Investment Rating - The report does not explicitly provide an investment rating for e.l.f. Beauty, but it indicates a positive outlook for the company's performance in FY26H1, suggesting potential for growth [4]. Core Insights - e.l.f. Beauty reported a net sales increase of 9% year-over-year for FY26Q1, reaching $354 million, with a 5% growth in the U.S. market and a 30% increase in international markets [2][9]. - The company's gross margin declined by approximately 2.15 percentage points to 69%, primarily due to tariffs, although this was partially offset by favorable foreign exchange impacts [2][9]. - The company maintained a strong market share growth of 2.1%, marking the 26th consecutive quarter of growth [2][9]. - Adjusted EBITDA for FY26Q1 was $87.1 million, up 12% year-over-year, while net profit decreased by 30% to $33.31 million due to the absence of income tax benefits [3][10]. - e.l.f. Beauty completed the acquisition of Rhode for $800 million, which is expected to enhance growth through increased brand awareness and distribution [6][12]. Summary by Sections Financial Performance - FY26Q1 net sales were $354 million, a 9% increase year-over-year, with U.S. sales up 5% and international sales up 30% [2][9]. - Gross margin decreased to 69% due to tariffs, with SG&A expenses at $196 million, accounting for 55% of net sales [2][9]. - Adjusted EBITDA was $87.1 million, representing 25% of net sales, while net profit was $33.31 million, down 30% year-over-year [3][10]. Market Outlook - The company did not provide a full-year financial forecast for FY26 due to uncertainties from tariffs but remains optimistic about FY26H1 performance, expecting net sales growth to exceed 9% [4][11]. - The adjusted EBITDA margin for FY26H1 is projected to be around 20%, down from 23% in the previous year, influenced by tariffs and marketing expenditures [4][11]. Strategic Initiatives - e.l.f. Beauty's acquisition of Rhode is expected to significantly enhance market coverage and growth potential, with plans to launch Rhode products in major retail outlets [6][12]. - The company is implementing strategies to mitigate tariff impacts, including pricing adjustments and supply chain optimization [4].

格隆汇8月7日｜美国化妆品公司E.l.f. Beauty(ELF.US)夜盘跌超13.2%，报95.8美元。消息面上，E.l.f. Beauty公布，第二季度营收同比增长9%至3.54亿美元，略胜预期；净利润同比下降30%至3330万美元， 调整后每股盈利89美仙，高于市场预期的84美仙；毛利率下降约215个基点至69%。公司并未提供全年 收入指引，主因是新关税可能带来多种潜在后果。(格隆汇) ...

Group 1 - e.l.f. Beauty reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, but down from $1.1 per share a year ago, representing an earnings surprise of +5.95% [1] - The company achieved revenues of $353.74 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.23% and up from $324.48 million year-over-year [2] - e.l.f. Beauty has surpassed consensus EPS estimates three times and revenue estimates four times over the last four quarters [2] Group 2 - The stock has underperformed, losing about 12.5% since the beginning of the year, while the S&P 500 gained 7.1% [3] - The current consensus EPS estimate for the coming quarter is $0.77 on revenues of $356.31 million, and for the current fiscal year, it is $3.65 on $1.65 billion in revenues [7] - The Zacks Industry Rank indicates that the Cosmetics industry is currently in the bottom 33% of over 250 Zacks industries, which may impact stock performance [8] Group 3 - The estimate revisions trend for e.l.f. Beauty was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market [6] - Future stock movements will depend on management's commentary during the earnings call and changes in earnings expectations [3][4]

Financial Data and Key Metrics Changes - In Q1 2026, net sales grew by 9% on top of a 50% growth in Q1 of the previous year, reaching $354 million [5][32] - Adjusted EBITDA was $87 million, up 12% year-over-year [5][34] - Gross margin for Q1 was 69%, down approximately 215 basis points compared to the prior year, primarily due to incremental tariff costs [33] - Adjusted net income was $51 million, or $0.89 per diluted share, compared to $64 million, or $1.10 per diluted share a year ago [35] Business Line Data and Key Metrics Changes - In color cosmetics, e.l.f. holds the number one unit share brand with approximately 15% share, and the number two share brand with approximately 13% share, more than double from three years ago [7][14] - Skincare now drives nearly 20% of global consumption, more than double the level from a few years ago [17] - The Halo Glow Skin Tint was the top-selling cosmetics product on e.l.f.'s website in Q1 [14][21] Market Data and Key Metrics Changes - International net sales grew by 30% in Q1, with significant growth in existing markets and expansion into new markets [23][25] - In the UK, e.l.f. Cosmetics outpaced category growth by three times in Q1, increasing its rank from the number four brand to the number three brand [23] - International sales have increased from $28 million six years ago to $266 million today, representing 20% of total sales [25] Company Strategy and Development Direction - The company aims to more than double its business over the coming years, focusing on color cosmetics, skincare, and international expansion [6][31] - The acquisition of Rhode is expected to enhance e.l.f.'s position in accessible beauty and drive brand awareness [26][27] - The company plans to leverage its marketing and innovation capabilities to continue gaining market share across segments [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue gaining market share and capturing significant growth opportunities despite tariff uncertainties [26][40] - The company is monitoring consumer response to recent price increases and expects to maintain strong performance in the U.S. market [78][79] - Management highlighted the importance of innovation and value proposition in driving consumer engagement and sales growth [12][19] Other Important Information - The company ended the quarter with $170 million in cash, up from $109 million a year ago, and generated $20 million in free cash flow [35][36] - The transition to SAP was reported as successful, indicating strong operational capabilities [37][38] Q&A Session Summary Question: Can you talk about how much inventory might be trapped in at the 170% rate versus the 50% rate? - Management indicated that inventory consists of a mixture of tariff rates, with more of the 170% expected to flow through in Q2, leading to lower gross margins [45][46] Question: Can you expand on the greater than 9% sales growth for the first half? - Management confirmed that the addition of Rhode will help drive Q2 sales higher than Q1, with continued positive performance in the e.l.f. business [51][53] Question: What are your thoughts on the U.S. core business growth expectations? - Management remains optimistic about the U.S. business, expecting continued growth despite potential challenges from pricing and consumer behavior [64][66] Question: How have retail partners reacted to the price increases? - Overall acceptance of the price increase has been good, with transparency in communication contributing to positive feedback [81][82] Question: What is the expected revenue contribution from Road? - Management did not provide specific revenue figures but expressed confidence in Road's long-term accretive potential [124]

Financial Data and Key Metrics Changes - In Q1 2026, net sales grew by 9% following a 50% growth in Q1 2025, reaching $354 million [4][34] - Adjusted EBITDA increased by 12% to $87 million, with adjusted net income at $51 million or $0.89 per diluted share, down from $64 million or $1.10 per diluted share a year ago [34][37] - Gross margin for Q1 was 69%, down approximately 215 basis points year-over-year due to tariff costs [35] Business Line Data and Key Metrics Changes - In color cosmetics, e.l.f. holds a 15% unit share, making it the number one brand, with significant growth in market share over the past three years [6][13] - Skincare now accounts for nearly 20% of global consumption, more than double from previous years, with e.l.f. Skin and Naturium being the fastest-growing brands [16][20] - The Halo Glow Skin Tint was the top-selling product in Q1, showcasing the success of innovation strategies [10][13] Market Data and Key Metrics Changes - International net sales grew by 30% in Q1, with significant growth in the UK, where e.l.f. outpaced category growth by three times [26][28] - The company has expanded its presence in new markets, including a successful launch in over 1,200 stores in the Netherlands and Belgium [27][28] - International sales now represent 20% of total sales, up from 10% six years ago, indicating strong growth potential [28] Company Strategy and Development Direction - The acquisition of Rhode is expected to enhance e.l.f.'s position in the beauty market, with plans to accelerate brand awareness and expand distribution [5][30] - The company aims to double its business over the coming years by capitalizing on opportunities in color cosmetics, skincare, and international markets [5][29] - E.l.f. continues to focus on innovation and disruptive marketing to maintain its competitive edge in the beauty industry [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to gain market share despite challenges from tariffs and a competitive landscape [29][41] - The company is monitoring consumer response to recent price increases and expects to see continued growth in the first half of the year [41][80] - Future guidance will depend on clarity regarding tariffs, with expectations for net sales growth above 9% in the first half of the year [41][43] Other Important Information - The company ended Q1 with $170 million in cash, up from $109 million a year ago, and generated $20 million in free cash flow [37][39] - E.l.f. is transitioning to SAP for its ERP system, which is expected to enhance operational efficiency [39][40] Q&A Session Summary Question: Can you talk about how much inventory might be trapped in at the 170% rate versus the 50% rate? - Management indicated that inventory consists of a mix of tariff rates, with expectations for more 170% inventory to flow through in Q2, leading to lower gross margins [46][48] Question: Can you expand on the greater than 9% sales growth for the first half? - Management confirmed that the addition of Rhode will contribute to higher sales growth in Q2, and they are optimistic about the e.l.f. business performance [54][56] Question: What channels or partners have been stronger or weaker in the U.S. market? - Management noted growth across brick-and-mortar and e-commerce channels, but did not provide specific details on weaker channels [90][92] Question: How is the company managing the Road acquisition and its impact on margins? - Management stated that while Road is expected to be accretive in the long term, there will be initial dilution in Q2 margins due to the lack of sell-in to Sephora [124][125] Question: Can you provide context on the gross margin expectations for Q2? - Management acknowledged that Q2 gross margins will be impacted by higher tariff costs, but pricing benefits from recent increases are expected to help offset some of this pressure [130][131]

Financial Performance - e.l.f. Beauty reported quarterly earnings of 89 cents per share, exceeding the Street estimate of 84 cents [1] - Quarterly revenue reached $353.73 million, surpassing the analyst consensus estimate of $349.43 million and increasing from $324.47 million in the same period last year [1] - Net sales increased by 9% to $353.7 million [4] - Adjusted EBITDA was $87.1 million, representing 25% of net sales, which is a 12% year-over-year increase [4] Market Position - The company gained 210 basis points of market share in the first quarter of fiscal 2026, continuing a trend of consistent, category-leading growth over the past 26 quarters [2] - The CEO highlighted the combination of value proposition, innovation, and marketing as key drivers of the company's results [3] Stock Performance - e.l.f. Beauty's stock was down 3.98% at $106 in extended trading following the earnings report [3] - The gross margin decreased approximately 215 basis points to 69%, primarily due to tariffs [4]

Financial Performance - e.l.f. Cosmetics' Q1 FY 2026 net sales increased by 9% year-over-year[14, 205] - The company achieved adjusted EBITDA growth of 12%[17] - e.l.f. Cosmetics has experienced 26 consecutive quarters of net sales growth and market share gains[21] - Adjusted net income for Q1 FY 2026 was $51 million, compared to $64 million in Q1 FY 2025[252] - Adjusted EPS for Q1 FY 2026 was $0.89, compared to $1.10 in Q1 FY 2025[253] Market Position and Growth Strategy - e.l.f. Cosmetics aims to double its net sales to $3 billion, with growth expected in cosmetics, skincare, and international markets[33] - The company has increased its unit share in the cosmetics category from approximately 7% in 2022 to around 15% today[43, 44] - e.l.f. Cosmetics is the 1 cosmetics brand at Target, holding a 21% dollar share[62] International Expansion - International net sales grew by 30% in Q1 FY 2026 year-over-year[135] - International penetration increased from 10% in FY 2020 to 20% in Q1 FY 2026[164] Tariffs - Tariffs are expected to have an annualized cost of goods sold (COGS) impact of $50 million[295, 298]

Execution Version FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment") is entered into as of August 5, 2025 (the "Amendment Effective Date"), by and among e.l.f. Cosmetics, Inc., a Delaware corporation ("e.l.f. Cosmetics"), J.A. RF, LLC, a Delaware limited liability company ("J.A. RF"), W3LL People, Inc., a Delaware corporation ("W3LL"; collectively with e.l.f. Cosmetics and J.A. RF, the "Borrowers"), e.l.f. Beauty, Inc., a ...

Core Viewpoint - E.l.f. Beauty's profits have declined by 30% in the fiscal first quarter due to new tariffs on Chinese imports impacting the company's financial performance [1][2]. Financial Performance - The company's net income for the three months ended June 30 fell to $33.3 million, down from $47.6 million a year ago, representing a 30% decrease [2][6]. - Sales increased to $354 million, marking a 9% rise from $324 million a year earlier, although this is the second consecutive quarter of single-digit revenue growth [7][10]. - Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins are expected to be 20%, down from 23% in the same period last year [3]. Market Conditions - The company has not provided a full-year revenue guide due to uncertainties surrounding tariffs, with CEO Tarang Amin highlighting the volatile macro environment [4][5]. - E.l.f. has raised prices by $1 to mitigate tariff costs and is working on diversifying its supply chain and expanding its business outside the U.S. [4][5]. Growth Outlook - Despite the slower growth in the fiscal first quarter, the company expects sales growth to exceed 9% in the first half of the fiscal year [3][8]. - The company continues to gain market share, outperforming the overall beauty category, which has been experiencing a slowdown [8]. Product Strategy - E.l.f.'s growth is driven by innovative product launches, including a new serum priced at $17, which is a lower-cost alternative to a similar high-end product [9]. - The recent acquisition of Hailey Bieber's beauty brand Rhode is expected to enhance E.l.f.'s sales, with its products set to launch in Sephora stores in September [11].

Core Insights - e.l.f. Beauty has completed its Adhishthana Himalayan formation and is currently in a phase of structural uncertainty, specifically in phase 11 of an 18-phase cycle [1][6] - The stock experienced a significant ascent of approximately 104% in phase 9, followed by an additional 138% in phase 10, reaching a peak of 221 dollars before a 12% decline confirmed the peak [4][5] - Following the peak, e.l.f. Beauty entered a descent phase, dropping 78% over 400 days to a low near 48 dollars, aligning with the Adhishthana principles [5] Weekly Chart Analysis - The stock's ascent and peak formation adhered closely to the Adhishthana principles, with the peak confirmed at the 17th bar of phase 10 [4] - Currently, the stock is in a neutral zone after completing the descent leg of the Himalayan Formation [6] Monthly Chart Analysis - On the monthly chart, e.l.f. Beauty is in phase 2, which typically consists of a bearish Sankhya period followed by a bullish Buddhi period; however, the stock rallied during the Sankhya period, leading to misalignment with the principles [9][10] - The long-term direction of e.l.f. Beauty will become clearer once structural milestones, particularly Yajña and Phase 5 (C5), are established [10] Investor Outlook - The weekly chart indicates that the Himalayan move has concluded, with the peak established and the descent complete, placing the stock in a neutral position [11] - Investors who entered after the descent phase around the 50-dollar range may hold their positions, while new investors should wait for confirmation from upcoming structural phases before making new investments [12]