Summary of e.l.f. Beauty Conference Call Company Overview - **Company**: e.l.f. Beauty (NYSE: ELF) - **Date**: December 03, 2025 - **Speakers**: Tarang Amin (Chairman and CEO), Mandy Fields (Senior VP and CFO) Key Points Industry and Market Outlook - **Growth Expectations**: e.l.f. anticipates organic growth of 2%-5% in the second half of the fiscal year, with a strong consumption rate of 12% in the U.S. [5][6][15] - **Market Share**: The company gained 90 basis points of market share in October, continuing a trend of gaining share for 27 consecutive quarters [5][16]. - **International Performance**: International consumption is down mid-single digits, particularly in the U.K. due to high promotional activity and the comparison to the launch of Rossmann in Germany [9][10]. Financial Performance - **Q3 vs. Q4 Expectations**: Q3 is expected to perform at or above the 2%-5% growth range, while Q4 may see a negative impact due to shipment comparisons from the previous year, potentially resulting in a double-digit decline in net sales [7][8]. - **Pipeline Impact**: The pipeline impact is quantified at about 4 points for the second half, affecting overall growth expectations [6]. Retail Strategy - **Shelf Space Gains**: e.l.f. has consistently gained shelf space across retailers, with a focus on productivity driving these gains. The brand remains the most productive in terms of dollar per linear foot [23][24]. - **Retail Partnerships**: The company has expanded its presence in major retailers like Target, Walmart, and Ulta, with Target being the largest partner [19][20][26]. Innovation and Product Development - **Innovation Strategy**: e.l.f. focuses on community-driven innovation, launching products based on consumer demand and maintaining a three-year pipeline for new products [36][38]. - **Upcoming Innovations**: The company is optimistic about its spring innovation pipeline, which includes several highly anticipated products [31][32]. Acquisition and Growth Potential - **Rhode Acquisition**: e.l.f. views the acquisition of Rhode as a significant growth opportunity, with Rhode achieving $212 million in net sales with just 10 products. The brand is expected to expand its distribution and innovation pipeline [40][48]. - **Skincare Market**: e.l.f. sees a massive opportunity in the skincare market, with Naturium and e.l.f. Skin complementing each other. The skincare segment is projected to be a key driver of growth [57][59]. Capital Allocation and Financial Health - **Stock Repurchase**: e.l.f. recently repurchased $50 million of stock, indicating confidence in the company's long-term potential despite market volatility [30]. - **SG&A Expenses**: The company expects a significant increase in SG&A expenses, primarily due to investments in marketing and infrastructure to support growth [66][70]. Consumer Behavior and Market Conditions - **Consumer Spending**: Despite macroeconomic concerns, e.l.f. has seen strong consumer spending during the holiday season, indicating resilience in its value proposition [80]. Conclusion - e.l.f. Beauty is positioned for continued growth through strategic retail partnerships, innovative product development, and a strong focus on consumer engagement. The company remains optimistic about its market share potential and the impact of its recent acquisitions on future performance.

Key Takeaways Gross margin fell 165 bps to 69% as tariffs outweighed pricing and mix benefits at e.l.f. Beauty. ELF's operating income and adjusted EBITDA fell as higher expenses continued to pressure profitability. Easing tariff comparisons later this year may support margin stabilization for e.l.f. Beauty. e.l.f. Beauty, Inc. (ELF) delivered another quarter of solid top-line momentum in the second quarter of fiscal 2026, though profitability remained under pressure as tariffs continued to weigh on costs. ...

e.l.f. Beauty, Inc. (NYSE:ELF) is included in our list of the 12 oversold global stocks to invest in. Strong Operational Momentum and Market Expansions Maintains Bullish Sentiment on e.l.f. Beauty (ELF) On November 25, 2025, e.l.f. Beauty, Inc. (NYSE:ELF) saw Morgan Stanley’s Dara Mohsenian reaffirm a “Buy” rating with a $121 price target. The investment firm’s bullish stance reflects the company’s strong market performance and growth potential, as evidenced by U.S. scanner data. The data revealed 15.3% ...

Core Viewpoint - E.l.f. Beauty is facing challenges in a tough market environment, but it continues to grow and gain market share despite recent stock performance issues [1][2]. Group 1: Company Performance - E.l.f. Beauty has reported sales growth while much of the cosmetics industry is under pressure, guiding for full-year growth of 18% to 20% in the 2026 fiscal year [4]. - The company remains popular among consumers, being the favorite teen cosmetics brand for the eighth consecutive year and gaining traction across multiple generations [4]. - However, earnings per share (EPS) have significantly decreased from $0.33 to $0.05 in the fiscal second quarter, indicating challenges in maintaining profitability [5]. Group 2: Market Environment - The overall discretionary spending is down, impacting E.l.f.'s organic performance, and the company is heavily affected by tariffs due to 80% of its products being produced in China [2]. - Despite the challenges, the lower-cost nature of E.l.f.'s products may attract customers switching from premium brands [3]. Group 3: Stock Performance - E.l.f. stock has seen a decline of 45% over the past year, but it has outperformed the S&P 500 over longer periods, with total returns of 71% over three years and 216% over five years [8]. - The current price-to-earnings ratio of 50 suggests that the market still sees strong long-term prospects for the company [9].

Core Viewpoint - e.l.f. Beauty, Inc. is currently facing challenges, including tariff issues and high short interest, which have led to a decline in stock performance, despite its potential as an investment [1][2]. Group 1: Company Overview - e.l.f. Beauty, Inc. operates in the cosmetics and skincare sector, offering products under various brands such as e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare [2]. - The company's market capitalization is currently approximately $4.6 billion, which is perceived as low given its brand potential [2]. Group 2: Investment Sentiment - Jim Cramer expressed a belief in the company's potential, suggesting it could be a buy despite acknowledging recent operational mistakes related to cost structure [2]. - There is a contrasting view that other AI stocks may present greater upside potential and lower downside risk compared to e.l.f. Beauty [2].

Core Insights - The article discusses three mid-cap stocks with potential for significant growth, specifically CRISPR Therapeutics, Viking Therapeutics, and e.l.f. Beauty, which have market caps between $2 billion and $10 billion [1][2]. CRISPR Therapeutics - CRISPR Therapeutics has a market cap of approximately $5.2 billion and offers an approved gene therapy treatment, Casgevy, for sickle cell disease and transfusion-dependent beta thalassemia, valued at over $2 million per treatment [3][5]. - The rollout of Casgevy has been slow, with around 300 patients referred to treatment centers, leading to investor disappointment; the company has reported net losses of $451 million over the past nine months [5][6]. Viking Therapeutics - Viking Therapeutics, with a market cap of around $4.3 billion, is developing a GLP-1 weight loss drug, VK2735, which is currently in phase 3 trials [7][8]. - In earlier trials, VK2735 helped participants lose up to 14.7% of their body weight in 13 weeks; the potential market for GLP-1 drugs could reach $95 billion by 2030 [10][11]. - Viking has incurred losses exceeding $237 million over the past year and does not currently generate revenue, making it a higher-risk investment [11]. e.l.f. Beauty - e.l.f. Beauty has a market cap of approximately $4 billion and is popular among teens, ranking as the top cosmetics brand with a 36% mindshare in a recent survey [12]. - The company projects revenue of around $1.6 billion and adjusted net income of at least $165 million for the year, despite share prices dropping over 40% due to tariff exposure from manufacturing 80% of its products in China [13][14]. - e.l.f. has raised prices on many products by $1, which may help it navigate current challenges; if tariffs are resolved, the stock could see significant growth [14].

Revenue Performance - e.l.f. Beauty reported a 14% year-over-year increase in net sales for FY26Q2, reaching $344 million, driven by the Rhode brand acquisition contributing approximately $52 million (about 17 percentage points) to sales growth[2][9] - Excluding Rhode, comparable sales decreased by approximately 3% due to a temporary halt in shipments to some retailers following a price increase effective August 1[2][9] Profitability and Margins - Gross margin for the quarter was 69%, down 190 basis points year-over-year, primarily impacted by increased tariffs on imported goods from China[2][9] - Adjusted EBITDA was $66.2 million, with a margin of 19%, reflecting a 4% decline year-over-year; adjusted net income was $41.7 million, with diluted earnings per share at $0.68, down from $0.77 in the same period last year[2][9] Full-Year Guidance - For FY26, the company projects net sales between $1.55 billion and $1.57 billion, representing an 18%-20% year-over-year growth, with Rhode expected to contribute approximately $200 million[3][10] - Management anticipates gross margin improvement to approximately 71% in the second half, up roughly 200 basis points sequentially, driven by pricing adjustments and Rhode's contribution[3][10] Tariff and Supply Chain Challenges - Approximately 75% of products sourced from China are subject to a 45% tariff rate, with each 10-percentage-point increase in tariffs estimated to impact annual gross profit by about $17 million[4][11] - Despite facing significant tariff headwinds, the company expects full-year gross margin to decline by only about 100 basis points due to price increases and product mix optimization[4][11] Market Position and Brand Growth - The core e.l.f. brand continues to gain market share, with consumption growth of 7% in Q2, approximately three times the category growth rate, and a market share increase of 140 basis points[5][12] - e.l.f. ranked as the top favorite teen makeup brand for the eighth consecutive time in Piper Sandler's survey, indicating strong brand recognition and loyalty[5][12] International Expansion - International sales grew by 2% year-over-year in Q2, with plans to launch in new markets including Rossmann Poland and Sephora in GCC countries[5][12] - Current international sales account for approximately 20% of total sales, suggesting significant growth potential compared to peers[5][12] Brand Building and Operational Efficiency - e.l.f. has enhanced brand influence through a "disruptive marketing engine," with unaided brand awareness increasing significantly over the past five years[6][13] - The successful transition to a new SAP system is expected to improve operational efficiency and support future scaling[6][13]

Core Insights - e.l.f. Beauty has launched its products in the Gulf Cooperation Council (GCC) region, partnering exclusively with Sephora to enhance its international presence [1][3] - The GCC is identified as the most requested region for e.l.f. products among areas without retail presence, with social media mentions increasing by 38% [2] - The launch includes a marketing campaign titled 'eyes.lips.finally' aimed at engaging the local community and promoting e.l.f.'s commitment to quality and affordability [2][3] Company Expansion - e.l.f. Beauty's non-U.S. sales accounted for approximately 20% of total net sales in the second quarter of FY26, indicating a strong international growth strategy [4] - The partnership with Sephora, which began in 2024 with a launch in Mexico, will see e.l.f. products available in all 70 Sephora stores across the GCC starting November 21 [3] Marketing Strategy - e.l.f. is utilizing high-visibility marketing tactics in the GCC, including outdoor advertising along Dubai's Golden Boulevard and digital screen takeovers in major malls [2] - The company aims to connect with the community through its marketing efforts, emphasizing its mission to make beauty accessible to everyone [5]

Group 1 - The meeting features e.l.f.'s management team, including Chairman and CEO Tarang Amin and CFO Mandy Fields [1] - The session is hosted by Bonnie Herzog, an analyst from Goldman Sachs specializing in beverages, household and personal care, nicotine, and convenience stores [1] - The meeting aims to discuss the company's performance and strategic direction [3]

Summary of e.l.f. Beauty Fireside Chat - November 14, 2025 Company Overview - **Company**: e.l.f. Beauty (NYSE: ELF) - **Key Speakers**: Tarang Amin (Chairman and CEO), Mandy Fields (CFO) Key Points Industry and Market Trends - The U.S. mass beauty market has shown a growth of 2% in the last quarter, consistent with a decade-long trend [3][4] - e.l.f. has gained 160 basis points of market share recently, marking 27 consecutive quarters of market share gains [3][4] - e.l.f. is the number one unit share brand and number two dollar share brand in the beauty market, with significant potential for future growth [4] Financial Performance - e.l.f. experienced a surprising stock price pullback following FQ2 results, which the management deemed an overreaction [2] - The company repurchased $50 million of shares, reflecting confidence in its business fundamentals [2] - Organic sales declined by 3% in FQ2, primarily due to a strategic decision to halt shipments to certain retailers [6][12] - Consumption trends remained strong, with a 7% increase in consumption despite shipment issues [16][20] Shipment and Inventory Management - The decision to stop shipments was a tactical move to ensure retailers reflected the correct pricing after a price increase [7][10] - Normal shipment patterns resumed post-Q2, with no lingering issues expected in FQ3 [13][20] - The company anticipates that shipments will continue to lag behind consumption in the second half of the year due to previous expansions in retail space [15][16] International Expansion - International growth was reported at 2% in FQ2, impacted by the previous year's launch at Rossmann [14][47] - The U.K. market has faced challenges due to increased promotional activity from competitors, but e.l.f. continues to gain market share [48] - Future growth is expected from markets like Germany and the GCC, with significant expansion plans in place [44][50] Product Innovation and Pricing Strategy - e.l.f. plans to launch new products in spring 2026, with expectations of strong performance following previous successful launches [27][78] - A 15% price increase was implemented, with management pleased with the resulting consumption trends [74] - The company maintains a strong value proposition, with 75% of its portfolio priced at $10 or less [80] Acquisition of rhode - The acquisition of rhode is seen as a strategic move to enter the prestige beauty segment, with strong initial sales performance [81][84] - rhode is expected to contribute positively to e.l.f.'s overall margins and growth trajectory [56][58] - The brand has shown significant momentum in retail launches, outperforming previous records at Sephora [82][84] Gross Margin and EBITDA Outlook - e.l.f. expects a 200 basis point sequential improvement in gross margins for the second half of the year, despite tariff challenges [55][63] - Marketing spend is projected to increase in the second half, impacting EBITDA margins but aimed at driving long-term growth [62][63] Technology and AI Integration - e.l.f. is in the early stages of leveraging AI for operational efficiencies, particularly in marketing and consumer engagement [68][71] Conclusion - e.l.f. Beauty remains optimistic about its growth prospects, driven by strong consumption trends, strategic pricing, and innovative product launches, alongside the successful integration of rhode into its portfolio [39][84]