I published this video last week and wanted to see how well it did before I fully committed to posting oil my blog and so forth. With my whole premise of Bridging Beauty & Business, I want to help my readers and viewers understand more about the business behind beauty. So one way for me to do that is to share what’s happening during various companies earnings calls and business reporting. Several times a year I listen in on earnings calls and various conferences calls regarding the operations, profits and losses of the companies that I invest in or am interested in investing in. One of those companies is E.L.F. Cosmetics.
Of course, most videos on youtube are tutorials, how to’s, and reviews but I wanted to go a bit deeper, especially when the current tariff situation is likely to affect many of my viewers and readers. So here are some of the takeaways from E.L.F.’s earning call that took place on August 7, 2019.
Overall E.L.F. is stronger than ever! Earlier this year they closed all of their stores, 22 to be exact. Since profits have been up 7% from last year. They’ve been steadily increasing their digital presence including increases in video impressions and google search. They’ve also seen double-digit increases in traffic to their website.
Their top products have been the Poreless Putty Primer which was #1 in the month of June in Target, Ulta, Walmart and of course their website. Their 16 hour Camp Concealer has also seen amazing results in sales. E.L.F. has also seen an increase in skincare sales. Year to date skincare sales has been bigger than the full year of 2018.
E.L.F. is also making infrastructure improvements. They are expecting their Ontario distribution facility to be completely automated by the end of September. E.L.F. is also building a U.S. liquid fill facility by the end of the fiscal year. As far as China and the tariffs are concerned, E.L.F. has been strengthening their operations in China by implementing lean manufacturing techniques.
Since E.L.F. has been gradually increasing their prices across the board, starting with brushes, they currently won’t ship prices unless it's at the higher prices. So you’re likely to see price increases from E.L.F. if you’re purchasing through the site but not just yet in stores.
The best news of all is that from E.L.F.’s earnings call was their upgrade to their Beauty Squad program! I’ll be making a video about this in the next few days so in the meantime, watch my current video on how Tariffs will Affect the Price of E.L.F. Cosmetics here,