Shrugging off the worst effects of the coronavirus pandemic, e.l.f. Beauty (NYSE:ELF) said today it's standing by its fiscal 2020 guidance, issued on Feb. 5. The cosmetics, beauty, and personal care company stands in stark contrast to numerous other consumer goods enterprises, which have withdrawn their guidance in the face of coronavirus-related economic disruption and either scheduled new guidance for a later date or postponed the information indefinitely.
e.l.f. Beauty said earlier this year its highly developed online retail and social media presence, combined with the location of its facilities well away from major outbreak areas in China and a six-month inventory moat, would help it avoid the pandemic's worst effects. These claims appear to be borne out by its current market strength.
e.l.f. says it has successfully carried out its five strategic imperatives and it expects 7% to 8% year over year net sales growth. This is in spite of the fact the company also notes a "significant decline" in retail sales since mid-March because of coronavirus' effects on consumer shopping.
In the news release, e.l.f. indicates its entire supply chain is currently in good condition. It states its manufacturing facilities in China have returned to "normal run rates" as COVID-19 subsides in that country. It says it has fully operational distribution centers and sufficient inventory to meet all e-commerce orders in the USA, in addition to keeping its retailer partners such as Target and Walmart stocked with product.