Core Insights - e.l.f. Beauty reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, but down from $0.77 per share a year ago, resulting in an earnings surprise of +19.30% [1] - The company posted revenues of $343.94 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 6.17%, compared to $301.08 million in the same quarter last year [2] - e.l.f. Beauty shares have declined approximately 5.8% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $474.31 million, and for the current fiscal year, it is $3.52 on revenues of $1.65 billion [7] - The estimate revisions trend for e.l.f. Beauty was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Cosmetics industry is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - E.l.f. Beauty believes that consumers will maintain their self-care routines during uncertain economic times, potentially even increasing their spending on affordable beauty products [1][6] - The company's stock fell sharply after reporting lower-than-expected full-year revenue guidance, despite a year-over-year sales increase [6][7] Financial Performance - E.l.f. Beauty reported a 14% increase in sales year-over-year, reaching $344 million, up from $301 million [7] - Adjusted net income for the quarter was $40 million, or 68 cents per share, compared to $45 million, or 77 cents per share, a year earlier [7] - The company forecasts full-year fiscal 2026 revenue between $1.55 billion and $1.57 billion, indicating an 18% to 20% year-over-year increase, but this is below Wall Street expectations [7] Market Positioning - E.l.f. Beauty positions itself as a value brand, with 75% of its products priced under $10, appealing to consumers seeking affordable indulgences during tight budget periods [4][6] - The company offers a range of brands at different price points, including its flagship e.l.f. Cosmetics and higher-priced brands like Keys Soulcare and Rhode [4][6] Consumer Behavior - The "lipstick effect" suggests that consumers may seek small luxuries during stressful times, which could benefit E.l.f. Beauty due to its low-priced offerings [3][4] - CFO Mandy Fields noted that consumers are being "choiceful" with their spending, indicating a trend towards affordable self-care products [4][6]

Financial Data and Key Metrics Changes - In Q1, total net revenues declined 8% like-for-like, in line with expectations and guidance [4] - Adjusted EBITDA declined 18% in Q1, primarily due to lower sales and gross margin, partially offset by lower fixed costs [14] - Q1 adjusted gross margin was 64.5%, a decline of 100 basis points compared to the prior year [14] - Free cash flow in Q1 was $11 million, an improvement of $19 million versus last year [15] Business Line Data and Key Metrics Changes - In the prestige division, sales declined by 6% like-for-like in Q1, improving from a 7% decline in Q4 [5] - Consumer beauty saw like-for-like sales decline of 11% in Q1, with expectations for further improvement in Q2 [6] - The fragrance portfolio continues to be a key driver, with fragrance volumes up low single digits in Q1 [6] Market Data and Key Metrics Changes - The prestige beauty market grew 6% in Q1, while Coty's prestige sell-out grew 1% [7] - The mass beauty market grew 2% in Q1, but Coty's sell-out declined 6% [8] - In China, Coty's Q1 sell-out grew 15%, significantly outpacing the market [42] Company Strategy and Development Direction - The company aims to solidify its position as a global prestige beauty company with a focus on fragrance and scenting [4] - A strategic review is underway to transform the consumer beauty business while improving profitability and balance sheet [3] - The company is targeting significant fixed cost savings across the organization, with a goal of approximately $200 million in fiscal 2026 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in building momentum through fiscal year 2026, despite ongoing challenges [5] - The company anticipates a return to profitable sales growth in the second half of fiscal 2026, supported by new launches and alignment between sell-in and sell-out [18] - Management noted that the broader beauty market is moderating, but fragrances continue to outperform [6] Other Important Information - The company generated over $40 million in productivity savings in Q1 [11] - Recent tariff updates are expected to have a gross impact of under $50 million for the year, which is $20 million lower than previous assumptions [12] - The company is actively pursuing the monetization of VEGA to support deleveraging efforts [16] Q&A Session Summary Question: What are the expectations for sales trends in Q2? - The company expects Q2 like-for-like sales to land at the more favorable end of the prior guidance of -3% to -5% [18] Question: How is the company addressing challenges in the U.S. market? - Management highlighted new leadership and structural changes aimed at closing the gap between sell-out and sell-in in the U.S. market [9] Question: What is the outlook for EBITDA in the second half? - Positive EBITDA is expected in the second half, supported by a return to sales growth and fixed cost savings initiatives [20]

Core Insights - Elf Beauty forecasted annual sales and profit below Wall Street estimates due to higher tariff costs and cautious consumer spending, resulting in a 26% drop in shares during extended trading [1] - The company missed expectations for second quarter sales and provided a fiscal 2026 forecast after previously pulling it in May [1] Financial Performance - Elf Beauty expects over $50 million in annual costs from higher U.S. tariffs on imports in fiscal 2026, with China accounting for about 75% of its global production [2] - Gross margin fell approximately 165 basis points to 69% for the quarter ended September 30 [2] - Quarterly adjusted earnings per share were 68 cents, exceeding estimates of 57 cents, following a $1 price increase in August, with no additional price increases planned [3] - Quarterly sales totaled $343.9 million, missing expectations of $366.4 million [4] Market Position and Strategy - The company is streamlining its supply chain and diversifying operations to mitigate tariff impacts, as lower-income shoppers are seeking cheaper alternatives and reducing non-essential purchases [3] - CEO Tarang Amin noted a lack of major product launches compared to the previous year, which had significant success with lip oils [5] Future Outlook - Full-year net sales are expected to be between $1.55 billion and $1.57 billion, below analysts' estimates of $1.65 billion [6] - Adjusted profit is estimated to be in the range of $2.80 to $2.85 per share, also below estimates of $3.58 per share [6]

Core Insights - e.l.f. Beauty reported second-quarter net sales of $343.9 million, a 14% increase year-over-year, but missed the Street consensus estimate of $366.43 million [2] - Adjusted earnings per share were 68 cents, surpassing the Street consensus estimate of 57 cents per share [3] - The company ended the quarter with $194.4 million in cash and cash equivalents and $831.6 million in long-term debt [3] Sales and Market Performance - The sales growth was attributed to both retailer and e-commerce channels, as well as contributions from U.S. and international markets [2] - The e.l.f. brand gained 140 basis points in market share, and the launch of rhode in Sephora North America was highlighted as a record-breaking event [4] Future Guidance - For fiscal year 2026, the company is guiding earnings per share in the range of $2.80 to $2.85, significantly lower than the Street consensus estimate of $3.58 [5] - Full fiscal year net sales guidance is set between $1.55 billion and $1.57 billion, below the Street consensus estimate of $1.669 billion [5] Stock Performance - Following the earnings report and guidance, e.l.f. Beauty shares fell 18.53% to $117.83 in after-hours trading, with a 52-week trading range of $49.40 to $150.99 [6]

Core Insights - ELF Beauty reported earnings that exceeded expectations, but revenue of $344 million fell short by $22 million compared to estimates, indicating a significant decline in performance [1] - Shares of ELF Beauty are currently down 16% following the earnings report, reflecting investor concerns over the revenue miss [1] - The company's guidance for both earnings and revenue is below current consensus estimates, suggesting potential challenges ahead [1] - ELF Beauty noted a decrease in gross margins by 165 basis points, attributed to increased tariffs impacting costs [1]

Core Insights - E.l.f. Beauty's acquisition of Rhode is projected to significantly boost annual sales by $200 million in the current fiscal year, highlighting Rhode as a key growth driver for E.l.f. [1][2] - The acquisition, finalized for $1 billion, is expected to generate $300 million in revenue annually after Rhode's launch in Sephora stores, marking the largest brand launch in Sephora's North American history [2][3] Financial Performance - E.l.f. reported a net income of $3 million (5 cents per share) for the quarter ending September 30, a decline from $19 million (33 cents per share) a year earlier, despite strong sales from Rhode and other channels [4] - Total sales increased to $344 million, reflecting a 14% rise from $301 million the previous year, although the company missed revenue estimates [4][9] - The company's gross margin fell by 1.65 percentage points due to increased tariff costs, leading to an 84% drop in net income [5][6] Future Outlook - E.l.f. anticipates full-year revenue between $1.55 billion and $1.57 billion, indicating an 18% to 20% growth, but below the $1.65 billion expected by analysts [7][8] - Rhode's contribution to sales is estimated to account for approximately 13% of the projected revenue, underscoring the strategic importance of the acquisition [8] - Adjusted earnings per share are expected to be between $2.80 and $2.85, significantly lower than the $3.58 forecasted by analysts [8]

Group 1 - E.l.f. Beauty forecasts net sales for fiscal 2026 to be between $1.55 billion and $1.57 billion, an increase from $1.31 billion in 2025 [1] - The company expects adjusted net income to be in the range of $165 million to $168 million, down from $198 million [2] - In Q2, net sales rose 14% to $343.9 million, although this was below Wall Street's forecast of $366 million [2] Group 2 - E.l.f. gained 140 basis points of market share for its namesake brand and had a record launch of Rhode in Sephora North America [3] - The launch of Rhode was the largest in Sephora North America's history, being two-and-a-half times larger than the second-largest launch [4] - The company refrained from providing a full-year 2026 estimate earlier due to uncertainties related to tariffs [4] Group 3 - The average tariff rate for the current year is 56%, compared to 25% last year, impacting the company's guidance [5] - E.l.f. has a strong balance sheet post-Rhode acquisition, allowing for potential future acquisitions if they meet high criteria [6] - The primary focus remains on strong organic growth, with significant opportunities across the brand portfolio [6]

Core Insights - Nu Skin Enterprises, Inc. is expected to report a decline in revenue for the third quarter of 2025, with the Zacks Consensus Estimate at $374.2 million, reflecting a 13% decrease from the previous year [1] - Earnings per share are projected to remain unchanged at 30 cents, indicating a significant increase of 76.5% compared to the same quarter last year [1] Revenue Challenges - The company is facing ongoing revenue pressure due to macroeconomic and operational challenges, particularly in mature markets such as North America, China, and parts of Southeast Asia, where consumer sentiment is weak [2][10] - A decline in affiliate and customer counts has further limited sales momentum [2] Operational Efficiency - Despite revenue challenges, Nu Skin's earnings are anticipated to benefit from improved operational efficiency and cost management initiatives under Project Accelerate [3] - The company is achieving structural savings through portfolio optimization, selling-expense realignment, and transitioning to shared service and digital infrastructure models [3] Margin Improvement - Consistent margin improvement has allowed the company to maintain profitability despite declining sales volumes [4] - Favorable shifts in the product mix and prudent expense control are expected to support earnings in the third quarter [4][5] Future Outlook - While revenue pressures are likely to persist, the company's enhanced cost structure and operational optimization initiatives are expected to support earnings growth and lay the groundwork for a gradual recovery [5]

Core Viewpoint - The Lauder family is planning to sell over $1 billion worth of Estée Lauder Cos. stock to settle estate obligations following the death of Leonard A. Lauder [1][2]. Group 1: Stock Offering Details - Trusts affiliated with Leonard A. Lauder's descendants are proposing to sell 11,301,323 shares of Class A common stock through a registered public offering [1]. - J.P. Morgan Securities is acting as the sole underwriter for the offering [2]. - The proceeds from the offering will go entirely to the selling stockholders, not to Estée Lauder Cos., and will be used to settle estate obligations, including taxes and debts [2]. Group 2: Ownership and Influence - After the completion of the offering, the Lauder family will beneficially own 82 percent of the outstanding voting power of the company's common stock [3]. - Leonard A. Lauder, who passed away at age 92, was a significant figure in establishing Estée Lauder Cos. as a leader in the prestige beauty industry [3][4]. - Several family members, including William P. Lauder and Jane Lauder, are on the board of the company but are not involved in daily operations [4].