Shares of Elf Beauty Inc. ELF, +1.06% tanked in the extended session Wednesday after the cosmetics company reported a surprise loss in the January-to-March period and adjusted earnings came below Wall Street expectations. Elf said it lost $17.9 million, or 37 cents a share, in the period, versus earnings of one penny a share in the year-ago period. The loss included $22.2 million in restructuring expenses related to the closing of all 22 Elf retail stores in February, the company said. Adjusted for one-time items, the company earned $3.2 million, or 6 cents a share, compared with $5.5 million, or 11 cents a share, a year ago. Sales fell to $66.1 million from $65.9 million a year ago. Analysts polled by FactSet had expected GAAP earnings of 2 cents a share and adjusted earnings of 7 cents a share on sales of $54.5 million for the period. Elf guided for net sales between $235 million and $245 million for fiscal 2020, and adjusted EPS between 35 cents and 39 cents for the year. As previously disclosed, Elf was announcing results for a transition period because it changed its fiscal year "to better align with its key customers’ annual shelf resets," from the twelve months beginning Jan. 1 to twelve months beginning April 1.
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