , " said Mandy Fields , e.l.f. Beauty's Chief Financial Officer . " Our marketing and digital initiatives are delivering strong return on investment , and we're leaning into these programs to fuel our growth . " Three Months Ended June 30 , 2021 Results For the three months ended June 30 , 2021 , compared to the three months ended June 30 , 2020 : Net sales increased 50 % to $ 97.0 million , primarily driven by strength in our national and international retailers . Gross margin decreased approximately 340 basis points to 63.8 % , primarily driven by unfavorable foreign exchange rates , elevated transportation costs and an increase in inventory adjustments . Selling , general and administrative expenses ( " SG & A " ) increased $ 10.4 million to $ 50.7 million or 52.3 % of net sales . Adjusted SG & A ( SG & A excluding the items identified in the reconciliation table below ) increased $ 12.4 million to $ 45.6 million , or 46.9 % of net sales . The increase in SG & A was primarily due to investments in marketing and digital and increased operational costs . The provision for income taxes was $ 1.5 million . Net income was $ 8.3 million on a GAAP basis . Adjusted net income ( net income excluding the items identified in the reconciliation table below ) was $ 14.3 million . Diluted earnings per share were $ 0.15 on a GAAP basis . Adjusted diluted earnings per share ( diluted earnings per share calculated with adjusted net income excluding the items identified in the reconciliation table below ) were $ 0.27 . Adjusted EBITDA ( EBITDA excluding the items identified in the reconciliation table below ) was $ 21.7 million or 22.4 % of net sales , up 40 % year over year .