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]

How does a brand hook a customer? Ones like Hailey Bieber’s Rhode, Victoria’s Secret, LVMH, Banana Republic, Equinox, Hermès and Nike turn to this agency. https://t.co/6fLStlwNXC ...

Brand Performance & Growth - Road brand is projected to reach $300 million on an annualized basis for the current fiscal year [3] - The projected $300 million represents a 40% year-over-year growth for the Road brand [3] Product Launch & Marketing - Haley Bieber's birthday kit will be launched next week on November 12th [2] - Road brand will be launching in the UK with Sephora next week on November 10th [2] Key Personnel Involvement - Haley Bieber continues to be involved with the Road brand [2] - E L F Beauty expresses excitement about Road's contribution to the company [2]

Rhode founder Hailey Bieber said she wishes she finished high school.⁠🎥 Watch the full video, where Bieber also discusses her company’s $1 billion sale to E.l.f Beauty, the journey of becoming a mom and how she defines success: https://t.co/9221JAV3BI https://t.co/uuiMOp9aeq ...

Rhode founder Hailey Bieber said reports of grainy textures in the company's Lip Treatment “broke my heart.”Watch more as she discusses her company’s $1 billion sale to E.l.f Beauty, the journey of becoming a mom and how she defines success. 🔗: https://t.co/APSzS89AaO https://t.co/ln6aFQ7rSx ...

Brand Influence - Rhode has become one of beauty's more influential labels [1] - Rhode has changed the way many young women think about makeup and skin care [1] Key Person - Hailey Bieber is the founder of Rhode [1]

Core Insights - The article discusses the recent trend of brand ownership changes in various industries, highlighting significant acquisitions and sales of well-known brands, indicating a reshuffling of the market landscape [2][3]. Group 1: Brand Acquisitions and Sales - Canada Goose Holdings Inc. is considering selling part or all of its shares due to declining growth and stock price issues, despite previously being popular in China [8]. - Nestlé has fully acquired Xu Fu Ji, a well-known candy brand in China, after initially purchasing 60% of its shares for $1.7 billion in 2011 [13]. - The American makeup brand elf Beauty announced the acquisition of the brand Rhode, founded by Hailey Bieber, for $1 billion, despite Rhode being only three years old and having limited product offerings [11]. Group 2: Market Dynamics - The article notes that the sale of high-end brands like Costa and Peet's Coffee reflects the competitive pressure from low-cost coffee brands, suggesting a shift in consumer preferences [6]. - The acquisition of Versace by Prada is highlighted, with financing plans involving €2.5 billion, indicating ongoing interest in luxury brand consolidation [12]. - Grubhub's unexpected sale for $650 million raises questions about the valuation of major players in the food delivery market [4]. Group 3: Emerging Trends - The rapid rise and subsequent sale of brands like Rhode, which achieved significant sales with limited products, illustrates the changing dynamics of brand success in the digital age [11]. - The article emphasizes that ownership changes are not merely transactions but represent strategic moves in a continuously evolving market landscape, with each sale presenting new opportunities and challenges [3].

Core Viewpoint - The acquisition of Rhode by e.l.f. Beauty is expected to significantly enhance the company's market position and growth potential in the cosmetics industry, particularly through increased distribution and product expansion opportunities [3][5][12]. Company Overview - e.l.f. Beauty has successfully gained substantial market share in the mass cosmetics category, resonating well with younger consumers and expanding its retail presence [2]. - The company has seen its stock price more than double since earlier purchases, indicating strong market confidence following the acquisition of Rhode [3]. Acquisition Details - The acquisition of Rhode, valued at $1 billion, closed in August and is seen as a transformative move for e.l.f. Beauty, providing access to a high-end skincare brand with impressive sales of $212 million in under three years [5][6]. - Rhode's brand, backed by celebrity Hailey Bieber, has only a limited product range, presenting significant opportunities for e.l.f. to expand its offerings [7]. Distribution Strategy - Distribution gains are identified as a critical growth driver for consumer products, and e.l.f. is poised to leverage its existing strengths in influencer marketing to promote the Rhode brand [8][11]. - Rhode has already begun entering Sephora stores, with plans to expand into U.K. locations and potentially other retailers like Ulta Beauty and Target, which could further enhance its market presence [9][10]. Financial Outlook - e.l.f. Beauty's stock is currently trading at a forward price-to-earnings (P/E) ratio of 42, with a price/earnings-to-growth (PEG) ratio of 0.5, suggesting that the stock may be undervalued given its growth prospects [12].

So when you look at a business like ours, having the capability that an ELF can offer both from an operational standpoint as well as from a retail perspective put us in a great position as we look to expand the brand and really to drive Haley's vision around driving accessibility from a global perspective. >> So Tang, how do you keep Haley involved, incentivized, engaged. We were just talking about there's a new new compensation package out from the board of of Tesla this morning.And how do you also think a ...

Acquisition & Strategy - Elf Beauty acquired Road in a blockbuster $1 billion deal [1] - The acquisition aligns with Elf Beauty's mission to build disruptive brands that shape culture and connect communities [4] - Elf Beauty aims to help Road realize its vision of becoming a major global brand [8] - Elf Beauty does not over-integrate acquired brands, allowing founders to maintain their vision and teams [9][10] Road's Performance & Vision - Road achieved $212 million in net sales in less than 3 years, selling directly to consumers with only 10 products [3] - Road's vision, driven by founder Haley Bieber, is to build a global brand and expand accessibility beyond the United States [5] - Road's success is attributed to Haley Bieber's influence as a tastemaker, her connection with the community, and the brand's integration of lifestyle and product [11] Haley Bieber's Role - Haley Bieber is not just a celebrity but a thoughtful founder with incredible instincts and a strong connection with consumers [8] - Haley Bieber will continue to be the chief creative officer and chief innovation officer of Road, and also a strategic advisor to Elf Beauty [9] Digital Strategy & Target Audience - Elf Beauty is the number one brand among Gen Z, Gen Alpha, and millennials [13] - Elf Beauty's digital strategy focuses on engaging and entertaining its community across various social platforms, including TikTok, Twitch, and Roblox [13][14] - Elf Beauty has a number one branded experience on Roblox with a 98% rating and over 16 million plays [14] Expansion & Retail - Road is launching in Sephora locations across the nation [1] - Elf Beauty's existing digital and physical retail capabilities, as well as its global expansion, were key factors in Road's decision to be acquired [6] - Road's expansion into Canada with Sephora has seen unprecedented demand [12]