e.l.f. Net sales in the first fiscal quarter increased by 8%

On August 5, the American beauty company e.l.f. announced its first quarter results for the 2021 fiscal year.
 
The financial report shows that in the three months ending June 30, 2020, e.l.f. net sales rose 8% to 64.53 million U.S. dollars (about 448 million yuan). The main reason for the growth is the strong digital business, which can partially offset the losses caused by the closure of certain retail stores in the United States and internationally due to COVID-19.

The increase in gross profit margin from 62% to 67% was mainly due to the shift in sales mix to elfcosmetics.com, the price increase implemented last summer, and the increase in profitability, innovation and cost savings. The favorable exchange rate changes partially offset The impact of tariffs on Chinese imports.

In addition, elf's first quarter financial report also showed that its sales and management expenses and other expenses were 40.3 million U.S. dollars (about 280 million yuan), accounting for 63% of net sales. As of June 30, 2019, three During the month, net sales were US$32.1 million (approximately RMB 223 million), accounting for 54% of net sales. The financial report shows that the main reason for its growth is the increase in employee compensation costs. e.l.f. Increasing operating costs in terms of company marketing, digital and innovation capabilities, agency competition costs, e-commerce sales growth, and related annual employee numbers brought by marketing and digital investment have contributed to the increase in sales and management expenses.
 
At the same time, elf’s operating income in the first quarter was US$3.009 million (approximately RMB 20.898 million), and its net profit was US$1.512 million (approximately RMB 10.501 million), compared with US$ 6.928 million (approximately RMB in the same period in 2019). 48.115 million yuan) and 3.706 million US dollars (approximately 25.736 million yuan) decreased.
 
It is worth noting that at the same time as the financial report was announced, elf announced the creation of a groundbreaking partnership with 15-time Grammy Award winner, producer, actress, and New York Times best-selling author Alicia Keys New lifestyle beauty brand.