Latest news with #SG&A
Yahoo
2 days ago
- Business
- Yahoo
Ulta Beauty Soars 11.2% on Earnings Beat and Upgraded Outlook
Ulta Beauty (NASDAQ:ULTA) just wrapped its first quarter with a better-than-expected finish, pushing past Wall Street's forecasts with $2.85 billion in revenue and earnings of $6.70 per share. The earning results drove the share price up 11.2% at 12.35pm today. The beauty retailer saw modest gains in foot traffic and average ticket size, but what really stood out was management's tonemeasured optimism, with a side of realism. CEO Kecia Steelman said their new "Ulta Beauty Unleashed" strategy is gaining traction, but also flagged a fluid environment that could reshape consumer demand as the year plays out. The company dialed up its full-year guidance slightly, now projecting up to 1.5% comp sales growth (up from 1%) and bumping its EPS range to $22.65$23.20. Still, some signals warrant a second look: gross margin dipped slightly to 39.1%, SG&A climbed to nearly 25% of sales, and inventories jumped 11%likely tied to new brand launches and store expansion. Ulta also maintained its full-year operating margin forecast at 11.7%11.8%, suggesting no major shifts in underlying cost dynamics. One thing that hasn't slowed down? Buybacks. Ulta scooped up nearly $359 million of its own shares this quarter, with another $2.3 billion left to deploy. The store count rose to 1,451 locations, and plans for 60 net new stores are holding steady. For now, the business looks steadybut how consumer spending evolves heading into the second half could be what defines the stock's next move. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 days ago
- Business
- Business Wire
Caleres Reports First Quarter 2025 Results
ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the first quarter 2025. 'While our brands continue to resonate with consumers and both segments of our business gained market share in the period, our first quarter results fell short of expectations. February sales were particularly weak, and although trends improved in March and April, overall performance was below plan. Furthermore, operating earnings were pressured by lower gross margins, increased reserves, and costs to cancel and move inventory,' said Jay Schmidt, president and chief executive officer. 'Despite the weak quarter, we did experience improving momentum at retail and growth in our strategically important international business.' 'The operating environment has become more challenging, and we must redouble our efforts to drive growth and profitability. In the near term, we are focused on controlling what we can control, including optimizing our sourcing strategy. Additionally, we expect to decrease SG&A by $15 million on an annualized basis through structural expense cuts. We are viewing this as an opportunity to strengthen Caleres and position our company for the future,' said Schmidt. 'Longer term, we are confident in our ability to get back on track, execute our strategic plan, invest to fuel our growth initiatives, and drive sustained value for our shareholders.' First Quarter 2025 Results (13-weeks ended May 3, 2025 compared to 13-weeks ended May 4, 2024) Net sales were $614.2 million, down 6.8% from the first quarter of 2024; Famous Footwear segment net sales decreased 6.3%, with comparable sales down 4.6%; Brand Portfolio segment net sales declined 6.9%; Direct-to-consumer sales represented approximately 70% of total net sales; Gross profit was $278.7 million, while gross margin was 45.4%, down 150 basis points versus last year; Famous Footwear segment gross margin of 45.3%, down 80 basis points versus last year; Brand Portfolio segment gross margin of 43.8%, down 280 basis points versus last year; SG&A as a percentage of net sales was 43.4%, up 300 basis points versus last year, reflecting deleverage on the sales decline; Net earnings of $6.9 million, or earnings per diluted share of $0.21, and adjusted net earnings of $7.4 million, or adjusted earnings per diluted share of $0.22, compared to net earnings of $30.9 million, or earnings per diluted share of $0.88 in the first quarter of 2024; Inventory was up 8.1% compared to the first quarter of 2024; Borrowings under the asset-based revolving credit facility were $258.5 million at the end of the period, up $67.5 million from the first quarter of 2024. Capital Allocation Update During the quarter, Caleres continued to invest in value-driving growth opportunities while at the same time returning cash to shareholders through our dividend. We also repurchased 300,000 shares at an average price of $16.81 per share to offset dilution from stock-based compensation. Given the current challenging environment and the planned acquisition of Stuart Weitzman later this year, the company is re-evaluating its capital spending plans. Caleres will continue to consider business performance and market conditions as it evaluates all opportunities for free cash flow as the year progresses, including share repurchases. Fiscal 2025 Outlook Given the uncertainty in the environment, the company is suspending guidance. Investor Conference Call Caleres will host a conference call at 10:00 a.m. ET today, Thursday, May 29, 2025. The webcast and associated slides will be available at A live conference call will be available at (877) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay will also be available at for a limited period. Investors can access the replay through June 12, 2025 by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13753803. Definitions All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively. Non-GAAP Financial Measures and Metrics In this press release, the company's financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures and metrics. In particular, the company provides earnings before interest, taxes, depreciation and amortization (EBITDA) and estimated and future operating earnings, net earnings and earnings per diluted share, adjusted to exclude certain gains, charges and recoveries, which are non-GAAP financial measures, and the debt to EBITDA leverage ratio, which is a non-GAAP financial metric. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures and metrics help identify underlying trends in the company's business and provide useful information to both management and investors by excluding certain items that may not be indicative of the company's core operating results. These measures and metrics should not be considered a substitute for or superior to GAAP results. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This press release contains certain forward-looking statements and expectations regarding the company's future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changes in United States and international trade policies, including tariffs and trade restrictions; (ii) changing consumer demands, which may be influenced by general economic conditions and other factors; (iii) inflationary pressures and supply chain disruptions; (iv) rapidly changing consumer preferences and purchasing patterns and fashion trends; (v) supplier concentration, customer concentration and increased consolidation in the retail industry; (vi) intense competition within the footwear industry; (vii) foreign currency fluctuations; (viii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (ix) cybersecurity threats or other major disruption to the company's information technology systems including those related to our ERP upgrade; (x) transitional challenges with acquisitions and divestitures; (xi) the ability to accurately forecast sales and manage inventory levels; (xii) a disruption in the company's distribution centers; (xiii) the ability to recruit and retain senior management and other key associates; (xiv) the ability to secure/exit leases on favorable terms; (xv) the ability to maintain relationships with current suppliers; (xvi) changes to tax laws, policies and treaties; (xvii) our commitments and shareholder expectations related to responsible business initiatives; (xviii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xix) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company's Annual Report on Form 10-K for the year ended February 1, 2025, which information is incorporated by reference herein and updated by the company's Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change. (Unaudited) Thirteen Weeks Ended ($ thousands, except per share data) May 3, 2025 May 4, 2024 Net sales $ 614,221 $ 659,198 Cost of goods sold 335,527 350,103 Gross profit 278,694 309,095 Selling and administrative expenses 266,483 266,337 Restructuring and other special charges, net 627 — Operating earnings 11,584 42,758 Interest expense, net (3,795 ) (3,778 ) Other income, net 686 992 Earnings before income taxes 8,475 39,972 Income tax provision (2,529 ) (9,174 ) Net earnings 5,946 30,798 Net loss attributable to noncontrolling interests (997 ) (141 ) Net earnings attributable to Caleres, Inc. $ 6,943 $ 30,939 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 0.21 $ 0.88 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 0.21 $ 0.88 Expand SCHEDULE 2 CALERES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Expand (Unaudited) ($ thousands) May 3, 2025 May 4, 2024 ASSETS Cash and cash equivalents $ 33,139 $ 30,709 Receivables, net 160,433 164,865 Inventories, net 573,615 530,570 Property and equipment, held for sale 16,777 16,777 Prepaid expenses and other current assets 62,428 62,415 Total current assets 846,392 805,336 Lease right-of-use assets 559,713 565,822 Property and equipment, net 185,069 168,154 Goodwill and intangible assets, net 189,515 200,551 Other assets 127,007 121,247 Total assets $ 1,907,696 $ 1,861,110 LIABILITIES AND EQUITY Borrowings under revolving credit agreement $ 258,500 $ 191,000 Trade accounts payable 212,514 267,388 Lease obligations 118,781 120,872 Other accrued expenses 180,461 185,105 Total current liabilities 770,256 764,365 Noncurrent lease obligations 472,981 482,163 Other liabilities 51,555 37,553 Total other liabilities 524,536 519,716 Total Caleres, Inc. shareholders' equity 605,179 570,304 Noncontrolling interests 7,725 6,725 Total equity 612,904 577,029 Total liabilities and equity $ 1,907,696 $ 1,861,110 Expand SCHEDULE 3 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Expand (Unaudited) Thirteen Weeks Ended ($ thousands) May 3, 2025 May 4, 2024 OPERATING ACTIVITIES: Net cash (used for) provided by operating activities $ (5,657 ) $ 36,074 INVESTING ACTIVITIES: Purchases of property and equipment (20,542 ) (9,802 ) Capitalized software (604 ) (524 ) Net cash used for investing activities (21,146 ) (10,326 ) FINANCING ACTIVITIES: Borrowings under revolving credit agreement 135,500 118,500 Repayments under revolving credit agreement (96,500 ) (109,500 ) Dividends paid (2,362 ) (2,442 ) Acquisition of treasury stock (5,044 ) (15,070 ) Issuance of common stock under share-based plans, net (3,067 ) (7,847 ) Contributions by noncontrolling interests 1,750 — Net cash provided by (used for) financing activities 30,277 (16,359 ) Effect of exchange rate changes on cash and cash equivalents 29 (38 ) Increase in cash and cash equivalents 3,503 9,351 Cash and cash equivalents at beginning of period 29,636 21,358 Cash and cash equivalents at end of period $ 33,139 $ 30,709 Expand (Unaudited) Trailing Twelve Months Ended May 3, 2025 May 4, 2024 Pre-Tax Net Earnings (Loss) Pre-Tax Net Earnings (Loss) Impact of Attributable Impact of Attributable Charges/Other to Caleres, Charges/Other to Caleres, ($ thousands) Items Inc. Items Inc. GAAP earnings $ 83,259 $ 167,603 Charges/other items: Stuart Weitzman acquisition and integration costs 627 466 — — Exit of Naturalizer retail store operations 4,216 3,131 — — Pension settlement cost 2,716 2,017 — — Restructuring costs 2,951 2,192 — — Deferred tax valuation allowance adjustments — — — (26,654) Expense reduction initiatives — — 6,103 4,532 Total charges/other items $ 10,510 $ 7,806 $ 6,103 $ (22,122) Adjusted earnings $ 91,065 $ 145,481 Expand SCHEDULE 5 CALERES, INC. SUMMARY FINANCIAL RESULTS Expand (Unaudited) Thirteen Weeks Ended Famous Footwear Brand Portfolio Eliminations and Other Consolidated May 3, May 4, May 3, May 4, May 3, May 4, May 3, May 4, ($ thousands) 2025 2024 2025 2024 2025 2024 2025 2024 Net sales $ 327,676 $ 349,553 $ 295,395 $ 317,211 $ (8,850) $ (7,566) $ 614,221 $ 659,198 Gross profit 148,441 161,005 129,287 147,812 966 278 278,694 309,095 Gross margin 45.3 % 46.1 % 43.8 % 46.6 % (10.9) % (3.7) % 45.4 % 46.9 % Operating earnings (loss) 4,974 16,855 17,415 41,425 (10,805) (15,522) 11,584 42,758 Adjusted operating earnings (loss) 4,974 16,855 17,415 41,425 (10,178) (15,522) 12,211 42,758 Operating margin 1.5 % 4.8 % 5.9 % 13.1 % n/m % n/m % 1.9 % 6.5 % Adjusted operating earnings % 1.5 % 4.8 % 5.9 % 13.1 % n/m % n/m % 2.0 % 6.5 % Comparable sales % (on a 13-week basis) (4.6) % (2.3) % (1.2) % 0.1 % — % — % — % — % Company-operated stores, end of period 835 855 115 99 — — 950 954 n/m – Not meaningful Expand SCHEDULE 6 CALERES, INC. BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION Expand (Unaudited) Thirteen Weeks Ended May 3, 2025 May 4, 2024 ($ thousands, except per share data) Net earnings attributable to Caleres, Inc.: Net earnings $ 5,946 $ 30,798 Net loss attributable to noncontrolling interests 997 141 Net earnings attributable to Caleres, Inc. 6,943 30,939 Net earnings allocated to participating securities (241 ) (1,208 ) Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 6,702 $ 29,731 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 32,523 33,793 Dilutive effect of share-based awards 128 106 Diluted common shares attributable to Caleres, Inc. 32,651 33,899 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 0.21 $ 0.88 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 0.21 $ 0.88 Expand SCHEDULE 7 CALERES, INC. BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION Expand (Unaudited) Thirteen Weeks Ended May 3, 2025 May 4, 2024 ($ thousands, except per share data) Adjusted net earnings attributable to Caleres, Inc.: Adjusted net earnings $ 6,412 $ 30,798 Net loss attributable to noncontrolling interests 997 141 Adjusted net earnings attributable to Caleres, Inc. 7,409 30,939 Net earnings allocated to participating securities (241 ) (1,208 ) Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 7,168 $ 29,731 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 32,523 33,793 Dilutive effect of share-based awards 128 106 Diluted common shares attributable to Caleres, Inc. 32,651 33,899 Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.22 $ 0.88 Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.22 $ 0.88 Expand SCHEDULE 8 CALERES, INC. CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS) Expand (Unaudited) Thirteen Weeks Ended ($ thousands) May 3, 2025 May 4, 2024 EBITDA: Net earnings attributable to Caleres, Inc. $ 6,943 $ 30,939 Income tax provision 2,529 9,174 Interest expense, net 3,795 3,778 Depreciation and amortization (1) 14,784 13,490 EBITDA $ 28,051 $ 57,381 EBITDA margin 4.6 % 8.7 % Adjusted EBITDA: Adjusted net earnings attributable to Caleres, Inc. (2) $ 7,409 $ 30,939 Income tax provision (3) 2,690 9,174 Interest expense, net 3,795 3,778 Depreciation and amortization (1) 14,784 13,490 Adjusted EBITDA $ 28,678 $ 57,381 Adjusted EBITDA margin 4.7 % 8.7 % Expand (Unaudited) Trailing Twelve Months Ended ($ thousands) May 3, 2025 May 4, 2024 EBITDA: Net earnings attributable to Caleres, Inc. $ 83,259 $ 167,603 Income tax provision 22,416 8,000 Interest expense, net 13,974 17,498 Depreciation and amortization (1) 57,722 54,056 EBITDA $ 177,371 $ 247,157 EBITDA margin 6.6 % 8.8 % Adjusted EBITDA: Adjusted net earnings attributable to Caleres, Inc. (2) $ 91,065 $ 145,481 Income tax provision (3) 25,121 36,225 Interest expense, net 13,974 17,498 Depreciation and amortization (1) 57,722 54,056 Adjusted EBITDA $ 187,882 $ 253,260 Adjusted EBITDA margin 7.0 % 9.0 % (Unaudited) ($ thousands) May 3, 2025 May 4, 2024 Debt/EBITDA leverage ratio: Borrowings under revolving credit agreement (4) $ 258,500 $ 191,000 EBITDA (trailing twelve months) 177,371 247,157 Debt/EBITDA 1.5 0.8 Expand _________________________________ (1) Includes depreciation and amortization of capitalized software and intangible assets. (2) Refer to Schedule 4 for the consolidated reconciliation of net earnings attributable to Caleres, Inc. to adjusted net earnings attributable to Caleres, Inc. (3) Excludes the income tax impacts of the adjustments on Schedule 4. Expand
Yahoo
3 days ago
- Business
- Yahoo
FOOT LOCKER, INC. REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS
• Total Sales Down 4.6% Year-over-Year and Comparable Sales Down 2.6%• GAAP EPS Loss of $3.81 and Non-GAAP EPS Loss of $0.07• Continued Store Modernization Efforts with 69 Refreshes• Launched New Champs Sports and Kids Foot Locker Mobile Apps NEW YORK, May 29, 2025 /PRNewswire/ -- Foot Locker, Inc. (NYSE: FL) today reported financial results for its first quarter ended May 3, 2025. Mary Dillon, Chief Executive Officer said, "We are continuing to execute our Lace Up Plan strategies as we look forward to the successful completion of our transaction with DICK'S Sporting Goods. As we noted at the time we reported preliminary first quarter results, we experienced softer traffic trends globally that impacted our performance. During the quarter, we remained focused on the rollout of our Reimagined and Refresh programs to elevate our in-store experience, enhancing our digital offerings, deepening customer engagement through our FLX program and leveraging our strong brand partnerships to generate excitement for our customers. As we have executed these and other initiatives to further advance our strategy, our teams have also remained nimble to navigate the uncertain macroeconomic environment, including managing our promotional levels, inventories, and expenses and remaining disciplined with our cash flows." First Quarter Results Total sales were down 4.6%, to $1,788 million, as compared with sales of $1,874 million in the first quarter of 2024. Excluding the effect of foreign exchange rate fluctuations, total sales for the first quarter decreased by 4.5%. Comparable sales decreased by 2.6%, with comparable sales in the North American region decreasing by 0.5%. Comparable sales in the Company's international businesses decreased by 8.5%, led by softness in Foot Locker Europe. Please refer to the Sales by Banner table below for detailed sales performance by banner and region. Gross margin decreased by 40 basis points as compared with the prior-year period. Merchandise margins decreased by 10 basis points, while occupancy as a percentage of sales increased by 30 basis points as compared to the prior-year period. SG&A as a percentage of sales increased by 100 basis points as compared with the prior-year period, due to underlying deleverage on the sales decline and investments in technology which more than offset the cost optimization program and ongoing expense discipline. Compared to the prior year, SG&A dollars were down 0.7%. Net loss was $363 million, as compared with net income of $8 million in the prior-year period. On a non-GAAP basis, net loss was $6 million for the first quarter, as compared with net income of $21 million in the corresponding prior-year period. First quarter loss per share was $3.81, as compared with earnings per share of $0.09 in the first quarter of 2024. Non-GAAP loss was $0.07 per share in the first quarter, as compared with non-GAAP earnings per share of $0.22 in the corresponding prior-year period. Non-GAAP net loss and net loss per share exclude non-cash impairment charges totaling $276 million and primarily reflect a $140 million charge related to a tradename and a goodwill impairment charge of $110 million. Additionally, the Company recorded a full valuation allowance on its deferred tax assets and deferred tax costs related to certain of the Company's European business totaling $124 million, which is excluded from non-GAAP the tables below for the reconciliation of Non-GAAP measures. Balance Sheet At quarter-end, the Company had cash and cash equivalents of $343 million, and total debt was $445 million. As of May 3, 2025, the Company's merchandise inventories were $1,665 million, 0.4% higher than at the end of the first quarter last year. Excluding the effect of foreign currency fluctuations, merchandise inventories decreased by 0.7% as compared with the first quarter of last year. Store Base Update During the first quarter, the Company opened 9 new stores and closed 56 stores, including its stores that operated in South Korea, Denmark, Norway, Sweden, Greece, and Romania. Also during the quarter, the Company remodeled or relocated 11 stores and refreshed 69 stores to our updated design standards, which incorporate key elements of our current brand design specifications. As of May 3, 2025, the Company operated 2,363 stores in 20 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 236 licensed stores were operating in the Middle East, Europe, and Asia. Our licensed operations include the Greece and Romania business that was sold to our license partner in April 2025. Agreement to be Acquired by DICK'S As previously announced on May 15, 2025, Foot Locker and DICK'S Sporting Goods have entered into a definitive merger agreement under which DICK'S will acquire Foot Locker. In light of the pending transaction with DICK'S, Foot Locker will not be holding its previously scheduled conference call to discuss its first quarter 2025 results and will not be providing or updating previously issued financial guidance. Disclosure Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future, including, but not limited to, such things as future capital expenditures, expansion, strategic plans, financial objectives, dividend payments, stock repurchases, financial outlook, and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors, which are detailed in the Company's filings with the U.S. Securities and Exchange Commission. These forward-looking statements are based largely on our expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control. Factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements herein include, but are not limited to, the occurrence of any event, change or other circumstance that could give rise to the right of us or DICK'S Sporting Goods, Inc. ("DICK'S") to terminate the Agreement and Plan of Merger by and among us, DICK'S and a wholly owned subsidiary of DICK'S ("Merger Sub") pursuant to which, among other things, Merger Sub would be merged with and into us (the "Transaction"); the outcome of any legal proceedings that may be instituted against us, including with respect to the Transaction; the possibility that the Transaction does not close when expected or at all because required regulatory or shareholder approvals or other conditions to closing are not received or satisfied on a timely basis or at all; reputational risk and potential adverse reactions of our customers, employees or other business partners; the diversion of our management's attention and time from ongoing business operations and opportunities due to the Transaction; and any other factors set forth in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended February 1, 2025, filed on March 27, 2025. Any changes in such assumptions or factors could produce significantly different results. The Company undertakes no obligation to update the forward-looking statements, whether as a result of new information, future events, or otherwise. Foot Locker, Inc. Condensed Consolidated Statements of Operations (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions, except per share amounts)First Quarter2025 2024Sales$ 1,788 $ 1,874Other revenue 65Total revenue 1,7941,879 Cost of sales 1,2801,335Selling, general and administrative expenses 458461Depreciation and amortization 5151Impairment and other 27614(Loss) income from operations (271)18 Interest expense, net (2)(1)Other income (expense), net 3(4)(Loss) income before income taxes (270)13Income tax expense 935Net (loss) income$ (363) $ 8 Diluted (loss) earnings per share$ (3.81) $ 0.09Weighted-average diluted shares outstanding 95.395.3Non-GAAP Financial Measures In addition to reporting the Company's financial results reported in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP financial measures that will be presented will exclude (i) gains or losses related to our minority investments, (ii) impairments and other, and (iii) certain tax matters that we believe are nonrecurring or unusual in nature. Certain financial measures are identified as non-GAAP, such as sales changes excluding foreign currency fluctuations, adjusted income before income taxes, adjusted net income, and adjusted diluted earnings per share. We present certain amounts as excluding the effects of foreign currency fluctuations, which are also considered non-GAAP measures. Where amounts are expressed as excluding the effects of foreign currency fluctuations, such changes are determined by translating all amounts in both years using the prior-year average foreign exchange rates. Presenting amounts on a constant currency basis is useful to investors because it enables them to better understand the changes in our business that are not related to currency movements. These non-GAAP measures are presented because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core business or affect comparability. In addition, these non-GAAP measures are useful in assessing our progress in achieving our long-term financial objectives and are consistent with how executive compensation is determined. Foot Locker, Inc. Non-GAAP Reconciliation (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions, except per share amounts) We estimate the tax effect of all non-GAAP adjustments by applying a marginal tax rate to each item. The income tax items represent the discrete amount that affected the period. The non-GAAP financial information is provided in addition, and not as an alternative, to our reported results prepared in accordance with GAAP. The various non-GAAP adjustments are summarized in the tables below. Reconciliation of GAAP to non-GAAP results:First Quarter2025 2024Pre-tax (loss) income: (Loss) income before income taxes$ (270) $ 13Pre-tax adjustments excluded from GAAP:Impairment and other (1) 27614Other income / expense (2) (4)2Adjusted income before income taxes (non-GAAP)$ 2 $ 29 After-tax (loss) income: Net (loss) income$ (363) $ 8After-tax adjustments excluded from GAAP:Impairment and other, net of income tax benefit of $39 and $3 million, respectively (1) 23711Other income / expense, net of income tax expense of $- and $- million, respectively (2) (4)2Tax valuation allowance and deferred tax cost write off (3) 124—Adjusted net (loss) income (non-GAAP)$ (6) $ 21First Quarter2025 2024Earnings per share: Diluted (loss) earnings per share$ (3.81) $ 0.09Diluted per share amounts excluded from GAAP: Impairment and other (1) 2.480.11Other income / expense (2) (0.05)0.02Tax valuation allowance and deferred tax cost write off (3) 1.31—Adjusted diluted (loss) earnings per share (non-GAAP)$ (0.07) $ 0.22 Notes on Non-GAAP Adjustments:(1) Included in the first quarter of 2025 impairment and other caption were non-cash impairment charges of $140 million to write down the WSS tradename and $110 million of goodwill, as a result of a triggering event due to a reduction in the Company's stock price and resulting market capitalization, coupled with general macroeconomic factors. Additionally, the Company recorded $15 million in non-cash impairment charges of long-lived assets and right-of-use assets. In connection with the previously announced global headquarters relocation and the shutdown of the businesses in South Korea, Denmark, Norway, and Sweden, we recorded accelerated tenancy and lease termination charges of $8 million. The Company has closed all stores operating in those regions as it focuses on improving the overall results of its international operations. Finally, the Company recorded $3 million of reorganization costs primarily related to the announced closure and relocation of the Company's global headquarters and the shutdown the first quarter of 2024, impairment and other included a loss accrual for legal claims of $7 million and a $7 million impairment of long-lived assets and right-of-use assets related to the Company's decision to no longer operate, and to sublease, one of its larger underperforming stores in Europe. Foot Locker, Inc. Non-GAAP Reconciliation (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions, except per share amounts)Notes on Non-GAAP Adjustments (continued):(2) For the first quarter of 2025, other expense / income included a $5 million gain on the sale of the Greece and Romania businesses, partially offset by $1 million of our share of losses related to equity method the first quarter of 2024, other income / expense consisted of $2 million of our share of losses related to equity method investments. (3) In the first quarter of 2025, it was determined that due to recent weakness in market conditions, the ability to utilize the entirety of our European deferred tax asset was less likely than prior periods. Accordingly, the Company recorded a $117 million valuation allowance on all the deferred tax assets related to net operating loss carryforwards and deferred interest deductions related to certain of the Company's European business. The Company will continue to monitor the recoverability of deferred tax assets on a quarterly basis. Additionally, in connection with this assessment, the Company wrote off certain deferred tax costs of $7 million. Foot Locker, Inc. Sales by Banner (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions)First Quarter2025 2024 ConstantCurrencies Comparable SalesFoot Locker$ 735 $ 759(2.6) % (0.9) % Champs Sports 261267(2.2)0.5Kids Foot Locker 183183—3.4WSS 160160—(4.6)North America 1,3391,369(1.9)(0.5)EMEA 346394(13.2)(10.2)Foot Locker 6672(4.2)(0.8)atmos 3739(7.7)(6.4)Asia Pacific 103111(5.4)(2.8)Total$ 1,788 $ 1,874(4.5) % (2.6) % Foot Locker, Inc. Condensed Consolidated Balance Sheets (unaudited) (In millions)May 3, May 4,2025 2024ASSETSCurrent assets: Cash and cash equivalents$ 343 $ 282Merchandise inventories 1,6651,659Other current assets 359414 2,3672,355Property and equipment, net 908910Operating lease right-of-use assets 2,0992,175Deferred taxes 41114Goodwill 661760Other intangible assets, net 230392Minority investments 115150Other assets 13791$ 6,558 $ 6,947 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities: Accounts payable$ 504 $ 515Accrued and other liabilities 433389Current portion of long-term debt and obligations under finance leases 55Current portion of lease obligations 499496 1,4411,405Long-term debt and obligations under finance leases 440441Long-term lease obligations 1,8901,984Other liabilities 179231Total liabilities 3,9504,061Total shareholders' equity 2,6082,886$ 6,558 $ 6,947 Foot Locker, Inc. Condensed Consolidated Statement of Cash Flows (unaudited) (In millions)Thirteen weeks endedMay 3, May 4,($ in millions)2025 2024From operating activities: Net (loss) income$ (363) $ 8Adjustments to reconcile net (loss) income to net cash from operating activities: Tradename intangible asset impairment 140—Impairment of goodwill 110—Deferred income taxes 69(5)Depreciation and amortization 5151Impairment of long-lived assets and right-of-use assets 237Share-based compensation expense 66Gain on sales of businesses (5)—Change in assets and liabilities: Merchandise inventories (110)(158)Accounts payable 118151Accrued and other liabilities —(3)Pension contribution (20)—Other, net (22)1Net cash (used in) provided by operating activities (3)58From investing activities: Capital expenditures (58)(76)Proceeds from sales of businesses 6—Net cash used in investing activities (52)(76)From financing activities: Shares of common stock repurchased to satisfy tax withholding obligations (2)(4)Payment of obligations under finance leases (2)(2)Proceeds from exercise of stock options —5Net cash used in financing activities (4)(1)Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash 42Net change in cash, cash equivalents, and restricted cash (55)(17)Cash, cash equivalents, and restricted cash at beginning of year 430334Cash, cash equivalents, and restricted cash at end of period$ 375 $ 317 Foot Locker, Count and Square Footage (unaudited)Store activity is as follows:February 1, May 3, Relocations/2025 Opened Closed 2025 RemodelsFoot Locker U.S. 677—1266520Foot Locker Canada 84—3811Champs Sports 383163781Kids Foot Locker 369—53642WSS 15111151—Footaction 1——1—North America 1,6652271,64024EMEA (1) 60871859739Foot Locker Pacific 96——9616Foot Locker Asia 11—11——atmos 30——301Asia Pacific 137—1112617Total 2,4109562,36380 Selling and gross square footage are as follows:May 4, 2024 May 3, 2025(in thousands)Selling Gross Selling GrossFoot Locker U.S. 2,3864,0492,3053,902Foot Locker Canada 257423254416Champs Sports 1,5082,3731,4432,274Kids Foot Locker 7761,2957451,258WSS 1,4581,7571,5781,900Footaction 3636North America 6,3889,9036,3289,756EMEA (1) 1,2102,4591,1592,378Foot Locker Pacific 246371254381Foot Locker Asia 5298--atmos 28482847Asia Pacific 326517282428Total 7,92412,8797,76912,562(1) Includes 7 Kids Foot Locker stores, and the related square footage, operating in Europe for both February 1, 2025 and May 3, 2025. Contacts: Kate Fitzsimons Investor Relations ir@ Parrish Joele Frank, Wilkinson Brimmer Katcher lparrish@ mediarelations@ View original content to download multimedia: SOURCE Foot Locker IR
Business Wire
4 days ago
- Business
- Business Wire
e.l.f. Beauty Announces Fourth Quarter and Full Fiscal 2025 Results
OAKLAND, Calif.--(BUSINESS WIRE)--e.l.f. Beauty (NYSE: ELF) today announced results for the three and twelve months ended March 31, 2025. 'In this dynamic environment, we continue to deliver industry-leading results. In Fiscal 2025, we grew net sales 28%, gained 190 basis points of market share in the U.S. and continued our international expansion strategy,' said Tarang Amin, e.l.f. Beauty's Chairman and Chief Executive Officer. 'We believe we have the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands.' Fourth Quarter Fiscal 2025 Review For the three months ended March 31, 2025, compared to the three months ended March 31, 2024: Net sales increased 4% to $332.6 million, primarily driven by strength across our retailer and e-commerce channels, as well as geographically across our U.S. and international markets. Gross margin increased approximately 50 basis points to 71%, primarily driven by favorable foreign exchange impacts on goods purchased from China and lower transportation costs. Selling, general and administrative ('SG&A') expenses decreased $17.4 million to $192.7 million, or 58% of net sales. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) was $173.3 million, or 52% of net sales. The decrease in SG&A dollars was primarily due to a decrease in marketing and digital spend. Net income was $28.3 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $45.2 million. Diluted earnings per share were $0.49 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 $0.78. Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $81.4 million, or 24% of net sales, up 99% year over year. Full Year Fiscal 2025 Review For the twelve months ended March 31, 2025, compared to the twelve months ended March 31, 2024: Net sales increased 28% to $1,313.5 million, primarily driven by strength across our retailer and e-commerce channels, as well as geographically across our U.S. and international markets. Gross margin increased approximately 50 basis points to 71%, primarily driven by favorable foreign exchange impacts on goods purchased from China and cost savings, partially offset by mix. SG&A increased $203.2 million to $777.7 million, or 59% of net sales. Adjusted SG&A was $690.9 million, or 53% of net sales. The increase in SG&A dollars was primarily due to an increase in marketing and digital spend, compensation and benefits, operations costs, retail fixturing and visual merchandising costs, professional fees and depreciation and amortization. Net income was $112.1 million on a GAAP basis. Adjusted net income was $197.6 million. Diluted earnings per share were $1.92 on a GAAP basis. Adjusted diluted earnings per share were $3.39. Adjusted EBITDA was $296.8 million, or 23% of net sales, up 26% year over year. Liquidity The Company ended fiscal 2025 with $148.7 million in cash and cash equivalents and $256.7 million of total debt outstanding, as compared to $108.2 million in cash and cash equivalents and $262.1 million of total debt outstanding at the end of fiscal 2024. Fiscal 2026 Outlook Due to the wide range of potential outcomes related to tariffs, the Company is not providing a Fiscal 2026 financial outlook at this time. Entered Definitive Agreement to Acquire rhode On May 28, 2025, the Company entered into a definitive agreement to acquire rhode, a fast-growing, multi-category lifestyle beauty brand founded by Hailey Bieber and known for its collection of high-performance, skin-focused products. The deal is comprised of $800.0 million at closing, subject to customary adjustments, in a combination of $600.0 million of cash and $200.0 million of stock, and potential earnout consideration of up to $200.0 million based on the future growth of the brand over a three-year timeframe. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of Fiscal 2026. The company has provided additional details regarding this transaction in a separate press release, and management will discuss the transaction on today's webcast. Webcast Details The Company will hold a webcast to discuss its fourth quarter and Fiscal 2025 results and acquisition announcement today, May 28, 2025, at 4:30 p.m. Eastern Time. The webcast will be broadcast live at For those unable to listen to the live broadcast, an archived version will be available at the same location. About e.l.f. Beauty e.l.f. Beauty (NYSE: ELF) is fueled by a belief that anything is possible. e.l.f. is a different kind of company that disrupts norms, shapes culture and connects communities, through positivity, inclusivity and accessibility. The mission is clear: to make the best of beauty accessible to every eye, lip and face. e.l.f. Beauty and its brands, e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Well People and Naturium, are led by purpose, driven by results and elevated by superpowers. e.l.f. Beauty offers e.l.f. clean and vegan products, all double-certified by PETA and Leaping Bunny as cruelty free, and proudly stands as the first beauty company with Fair Trade Certified™ facilities. With a kind heart at the center of e.l.f.'s ethos, the company donates 2% of net profits to organizations that make positive impacts. Learn more at Note Regarding non-GAAP Financial Measures This press release includes references to non-GAAP measures, including adjusted EBITDA, adjusted SG&A, adjusted net income and adjusted diluted earnings per share. The Company presents these non-GAAP measures because its management uses them as supplemental measures in assessing its operating performance, and believes they are helpful to investors, securities analysts and other interested parties in evaluating the Company's performance. The non-GAAP measures included in this press release are not measurements of financial performance under GAAP and they should not be considered as alternatives to or substitutes for measures of performance derived in accordance with GAAP. In addition, these non-GAAP measures should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. These non-GAAP measures have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Company's results as reported under GAAP. The Company's definitions and calculations of these non-GAAP measures are not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation. Adjusted EBITDA excludes expense or income related to stock-based compensation, impairment of equity investment, and other non-cash and non-recurring items. Such other non-cash or non-recurring items include amortization of internal-use software costs related to cloud applications, acquisition related costs, and cloud computing ERP implementation costs. Adjusted SG&A excludes expense related to stock-based compensation and other non-recurring items. Such other non-recurring items include other non-recurring cloud computing ERP implementation costs and acquisition related costs. Adjusted effective tax rate is the tax rate when excluding the pre-tax impact of expense or income related to stock-based compensation, other non-cash and non-recurring items, impairment of equity investment, amortization of acquired intangible assets, as well as the related tax impact for these items, calculated utilizing the statutory rate for where the impact was incurred. Adjusted net income excludes expense related to stock-based compensation, other non-recurring items, impairment of equity investment, amortization of acquired intangible assets and the tax impact of the foregoing adjustments. Such other non-recurring items include other non-recurring cloud computing ERP implementation costs and acquisition related costs. Forward-looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, including those statements that we believe we have the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, actual results and the timing of selected events may differ materially from those expectations. Factors that could cause actual results to differ materially from those in the forward looking statements include, among other things, the risks and uncertainties that are described in the Company's most recent Annual Report on Form 10-K, as updated from time to time in the Company's SEC filings, as well as the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement to acquire rhode; the possibility that various closing conditions for the acquisition may not be satisfied or waived; the possibility of a failure to obtain, delays in obtaining or adverse conditions contained in regulatory or other required approvals; the failure of the acquisition to close for any other reason; the amount of fees and expenses related to the acquisition; the ability to achieve projected financial results; the Company's ability to effectively compete with other beauty companies; the Company's ability to successfully introduce new products; the Company's ability to attract new retail customers and/or expand business with its existing retail customers; the Company's ability to optimize shelf space at its key retail customers; the loss of any of the Company's key retail customers or if the general business performance of its key retail customers declines; and the Company's ability to effectively manage its SG&A and other expenses. Potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated balance sheets (unaudited) (in thousands, except share and per share data) March 31, 2025 Assets Current assets: Cash and cash equivalents $ 148,692 $ 108,183 Accounts receivable, net 126,010 123,797 Inventory, net 187,170 191,489 Prepaid expenses and other current assets 78,688 53,608 Total current assets 540,560 477,077 Property and equipment, net 28,787 13,974 Intangible assets, net 207,698 225,094 Goodwill 340,582 340,600 Other assets 130,548 72,502 Total assets $ 1,248,175 $ 1,129,247 Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $ — $ 100,307 Accounts payable 72,180 81,075 Accrued expenses and other current liabilities 104,876 117,733 Total current liabilities 177,056 299,115 Long-term debt 256,676 161,819 Deferred tax liabilities 3,812 3,666 Long-term operating lease obligations 48,721 21,459 Other long-term liabilities 1,055 616 Total liabilities 487,320 486,675 Stockholders' equity: Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of March 31, 2025 and March 31, 2024; 55,730,037 and 55,583,660 shares issued and outstanding as of March 31, 2025 and March 31, 2024, respectively 556 555 Additional paid-in capital 942,025 936,403 Accumulated other comprehensive income (loss) 521 (50 ) Accumulated deficit (182,247 ) (294,336 ) Total stockholders' equity 760,855 642,572 Total liabilities and stockholders' equity $ 1,248,175 $ 1,129,247 Expand e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated statements of cash flows (unaudited) (in thousands) Twelve months ended March 31, 2025 2024 Cash flows from operating activities: Net income $ 112,089 $ 127,663 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 44,115 30,167 Non-cash lease expense 9,740 5,746 Stock-based compensation expense 71,786 40,625 Amortization of debt issuance costs and discount on debt 545 430 Deferred income taxes 446 (3,276 ) Impairment of equity investment — 2,875 Acquisition-related seller expenses — (10,549 ) Loss on extinguishment of debt 13 — Other, net 136 1,227 Changes in operating assets and liabilities: Accounts receivable (2,742 ) (49,598 ) Inventory 4,874 (93,930 ) Prepaid expenses and other assets (75,854 ) (55,182 ) Accounts payable and accrued expenses (23,397 ) 81,215 Other liabilities (7,911 ) (6,259 ) Net cash provided by operating activities 133,840 71,154 Cash flows from investing activities: Acquisition, net of cash acquired — (274,973 ) Purchase of property and equipment (18,520 ) (8,659 ) Investment contributions (577 ) (1,028 ) Net cash used in investing activities (19,097 ) (284,660 ) Cash flows from financing activities: Proceeds from revolving line of credit — 89,500 Repayment of revolving line of credit (89,500 ) — Proceeds from long-term debt 256,676 115,000 Repayment of long-term debt (173,376 ) (7,875 ) Debt issuance costs paid (2,083 ) (665 ) Repurchase of common stock (67,062 ) — Cash received from issuance of stock options 953 5,561 Other, net (57 ) (576 ) Net cash (used in) provided by financing activities (74,449 ) 200,945 Effect of exchange rate changes on cash and cash equivalents 215 (34 ) Net increase (decrease) in cash and cash equivalents 40,509 (12,595 ) Cash and cash equivalents - beginning of period 108,183 120,778 Cash and cash equivalents - end of period $ 148,692 $ 108,183 Expand e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP net income to non-GAAP adjusted EBITDA (unaudited) (in thousands) Three months ended March 31, Twelve months ended March 31, 2025 2024 2025 2024 Net income $ 28,253 $ 14,527 $ 112,089 $ 127,663 Interest expense, net 2,860 4,002 13,813 7,023 Income tax (benefit) provision 15,784 (3,346 ) 33,406 13,327 Depreciation and amortization 13,216 9,722 44,115 30,167 EBITDA $ 60,113 $ 24,905 $ 203,423 $ 178,180 Stock-based compensation 14,835 11,166 71,786 40,625 Impairment of equity investment (a) — 1,155 — 2,875 Other non-cash and non-recurring items (b) 6,404 3,704 21,617 13,061 Loss on extinguishment of debt (c) 13 — 13 — Adjusted EBITDA $ 81,365 $ 40,930 $ 296,839 $ 234,741 Expand (a) Represents an impairment of equity investment recorded during the three and twelve months ended March 31, 2024. (b) Represents other non-cash or non-recurring items, which include amortization of internal-use software costs related to cloud applications, acquisition related costs, and cloud computing ERP implementation costs. (c) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement. Expand (a) Represents other non-recurring cloud computing ERP implementation costs and acquisition related costs. Expand e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP net income to non-GAAP adjusted net income (unaudited) (in thousands, except share and per share data) Three months ended March 31, Twelve months ended March 31, 2025 2024 2025 2024 Net income $ 28,253 $ 14,527 $ 112,089 $ 127,663 Stock-based compensation 14,835 11,166 71,786 40,625 Other non-recurring items (a) 4,563 2,444 15,029 8,041 Impairment of equity investment (b) — 1,155 — 2,875 Loss on extinguishment of debt (c) 13 — 13 — Amortization of acquired intangible assets (d) 4,350 4,864 17,397 15,047 Tax Impact (e) (6,779 ) (3,311 ) (18,733 ) (10,485 ) Adjusted net income $ 45,235 $ 30,845 $ 197,581 $ 183,766 Weighted average number of shares outstanding - diluted 57,980,746 58,487,557 58,345,174 57,788,454 Expand (a) Represents other non-recurring cloud computing ERP implementation costs and acquisition related costs. (b) Represents an impairment of equity investment recorded during the three and twelve months ended March 31, 2024. (c) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement. (d) Represents amortization expense of acquired intangible assets consisting of customer relationships and trademarks. (e) Represents the tax impact of the above adjustments. Expand
Yahoo
4 days ago
- Business
- Yahoo
e.l.f. Beauty Announces Fourth Quarter and Full Fiscal 2025 Results
Full year Fiscal 2025 net sales grew 28%, reflecting another year of industry-leading growth Q4 marked 25th consecutive quarter of net sales growth and market share gains Announced agreement to acquire rhode, a fast-growing beauty brand founded by Hailey Bieber OAKLAND, Calif., May 28, 2025--(BUSINESS WIRE)--e.l.f. Beauty (NYSE: ELF) today announced results for the three and twelve months ended March 31, 2025. "In this dynamic environment, we continue to deliver industry-leading results. In Fiscal 2025, we grew net sales 28%, gained 190 basis points of market share in the U.S. and continued our international expansion strategy," said Tarang Amin, e.l.f. Beauty's Chairman and Chief Executive Officer. "We believe we have the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands." Fourth Quarter Fiscal 2025 Review For the three months ended March 31, 2025, compared to the three months ended March 31, 2024: Net sales increased 4% to $332.6 million, primarily driven by strength across our retailer and e-commerce channels, as well as geographically across our U.S. and international markets. Gross margin increased approximately 50 basis points to 71%, primarily driven by favorable foreign exchange impacts on goods purchased from China and lower transportation costs. Selling, general and administrative ("SG&A") expenses decreased $17.4 million to $192.7 million, or 58% of net sales. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) was $173.3 million, or 52% of net sales. The decrease in SG&A dollars was primarily due to a decrease in marketing and digital spend. Net income was $28.3 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $45.2 million. Diluted earnings per share were $0.49 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 $0.78. Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $81.4 million, or 24% of net sales, up 99% year over year. Full Year Fiscal 2025 Review For the twelve months ended March 31, 2025, compared to the twelve months ended March 31, 2024: Net sales increased 28% to $1,313.5 million, primarily driven by strength across our retailer and e-commerce channels, as well as geographically across our U.S. and international markets. Gross margin increased approximately 50 basis points to 71%, primarily driven by favorable foreign exchange impacts on goods purchased from China and cost savings, partially offset by mix. SG&A increased $203.2 million to $777.7 million, or 59% of net sales. Adjusted SG&A was $690.9 million, or 53% of net sales. The increase in SG&A dollars was primarily due to an increase in marketing and digital spend, compensation and benefits, operations costs, retail fixturing and visual merchandising costs, professional fees and depreciation and amortization. Net income was $112.1 million on a GAAP basis. Adjusted net income was $197.6 million. Diluted earnings per share were $1.92 on a GAAP basis. Adjusted diluted earnings per share were $3.39. Adjusted EBITDA was $296.8 million, or 23% of net sales, up 26% year over year. Liquidity The Company ended fiscal 2025 with $148.7 million in cash and cash equivalents and $256.7 million of total debt outstanding, as compared to $108.2 million in cash and cash equivalents and $262.1 million of total debt outstanding at the end of fiscal 2024. Fiscal 2026 Outlook Due to the wide range of potential outcomes related to tariffs, the Company is not providing a Fiscal 2026 financial outlook at this time. Entered Definitive Agreement to Acquire rhode On May 28, 2025, the Company entered into a definitive agreement to acquire rhode, a fast-growing, multi-category lifestyle beauty brand founded by Hailey Bieber and known for its collection of high-performance, skin-focused products. The deal is comprised of $800.0 million at closing, subject to customary adjustments, in a combination of $600.0 million of cash and $200.0 million of stock, and potential earnout consideration of up to $200.0 million based on the future growth of the brand over a three-year timeframe. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of Fiscal 2026. The company has provided additional details regarding this transaction in a separate press release, and management will discuss the transaction on today's webcast. Webcast Details The Company will hold a webcast to discuss its fourth quarter and Fiscal 2025 results and acquisition announcement today, May 28, 2025, at 4:30 p.m. Eastern Time. The webcast will be broadcast live at For those unable to listen to the live broadcast, an archived version will be available at the same location. About e.l.f. Beauty e.l.f. Beauty (NYSE: ELF) is fueled by a belief that anything is possible. e.l.f. is a different kind of company that disrupts norms, shapes culture and connects communities, through positivity, inclusivity and accessibility. The mission is clear: to make the best of beauty accessible to every eye, lip and face. e.l.f. Beauty and its brands, e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Well People and Naturium, are led by purpose, driven by results and elevated by superpowers. e.l.f. Beauty offers e.l.f. clean and vegan products, all double-certified by PETA and Leaping Bunny as cruelty free, and proudly stands as the first beauty company with Fair Trade Certified™ facilities. With a kind heart at the center of e.l.f.'s ethos, the company donates 2% of net profits to organizations that make positive impacts. Learn more at Note Regarding non-GAAP Financial Measures This press release includes references to non-GAAP measures, including adjusted EBITDA, adjusted SG&A, adjusted net income and adjusted diluted earnings per share. The Company presents these non-GAAP measures because its management uses them as supplemental measures in assessing its operating performance, and believes they are helpful to investors, securities analysts and other interested parties in evaluating the Company's performance. The non-GAAP measures included in this press release are not measurements of financial performance under GAAP and they should not be considered as alternatives to or substitutes for measures of performance derived in accordance with GAAP. In addition, these non-GAAP measures should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. These non-GAAP measures have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Company's results as reported under GAAP. The Company's definitions and calculations of these non-GAAP measures are not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation. Adjusted EBITDA excludes expense or income related to stock-based compensation, impairment of equity investment, and other non-cash and non-recurring items. Such other non-cash or non-recurring items include amortization of internal-use software costs related to cloud applications, acquisition related costs, and cloud computing ERP implementation costs. Adjusted SG&A excludes expense related to stock-based compensation and other non-recurring items. Such other non-recurring items include other non-recurring cloud computing ERP implementation costs and acquisition related costs. Adjusted effective tax rate is the tax rate when excluding the pre-tax impact of expense or income related to stock-based compensation, other non-cash and non-recurring items, impairment of equity investment, amortization of acquired intangible assets, as well as the related tax impact for these items, calculated utilizing the statutory rate for where the impact was incurred. Adjusted net income excludes expense related to stock-based compensation, other non-recurring items, impairment of equity investment, amortization of acquired intangible assets and the tax impact of the foregoing adjustments. Such other non-recurring items include other non-recurring cloud computing ERP implementation costs and acquisition related costs. Forward-looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, including those statements that we believe we have the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, actual results and the timing of selected events may differ materially from those expectations. Factors that could cause actual results to differ materially from those in the forward looking statements include, among other things, the risks and uncertainties that are described in the Company's most recent Annual Report on Form 10-K, as updated from time to time in the Company's SEC filings, as well as the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement to acquire rhode; the possibility that various closing conditions for the acquisition may not be satisfied or waived; the possibility of a failure to obtain, delays in obtaining or adverse conditions contained in regulatory or other required approvals; the failure of the acquisition to close for any other reason; the amount of fees and expenses related to the acquisition; the ability to achieve projected financial results; the Company's ability to effectively compete with other beauty companies; the Company's ability to successfully introduce new products; the Company's ability to attract new retail customers and/or expand business with its existing retail customers; the Company's ability to optimize shelf space at its key retail customers; the loss of any of the Company's key retail customers or if the general business performance of its key retail customers declines; and the Company's ability to effectively manage its SG&A and other expenses. Potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated statements of operations (unaudited) (in thousands, except share and per share data) Three months ended March 31, Twelve months ended March 31, 2025 2024 2025 2024 Net sales $ 332,645 $ 321,143 $ 1,313,517 $ 1,023,932 Cost of sales 95,606 93,941 377,831 299,836 Gross profit 237,039 227,202 935,686 724,096 Selling, general and administrative expenses 192,723 210,172 777,659 574,418 Operating income 44,316 17,030 158,027 149,678 Other income (expense), net 2,594 (692 ) 1,294 1,210 Impairment of equity investment — (1,155 ) — (2,875 ) Interest expense, net (2,860 ) (4,002 ) (13,813 ) (7,023 ) Loss on extinguishment of debt (13 ) — (13 ) — Income before income taxes 44,037 11,181 145,495 140,990 Income tax (provision) benefit (15,784 ) 3,346 (33,406 ) (13,327 ) Net income $ 28,253 $ 14,527 $ 112,089 $ 127,663 Net income per share: Basic $ 0.50 $ 0.26 $ 1.99 $ 2.33 Diluted $ 0.49 $ 0.25 $ 1.92 $ 2.21 Weighted average shares outstanding: Basic 56,159,804 55,465,190 56,210,459 54,747,930 Diluted 57,980,746 58,487,557 58,345,174 57,788,454 e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated balance sheets (unaudited) (in thousands, except share and per share data) March 31, 2025 March 31, 2024 Assets Current assets: Cash and cash equivalents $ 148,692 $ 108,183 Accounts receivable, net 126,010 123,797 Inventory, net 187,170 191,489 Prepaid expenses and other current assets 78,688 53,608 Total current assets 540,560 477,077 Property and equipment, net 28,787 13,974 Intangible assets, net 207,698 225,094 Goodwill 340,582 340,600 Other assets 130,548 72,502 Total assets $ 1,248,175 $ 1,129,247 Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $ — $ 100,307 Accounts payable 72,180 81,075 Accrued expenses and other current liabilities 104,876 117,733 Total current liabilities 177,056 299,115 Long-term debt 256,676 161,819 Deferred tax liabilities 3,812 3,666 Long-term operating lease obligations 48,721 21,459 Other long-term liabilities 1,055 616 Total liabilities 487,320 486,675 Stockholders' equity: Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of March 31, 2025 and March 31, 2024; 55,730,037 and 55,583,660 shares issued and outstanding as of March 31, 2025 and March 31, 2024, respectively 556 555 Additional paid-in capital 942,025 936,403 Accumulated other comprehensive income (loss) 521 (50 ) Accumulated deficit (182,247 ) (294,336 ) Total stockholders' equity 760,855 642,572 Total liabilities and stockholders' equity $ 1,248,175 $ 1,129,247 e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated statements of cash flows (unaudited) (in thousands) Twelve months ended March 31, 2025 2024 Cash flows from operating activities: Net income $ 112,089 $ 127,663 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 44,115 30,167 Non-cash lease expense 9,740 5,746 Stock-based compensation expense 71,786 40,625 Amortization of debt issuance costs and discount on debt 545 430 Deferred income taxes 446 (3,276 ) Impairment of equity investment — 2,875 Acquisition-related seller expenses — (10,549 ) Loss on extinguishment of debt 13 — Other, net 136 1,227 Changes in operating assets and liabilities: Accounts receivable (2,742 ) (49,598 ) Inventory 4,874 (93,930 ) Prepaid expenses and other assets (75,854 ) (55,182 ) Accounts payable and accrued expenses (23,397 ) 81,215 Other liabilities (7,911 ) (6,259 ) Net cash provided by operating activities 133,840 71,154 Cash flows from investing activities: Acquisition, net of cash acquired — (274,973 ) Purchase of property and equipment (18,520 ) (8,659 ) Investment contributions (577 ) (1,028 ) Net cash used in investing activities (19,097 ) (284,660 ) Cash flows from financing activities: Proceeds from revolving line of credit — 89,500 Repayment of revolving line of credit (89,500 ) — Proceeds from long-term debt 256,676 115,000 Repayment of long-term debt (173,376 ) (7,875 ) Debt issuance costs paid (2,083 ) (665 ) Repurchase of common stock (67,062 ) — Cash received from issuance of stock options 953 5,561 Other, net (57 ) (576 ) Net cash (used in) provided by financing activities (74,449 ) 200,945 Effect of exchange rate changes on cash and cash equivalents 215 (34 ) Net increase (decrease) in cash and cash equivalents 40,509 (12,595 ) Cash and cash equivalents - beginning of period 108,183 120,778 Cash and cash equivalents - end of period $ 148,692 $ 108,183 e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP net income to non-GAAP adjusted EBITDA (unaudited) (in thousands) Three months ended March 31, Twelve months ended March 31, 2025 2024 2025 2024 Net income $ 28,253 $ 14,527 $ 112,089 $ 127,663 Interest expense, net 2,860 4,002 13,813 7,023 Income tax (benefit) provision 15,784 (3,346 ) 33,406 13,327 Depreciation and amortization 13,216 9,722 44,115 30,167 EBITDA $ 60,113 $ 24,905 $ 203,423 $ 178,180 Stock-based compensation 14,835 11,166 71,786 40,625 Impairment of equity investment (a) — 1,155 — 2,875 Other non-cash and non-recurring items (b) 6,404 3,704 21,617 13,061 Loss on extinguishment of debt (c) 13 — 13 — Adjusted EBITDA $ 81,365 $ 40,930 $ 296,839 $ 234,741 (a) Represents an impairment of equity investment recorded during the three and twelve months ended March 31, 2024. (b) Represents other non-cash or non-recurring items, which include amortization of internal-use software costs related to cloud applications, acquisition related costs, and cloud computing ERP implementation costs. (c) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement. e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP SG&A to non-GAAP adjusted SG&A (unaudited) (in thousands) Three months ended March 31, Twelve months ended March 31, 2025 2024 2025 2024 Selling, general, and administrative expenses $ 192,723 $ 210,172 $ 777,659 $ 574,418 Stock-based compensation (14,827 ) (11,145 ) (71,732 ) (40,609 ) Other non-recurring items (a) (4,563 ) (2,134 ) (15,029 ) (7,401 ) Adjusted selling, general, and administrative expenses $ 173,333 $ 196,893 $ 690,898 $ 526,408 (a) Represents other non-recurring cloud computing ERP implementation costs and acquisition related costs. e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP net income to non-GAAP adjusted net income (unaudited) (in thousands, except share and per share data) Three months ended March 31, Twelve months ended March 31, 2025 2024 2025 2024 Net income $ 28,253 $ 14,527 $ 112,089 $ 127,663 Stock-based compensation 14,835 11,166 71,786 40,625 Other non-recurring items (a) 4,563 2,444 15,029 8,041 Impairment of equity investment (b) — 1,155 — 2,875 Loss on extinguishment of debt (c) 13 — 13 — Amortization of acquired intangible assets (d) 4,350 4,864 17,397 15,047 Tax Impact (e) (6,779 ) (3,311 ) (18,733 ) (10,485 ) Adjusted net income $ 45,235 $ 30,845 $ 197,581 $ 183,766 Weighted average number of shares outstanding - diluted 57,980,746 58,487,557 58,345,174 57,788,454 Adjusted diluted earnings per share $ 0.78 $ 0.53 $ 3.39 $ 3.18 (a) Represents other non-recurring cloud computing ERP implementation costs and acquisition related costs. (b) Represents an impairment of equity investment recorded during the three and twelve months ended March 31, 2024. (c) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement. (d) Represents amortization expense of acquired intangible assets consisting of customer relationships and trademarks. (e) Represents the tax impact of the above adjustments. View source version on Contacts Investors:KC KattenVP, Corporate Development & Investor Relationskkatten@ Media:Sam CritchellVP, Corporate Communicationsscritchell@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
