Core Insights - Waldencast plc is set to report its Second Quarter Fiscal 2025 Results and Q3 2025 Financial Results on November 24, 2025, without hosting a conference call due to an ongoing strategic review [1] Company Overview - Waldencast plc aims to establish a global best-in-class beauty and wellness operating platform by developing, acquiring, and scaling purpose-driven brands [2] - The company's brand-led business model focuses on customer proximity, business agility, and market responsiveness while preserving each brand's unique identity [2] - The initial step towards this vision was the business combination with Obagi Medical and Milk Makeup, allowing brands to leverage operational scale and expertise in managing global beauty brands [2]

Core Viewpoint - Costco is highlighted as a strong investment opportunity due to its affluent customer base and superior value proposition, which has allowed it to maintain consistent strength amidst challenges faced by other retailers [1][2]. Costco - Costco has shown more than a mid-single-digit comparable sales growth on top of a strong gain from the previous year, indicating strong momentum expected to continue through the holiday season [2]. - The company benefits from inflationary pressures as higher-income and middle-income consumers seek value, leading them to Costco for its competitive pricing [4][5]. Competitive Landscape - Walmart is also positioned to perform well in various economic conditions, gaining market share through its value and convenience offerings [8]. - Ulta Beauty is noted for its innovation and strong momentum, particularly in the beauty and wellness sector, where spending remains robust even in challenging economic times [8][9]. Consumer Trends - The consumer spending backdrop is mixed, with limited winners in the current environment, particularly in consumer staples, which are at lows not seen since the late 90s [12]. - Shark Ninja is mentioned as a discretionary consumer durable player with upcoming earnings that may indicate a shift in sales momentum towards Q4 [13].

Core Insights - ODDITY Tech Ltd. will release its third quarter 2025 financial results on November 19, 2025, after market close [1] - A conference call to discuss the results will take place on November 20, 2025, at 8:30 a.m. Eastern Time [1] Company Overview - ODDITY is a consumer tech company focused on building and scaling digital-first brands in the beauty and wellness sectors [3] - The company serves approximately 60 million users through its AI-driven online platform, utilizing data science to meet consumer needs [3] - ODDITY owns brands such as IL MAKIAGE and SpoiledChild, with headquarters in New York City, an R&D center in Tel Aviv, and a biotechnology lab in Boston [3]

Core Viewpoint - Oddity Tech Ltd. is identified as an oversold mid-cap stock with significant growth potential, despite a recent price target reduction by KeyBanc Capital Markets from $90 to $80, maintaining an Overweight rating [1][2]. Group 1: Company Overview - Oddity Tech Ltd. operates as an AI-driven beauty and wellness platform, known for brands like IL MAKIAGE and SpoiledChild, utilizing machine learning and proprietary data to personalize products in skincare, cosmetics, and wellness [4]. - The company went public in 2023 and has rapidly gained attention in the digital beauty market [4]. Group 2: Financial Performance and Projections - KeyBanc projects that Oddity can achieve revenue growth exceeding 20% and long-term EBITDA margins above 20%, indicating strong potential for both top-line and margin expansion [2]. - The recent adjustment in price target is attributed to broader market trends affecting mid-cap growth stocks rather than any decline in Oddity's fundamentals [3]. Group 3: Strategic Positioning - Oddity's vertically integrated direct-to-consumer (DTC) model, along with aggressive investments in research and development, positions the company uniquely within the beauty-tech sector [3].

Performance Overview - Baron International Growth Fund gained 16.91% during Q2 2025, outperforming its benchmark MSCI ACWI ex USA Index, which appreciated 12.03% [3] - The Fund has exceeded both the Benchmark and Proxy Benchmark on a one-year trailing basis [3] Annualized Performance - For the 1-year period ended June 30, 2025, the Fund's Institutional Shares returned 19.72%, compared to 17.72% for the MSCI ACWI ex USA Index [4] - Over the last 3 years, the Fund's Institutional Shares returned 10.34%, while the Benchmark returned 13.99% [4] Market Catalysts - The U.S. trade/tariff policy pivot and strong momentum towards a pro-growth tax reduction and fiscal spending bill were key drivers of global capital markets [5] - Despite tariff deferrals, there remains a risk of retaliation and a weaker U.S. dollar, which could shift capital flows towards non-dollar assets [5] Sector Performance - The Energy sector, particularly investments in Waga Energy SA, was the largest contributor to the Fund's relative performance [6] - Strong stock selection in Consumer Staples and Industrials sectors also contributed positively, while Health Care sector allocation detracted from performance [6] Country Contributions - Overweight positioning in Korea, particularly in shipbuilding, significantly contributed to relative performance [7] - Positive stock selection in France, India, and Israel also bolstered results, while China showed modest adverse stock selection effects [7] Top Contributors - HD Korea Shipbuilding & Offshore Engineering Co., Ltd. contributed 1.66% to returns, driven by improving profit margins and backlog growth [8] - Waga Energy SA and ODDITY Tech Ltd. also made significant contributions, with returns of 1.48% and 1.01% respectively [9] Top Detractors - Alibaba Group Holding Limited detracted 0.26% from performance due to results that fell short of investor expectations amid geopolitical uncertainty [12] - Full Truck Alliance Co. Ltd. and Argenx SE also detracted from performance due to revised earnings guidance and sales below expectations, respectively [13][14] Recent Activity - New investments were made in Centum Electronics Limited and XP Inc., focusing on global security and fintech disruption themes [22][24] - Increased exposure to existing positions, including AMG Critical Materials N.V. and SK hynix Inc., while exiting several positions to concentrate on higher conviction investments [26] Outlook - The Fund anticipates continued relative outperformance of non-U.S. equities, driven by changing U.S. priorities and fiscal expansion in the EU [30] - The focus remains on sectors and companies positioned to benefit from geopolitical shifts and technological advancements, particularly in Korea and India [32]

Core Insights - Affirm Holdings, Inc. is expanding its "buy now, pay later" (BNPL) offerings across various sectors, including retail, home services, and wellness, reflecting a commitment to consumer-friendly financing [1][9] - The company aims to capture a share of the projected $3.7 trillion U.S. health and wellness market by 2034 through enhanced mobile capabilities and integration with major platforms [2][8] Group 1: BNPL Expansion - Affirm has launched a feature allowing in-store purchases using Apple Pay, enabling U.S. consumers to utilize pay-over-time options at physical checkouts [2][3] - Eligible purchases can be split into biweekly or monthly payments starting at 0% APR, with no late or hidden fees, enhancing consumer flexibility [3][5] - The integration with Apple Pay is expected to bridge the gap between digital and physical retail, making BNPL more accessible for everyday purchases [4][9] Group 2: Partnerships and Industry Impact - Affirm has partnered with ServiceTitan to embed BNPL into the trades industry, allowing homeowners to manage average annual improvement costs of $8,800 through flexible payment plans [5][6] - The collaboration with Vagaro aims to bring flexible payments to beauty, wellness, and fitness businesses, enabling nearly 100,000 U.S. salons and spas to offer personalized payment plans [7][8] - These partnerships are designed to empower contractors and service providers by reducing upfront cost barriers, thereby enhancing customer satisfaction and loyalty [5][6][9]

Core Insights - JD Health is set to open its first self-operated medical beauty store in the Beijing Guomao business district in mid-October, with pre-sales already exceeding 1 million yuan within three days of launching a promotional campaign [2][3] Company Developments - JD Medical Beauty (Guomao Store) has initiated a promotional campaign offering a 300 yuan no-threshold opening gift voucher, which has attracted nearly 1,800 users in just three days [2] - The store's first week of service appointments is nearly fully booked, indicating strong demand [2] - JD Medical Beauty previously opened a medical beauty department at its Yizhuang Health Checkup Center in July, offering various services including skin whitening and laser hair removal [2] Industry Trends - JD is expanding into the medical beauty sector as part of its broader strategy to penetrate local lifestyle services, alongside food delivery and travel [3] - The medical beauty market in China is projected to reach nearly 300 billion yuan in 2024, with significant competition from platforms like Meituan, Taobao, and Douyin [3] - A report from Meituan indicated that nearly 3,000 new medical beauty institutions opened in the previous year, reflecting a 38.5% year-on-year growth [3] - Online channels are becoming increasingly popular for purchasing medical beauty services, with 73% of consumers using online platforms as their primary purchasing method [3]

Core Insights - ODDITY Tech Ltd. reported strong financial results for Q2 2025, exceeding guidance across revenue, profit, and earnings per share, indicating robust business growth and profitability [2][4][6] - The company is expanding into new markets, particularly in healthcare with the upcoming launch of Brand 3, which focuses on medical-grade products [3][4] - ODDITY raised its full-year financial outlook for 2025, reflecting confidence in continued growth driven by a backlog of repeat orders [4][9] Financial Performance - Q2 2025 net revenue reached $241 million, a 25% increase year-over-year from $193 million in Q2 2024 [4][6] - Adjusted EBITDA for Q2 2025 was $70 million, up 12% from $62 million in Q2 2024, with an adjusted EBITDA margin of 28.8% [4][6] - Net income for Q2 2025 was $49 million, compared to $45 million in Q2 2024, with a net income margin of 20.4% [4][6] Financial Outlook - The updated full-year 2025 outlook includes net revenue between $799 million and $804 million, representing year-over-year growth of 23% to 24% [9][10] - For Q3 2025, ODDITY expects net revenue between $144 million and $146 million, with a gross margin of approximately 68% [11][9] - Adjusted diluted EPS for the full year is projected to be between $2.06 and $2.09, an increase from the previous outlook [9][10] Strategic Initiatives - The company is progressing towards the formal launch of Brand 3 in Q4 2025 and Brand 4 in 2026, indicating a focus on innovation and market expansion [5][4] - ODDITY is also developing its ODDITY LABS molecule discovery platform, which may enhance its product offerings in the future [5][4] - The company completed its first exchangeable note offering, upsized to $600 million, strengthening its cash position [5][4]

Company Overview - ODDITY Tech Ltd. is a consumer tech company focused on building and scaling digital-first brands to disrupt the offline-dominated beauty and wellness industries [3] - The company serves approximately 60 million users through its AI-driven online platform, utilizing data science to identify consumer needs and develop beauty and wellness products [3] - ODDITY owns brands such as IL MAKIAGE and SpoiledChild, with headquarters in New York City, an R&D center in Tel Aviv, Israel, and a biotechnology lab in Boston [3] Financial Results Announcement - ODDITY will release its second quarter 2025 financial results after the market close on August 4, 2025 [1] - A conference call to discuss the financial results will take place on August 5, 2025, at 8:30 a.m. Eastern Time [1] Conference Call Details - Participants can join the conference call by dialing 1-800-717-1738 (US) or 1-646-307-1865 (international) [2] - A webcast of the call will be available on the Investors section of ODDITY's website, with a recording accessible shortly after the call [2]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 10.8% in Q1, with organic net sales declining by 17.3% excluding Olive and June [39][40] - Gross profit margin decreased by 160 basis points to 47.1%, primarily due to a shift towards lower price alternatives and elevated retail trade expenses [43] - GAAP operating loss for the quarter was $407 million, primarily due to noncash impairment charges [45] - Non-GAAP adjusted EPS was $0.41 compared to $0.99 in the same period last year [46] Business Line Data and Key Metrics Changes - Home and Outdoor segment net sales declined by 10.3%, with approximately 6.7 percentage points of the decline driven by tariff-related disruption [41] - Beauty and Wellness segment net sales declined by 11.3%, with approximately 9.7 percentage points of the decline driven by tariff-related disruption [42] - OXO brand gained share and extended its leadership in kitchen utensils, while Hydro Flask saw growth driven by expanded distribution [21][22] Market Data and Key Metrics Changes - U.S. point of sale unit growth was seen in eight out of eleven key brands in Q1 [19] - Average price compression of 3% to 4% was noted in the U.S. business, indicating a trend of consumers trading down [18] - Strong category growth was observed in prestige hair liquids, air purifiers, and thermometry, with DTC revenue growth of 9% year over year [20] Company Strategy and Development Direction - The company is focusing on five key priorities: restoring confidence, improving go-to-market effectiveness, refocusing on innovation, leveraging brand strengths, and reinvigorating company culture [11][12][15] - A strategic shift towards supply chain diversification and dual sourcing is being implemented to mitigate tariff impacts [35][53] - The company plans to implement average price increases across its portfolio in the range of 7% to 10% [60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q1 results were below expectations due to greater-than-expected tariff-related disruptions [17] - The macro environment remains uncertain with geopolitical friction and shifting consumer behavior impacting demand [16] - The company expects continued tariff-related disruptions into Q2 but believes these impacts are largely transitory [30] Other Important Information - The company ended Q1 with total debt of $871 million, a decrease of $46 million compared to the previous quarter [47] - Free cash flow for Q1 was strong at $45 million compared to $16 million in the same period last year [20] - The company is not providing a full-year outlook due to ongoing uncertainties related to tariffs and consumer demand [49] Q&A Session Summary Question: Pricing plans and elasticity considerations - The company plans to implement price increases of 7% to 10% across its portfolio, with individual items seeing increases up to 15% [60] - Conservative elasticity assumptions are being made due to the challenging environment [62] Question: Gross margins and SG&A interplay for Q2 - Gross margins are expected to be slightly worse than Q1, but year-over-year improvement is anticipated [66] - SG&A ratio is expected to normalize to approximately 37% to 38% for the remaining three quarters of the fiscal year [51] Question: Long-term earnings power and headwinds - The company acknowledges significant impacts from direct import business and tariff changes, affecting Q1 and Q2 results [75] - The cadence of results is expected to improve in the second half of the year due to pricing actions and stabilization of retail inventory [76] Question: Retail distribution gains and self-base consolidation - The company is expanding distribution in Walmart, particularly for blood pressure monitors, and expects benefits in the second half [93]