Core Insights - Hailey Bieber's skin care line, Rhode, is significantly boosting e.l.f. Beauty's sales, with net sales reaching $212 million in less than three years [1] - Despite a strong quarterly performance, e.l.f. Beauty's stock has declined approximately 8% over the past year, indicating skepticism from Wall Street [2] - JPMorgan analyst Andrea Teixeira raised concerns about a slowdown in organic growth, projecting it to drop to 2% in the latter half of the year, primarily due to reliance on the Rhode acquisition [3] Group 1: Business Performance - CEO Tarang Amin believes the recent shipment and demand discrepancies are due to accounting issues rather than a decline in popularity [4] - The company's growth strategy is supported by two main factors: the high-end appeal of Rhode and its strong presence in low-income markets through Dollar General [5][6] - e.l.f. Beauty is attracting new customers, with 60% of Dollar General shoppers being first-time cosmetic buyers, indicating a successful penetration into the value segment [6] Group 2: Market Position and Consumer Base - Amin expresses confidence in maintaining the company's growth streak, which has lasted for 28 quarters, due to a loyal customer base among Gen Z and millennials [7] - The brand's ability to resonate across various income groups is seen as a key strength, especially in the current inflationary environment [7]