e.l.f.(US:ELF) Benzingaยท2025-09-17 18:31Company Overview - e.l.f. Beauty has agreed to acquire rhode, a beauty brand founded by Hailey Bieber, known for high-performance, skin-focused products, marking a strategic move to enhance its portfolio and capitalize on consumer trends [1] - Bank of America (BofA) Securities has raised the price forecast for e.l.f. Beauty from $135 to $160, reflecting a positive outlook on sales growth driven by a strong brand launch at rhode [2] Sales and Financial Performance - BofA has adjusted fiscal 2026 sales growth for e.l.f. Beauty to +26% from +25%, anticipating better-than-expected elasticities and contributions from rhode [2] - The fiscal second quarter is expected to see a sales contribution from rhode of $44 million, up from a prior estimate of $42 million, indicating improving trends for e.l.f. Beauty [3] Market Position and Trends - Rhode is noted as Sephora's largest brand launch in North America to date, with expectations for faster replenishment benefiting e.l.f. Beauty in the fiscal second quarter [4] - Recent Nielsen data indicates that price hikes on e.l.f. products have largely offset volume declines, with all retailers adopting the increase by mid-to-late August [5] Margin and Growth Outlook - Continued margin pressure is anticipated in the fiscal second quarter due to elasticities, but this is expected to be offset by a stronger product mix and contributions from rhode later in FY26 [5] - Over the long term, sales growth for e.l.f. Beauty is expected to be primarily driven by volume [5] Stock Performance - e.l.f. Beauty's stock has increased by 3.97% to $148.98, reaching a new 52-week high, with a notable 132.68% return over the past six months, indicating strong momentum in the personal products industry [6]