e.l.f. Beauty, Inc. (NYSE:ELF) Q1 2019 Earnings Conference Call Transcript
May 08, 2019 • 04:30 pm ET
Greetings, and welcome to the e.l.f. Beauty Transition Period Ended March 31, 2019, Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Willa McManmon, Investor Relations. Thank you. You may begin.
Thank you, operator, and good afternoon, everyone. Thank you for joining us today to discuss e.l.f. Beauty's transition period 2019 earnings results. A copy of today's press release is available in the Investor Relations section of elfcosmetics.com. A recording of the call will also be available for 90 days on elfcosmetics.com.
As a reminder, this call contains forward-looking statements that are based on management's beliefs and assumptions, expectations, estimates and projections. These statements, including those relating to the company's fiscal 2020 outlook, are subject to known and unknown risks and uncertainties, and therefore, actual results may differ materially. Important factors that may cause actual results to differ from those expressed or implied by such forward-looking statements are detailed in today's press release and the company's SEC filings.
In addition, the company's presentation today includes information presented on a non-GAAP basis. We refer you to today's press release for a reconciliation of the differences between the non-GAAP presentation and the most directly comparable GAAP measures.
With me from management today are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer.
With that, I'll turn the call over to Tarang.
Tarang P. Amin
Thanks, Willa, and good afternoon, everyone. Our transition period results exceeded our expectations with net sales of $66 million and adjusted EBITDA of $12 million. Excluding the impact of e.l.f. stores, net sales were up 3% versus a year ago. These results reflect the benefit of Project Unicorn and increased marketing activations behind our new first-to-mass products.
We are making progress in our strategic repositioning and have defined five key initiatives that together form an integrated strategy designed to reinvigorate the e.l.f. brand and raise consumer awareness. We are seeing initial progress as we begin to execute against these initiatives. We believe the investments we are making in the brand will take time to fully realize, which is reflected in our fiscal 2020 guidance. Let me provide greater context on each of these initiatives.
Two of our key initiatives go hand in hand, driving demand in the brand and a major step-up in digital. As you know, in February, our Chief Marketing Officer, Kory Marchisotto, joined us from Shiseido. Kory has hit the ground running in redefining our marketing strategy and bringing more consumers into the brand. e.l.f.'s core value proposition, making the best of beauty accessible to every eye, lip and face still resonates with consumers.
What's changing is the way we are telling our story. Kory and the team are crystallizing a campaign to reinvigorate what we've coined e.l.f.'s superpowers. These are unique brand tenets that e.l.f. users love. Our premium quality,