[Table_Title] 研究报告 Research Report 20 Nov 2025 e.l.f. Beauty (ELF US) 收购 Rhode 驱动营收增长，关税与投资加大致短期利润承压 Rhode Acquisition Drives Revenue Growth; Tariffs and Investments Weigh on Near-Term Profits 寇媛媛 Yuanyuan Kou 吴颖婕 Mindy Wu yy.kou@htisec.com mindy.yj.wu@htisec.com [Table_yemei1] 热点速评 Flash Analysis 核心品牌 e.l.f.在竞争激烈的美妆市场中持续扩大份额，国际扩张步伐稳健，但短期增长受去年高基数影响。 第二 季度 e.l.f.品牌消费额增长 7%，约为行业增速的三倍，市场份额提升 140bp，连续第 27 个季度实现份额增长。在 Piper Sandler 的青少年调查中，e.l.f.连续八次位列最受青少年喜爱的美妆品牌首位，品牌认知度在过去五年间显著 提升。公司近期成功实施产品提价，75%的产品价格仍保持在 10 ...

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]

e.l.f. Beauty, Inc. (NYSE:ELF) is one of the stocks Jim Cramer recently put under a microscope. A caller asked for Cramer’s thoughts on the stock given that it has been hit recently, and here’s what he had to say in response: “Boy, you know, I was shocked at that. I’m such a big believer in ELF, and it just keeps getting hit and hit and hit, and I don’t know, it’s only $4.6 billion now. That seems very, very low. I know that it did make some mistakes in terms of cost structure, but I’m willing to say that ...

Core Insights - e.l.f. Beauty is launching "The Sound of Kindness" campaign to promote positivity on social media platforms [1] - The initiative is in collaboration with Beekman 1802 and Kindness.org, aiming to combat negative online behaviors [1] - The campaign leverages the power of sound to encourage a movement of collective goodness and reduce doom scrolling [1] Company Initiatives - The campaign is set to celebrate World Kindness Day 2025, highlighting e.l.f. Beauty's commitment to social responsibility [1] - The partnership with Kindness.org emphasizes the research-backed approach to fostering kindness through sound [1] - The initiative aims to engage the community in a positive manner, shifting social algorithms towards more uplifting content [1]

Core Insights - e.l.f. Beauty is capitalizing on economic constraints by maintaining affordability, with 75% of its products priced at $10 or less despite a recent $1 price increase [1][2] - The company reported a 14% increase in quarterly net sales to $343.9 million, slightly below analyst expectations [3] - e.l.f. Beauty forecasts fiscal 2026 revenue between $1.55 billion and $1.57 billion, indicating 18%–20% growth, although below analyst expectations of $1.65 billion [4] Financial Performance - Quarterly net sales rose to $343.9 million from $301.1 million a year earlier, reflecting a 14% increase [3] - Adjusted earnings per share reached $0.68, surpassing consensus estimates of $0.57 [4] Challenges and Strategies - The company anticipates over $50 million in additional annual costs due to higher U.S. tariffs, with the weighted average tariff rate increasing to about 60% from 25% [5] - To mitigate tariff impacts, e.l.f. Beauty is diversifying its supply chain, adjusting prices, and expanding internationally [6] Innovation and Growth - e.l.f. Beauty continues to innovate, with the recent acquisition of Hailey Bieber's Rhode brand for $800 million, contributing to its growth forecast [7] - Currently, only 20% of e.l.f. Beauty's sales come from international markets, indicating significant growth potential compared to competitors [8] Leadership and Vision - The company emphasizes agility and growth amidst volatility, with a focus on digital innovation and AI integration [9] - e.l.f. Beauty aims to become the No. 1 color cosmetics brand, maintaining a positive outlook despite external challenges [10]

Financial Performance - Net sales increased by $42.9 million, or 14%, to $343.9 million for the three months ended September 30, 2025, compared to $301.1 million for the same period in 2024[117] - Gross profit rose by $24.8 million, or 12%, to $238.9 million for the three months ended September 30, 2025, with a gross margin decrease to 69% from 71% due to tariffs[118] - For the six months ended September 30, 2025, net sales increased by $72.1 million, or 12%, to $697.7 million compared to $625.6 million for the same period in 2024[123] - Net income for the three months ended September 30, 2025, was $2.996 million, a decrease from $19.020 million in the same period of 2024[116] Expenses and Costs - Selling, general and administrative (SG&A) expenses increased by $45.0 million, or 24%, to $231.1 million for the three months ended September 30, 2025, with SG&A as a percentage of net sales rising to 67%[119] - Interest expense increased to $9.2 million for the three months ended September 30, 2025, compared to $3.8 million for the same period in 2024, primarily due to increased debt[121] Acquisition and Financing - The company acquired HRBeauty LLC ("rhode") for $896.5 million on August 5, 2025, funded through cash, equity, and potential earnout[113] - The company borrowed an incremental term loan of $600.0 million on August 5, 2025, to finance the acquisition of rhode[114] - Cash flows from financing activities for the six months ended September 30, 2025, provided $594.9 million, primarily related to the Fifth Amendment establishing the Term Facility[141] Cash and Liquidity - As of September 30, 2025, the company had $194.4 million in cash and cash equivalents and $243.3 million in borrowing capacity under its Amended Revolving Credit Facility[131] - The unused balance of the Amended Revolving Credit Facility as of September 30, 2025, was $243.3 million[135] - The company anticipates funding ongoing cash needs from existing cash, cash generated from operations, and if necessary, draws on the Amended Revolving Credit Facility[135] - The company expects to meet its planned operating, investing, and financing needs for the next twelve months through operating cash flow and available financing[135] Tax and Working Capital - The effective income tax benefit rate was 175.1% for the three months ended September 30, 2025, compared to an effective rate of 31.9% for the same period in 2024[122] - As of September 30, 2025, working capital was $246.0 million, an increase of 14.5% from $214.8 million as of March 31, 2025[133] Cash Flow Activities - Net cash provided by operating activities for the six months ended September 30, 2025, was $50.6 million, compared to $12.4 million for the same period in 2024, representing a significant increase of 308.1%[138][139] - Net cash used in investing activities for the six months ended September 30, 2025, was $595.0 million, primarily related to the rhode Acquisition[140] Interest Rates - The interest rate for the Term Facility as of September 30, 2025, was approximately 6.3%[152] - The interest rate for the Revolving Credit Facility as of September 30, 2025, was approximately 6.2%[152] Credit Facilities - The Fourth Amendment established a revolving credit facility of $500.0 million, available for working capital and acquisitions, with a maturity date of March 3, 2030[147]

Group 1: Q3 Earnings Overview - The Q3 earnings season has started positively, with 91% of S&P 500 companies reporting results, and analysts expect a 13.1% increase in earnings per share, marking the fourth consecutive quarter of double-digit growth [2][9] - Initial expectations were lower, with analysts predicting a 7.9% increase in earnings per share as of September 30 [3] - Companies have reported more positive earnings surprises (82%) than negative ones (18%), with 77% of companies also reporting positive revenue surprises [9] Group 2: Notable Company Earnings - Instacart reported GAAP earnings per share of $0.51, exceeding estimates of $0.50, with revenue of $939 million, surpassing expectations of $933 million [6] - Constellation Energy's stock fell nearly 6% after reporting GAAP earnings per share of $2.97, missing estimates of $3.05, although revenue of $6.57 billion exceeded expectations [12] - Wendy's reported revenue of $549 million, a 3% decline year-over-year but above estimates of $534 million, with earnings per share of $0.24 beating expectations of $0.20 [16][17] - Block's shares fell 15% after reporting earnings per share of $0.54 on revenue of $6.11 billion, missing estimates of $0.68 per share and $6.31 billion in revenue [23] - Airbnb's stock rose 5% as it reported 133.6 million nights booked, a 9% increase year-over-year, driven by international bookings [32][33] Group 3: Industry Trends and Challenges - The earnings growth rate for Q3 is on track to increase from Q2, driven by tech enthusiasm around artificial intelligence and ongoing tariff concerns [10] - Consumer-facing companies are experiencing pressures from affordability and sentiment, with mentions of government shutdown impacts increasing [11] - Under Armour reported a net loss of $0.04 per share, with revenue declining 4.7% year-over-year, attributed to challenging consumer demand [35][36]

分组1 - e.l.f. Beauty (ELF) reported its Q2 FY26 earnings, resulting in a stock crash of over 40% due to missing both revenue and earnings estimates [1] - The company provided a soft forward outlook, indicating potential challenges ahead [1] 分组2 - Amrita runs a boutique family office fund focused on sustainable, growth-driven companies that aim to maximize shareholder equity [1] - The fund's investment strategy is informed by Amrita's previous experience in high-growth supply-chain start-ups and venture capital [1] - Amrita's newsletter, The Pragmatic Optimist, emphasizes democratizing financial literacy and simplifying complex macroeconomic concepts [1]