E.l.f. Cosmetics is working to regain its footing.
Once the darling of the masstige market, E.l.f. was known for selling high-quality cosmetics for $1, $3 and $5. When the company went public in 2017, shares priced at $17, and later that year, surged to almost $31. In 2017, chief executive officer Tarang Amin voiced the company’s $1 billion aspirations.
But last month, E.l.f. posted its worst numbers yet. Fourth-quarter 2018 net sales were down 4 percent year-over-year, to $78.6 million, and net sales dipped 1 percent to $267 million for the year — still far from the $1 billion mark.
These days, E.l.f. is working to course correct in a market that’s becoming increasingly competitive. There’s Project Unicorn, a shelf space and packaging redesign, which Amin contends will “drive greater productivity on shelf” at big national retail accounts, and there’s the closing of all E.l.f. stores, which brought in 5 percent of sales in 2018 but were not profitable. Coupled with a slight increase in marketing spend — from 4 percent in 2018 to mid-to-high single digits in 2019 — E.l.f. is hoping these actions will help it to return to growth.
E.l.f. 16-Hour Camo Concealer
Analysts and industry observers are skeptical,