Recurring theme from retailers that have reported thus far. Some have raised prices because of it, including ELF last week. The National Retail Federation warning last week that the direct result of tariffs will be higher prices and fewer capital expenditures.But my next guest is staying positive into earnings. Joining me now is Chris Horver, retail analyst at JP Morgan. Chris, it's great to have you on the show.And let's start right there. What what is sparking the positivity. Well, it's a little bit of wh ...

elf Beauty Gains as Morgan Stanley Upgrades on Low Estimates. Hear about the day's winners and losers on Wall Street with the Bloomberg Stock Movers report https://t.co/kfMuqyEq9e ...

Core Viewpoint - The article emphasizes the potential investment opportunity in e.l.f. Beauty (NYSE: ELF), highlighting its status as a premium fast-growing company and suggesting that current market conditions present an excellent buying opportunity [1]. Investment Strategy - The investment approach is value-oriented, focusing on acquiring growth stocks that are reasonably valued, aligning with the philosophy of buying wonderful companies at fair prices [1]. - The portfolio is concentrated in 12 to 15 stocks, allowing for in-depth knowledge and strategic trading based on market conditions [1]. Portfolio Performance - The portfolio has shown significant returns over the years, with a total return of 4,114% since inception in 2016, and an internal rate of return (IRR) of 51.54% per year [1]. - Yearly performance highlights include: - 2016: 1.28% return vs. NASDAQ 7.50% - 2017: 49.40% return vs. NASDAQ 28.23% - 2018: 84.91% return vs. NASDAQ -3.88% - 2019: -1.08% return vs. NASDAQ 35.23% - 2020: 173.62% return vs. NASDAQ 43.63% - 2021: 37.84% return vs. NASDAQ 21.40% - 2022: 20.93% return vs. NASDAQ -33.10% - 2023: 87.60% return vs. NASDAQ 43.42% - 2024: 77.98% return vs. NASDAQ 29.83% [1].

Group 1 - e.l.f. Beauty's Q1 FY 2026 quarterly results led to a sharp decline in stock price post-market, indicating market concerns over slowing core growth and margin pressures [1] - The company has withdrawn its full-year guidance, which has further contributed to investor anxiety regarding decreasing profits [1] Group 2 - Analysts are focusing on the implications of the company's performance on the broader beauty industry, particularly in terms of growth trends and competitive positioning [1]

Company Overview & Strategy - E l f Beauty initially sold affordable makeup products online and grew into a multi-million dollar company, partnering with retailers like Target [6] - The company's strategy is fueled by marketing and offering dupes of popular prestige products at bargain prices [8] - E l f adapts and creates new products based on customer feedback monitored on social media [12][13] - The company shifted production away from China to diversify its supply chain, moving from 100% to 75% sourced from China [15] Financial Performance & Market Position - E l f posted its first billion-dollar year in May 2024 after sales spiked 77% [3] - In fiscal year 2025, net sales grew by 28% to $13 billion, with international sales also growing by 28% [21] - E l f was the number one color cosmetics brand by units sold and number two by dollar share in 2024 [21] Acquisition & Expansion - E l f acquired Hailey Bieber's skincare brand Rhode in a $1 billion deal [2][23] - Rhode grew to $212 million in net sales in three years and more than doubled its customer base in fiscal year 2025 [24] - The Rhode deal was financed with $600 million of debt [26] Challenges & Risks - Heavy reliance on China caused profits to drop 30% in Q1 2026 [4] - Tariffs are expected to increase the cost of goods sold by at least $50 million annually, potentially causing net income and profits to each fall 30% [28]

Core Viewpoint - United-Guardian, Inc. reported a decline in net sales and net income for the second quarter and first half of 2025 compared to the same periods in 2024, although there was a sequential increase from the first quarter of 2025 [1][2]. Financial Performance - Second quarter net sales decreased from $3,390,205 in 2024 to $2,838,225 in 2025, a decline of approximately 16.3% - Net income for the second quarter fell from $956,225 ($0.21 per share) in 2024 to $626,826 ($0.14 per share) in 2025, a decrease of about 34.4% - For the six-month period ended June 30, net sales decreased from $6,645,149 in 2024 to $5,319,352 in 2025, a decline of approximately 20% - Net income for the six-month period decreased from $1,881,667 ($0.41 per share) in 2024 to $1,187,721 ($0.26 per share) in 2025, a decrease of about 37% [1][5][6]. Segment Performance - Sales of pharmaceuticals and medical lubricants increased by 11% and 12%, respectively, in the first half of 2025 compared to the same period in 2024 - The increase in these segments was offset by a decrease in sales of cosmetic ingredients, primarily due to reduced purchases by Ashland Specialty Ingredients (ASI), the largest cosmetic distributor - The decline in ASI's purchases was attributed to softer demand in Asia, leading to an inventory overstock situation [2][3]. Future Outlook - The company is optimistic about improving cosmetic sales in the second half of the year as ASI resolves its overstock situation - A new project is being initiated to include Renacidin, a key pharmaceutical product, in additional drug formularies, which could significantly boost sales in the coming years [2][3].

Core Viewpoint - The beauty industry is experiencing a shift where traditional giants are being challenged by agile "white label" players, particularly in niche segments that have been overlooked by major brands, leading to significant growth in these areas [3][4]. Market Trends - The online beauty market has seen multiple niche categories with transaction growth rates exceeding 50% in the first half of the year, driven primarily by white label brands rather than mainstream giants [7][8]. - Eight beauty subcategories have shown remarkable growth, including body makeup, men's hair care, and foot care, with white label brands playing a crucial role in this expansion [7][8]. Performance Data - Specific high-growth categories include: - Body makeup: 0.36 billion, up 767.92% - Men's hair care: 5.12 billion, up 131.50% - Foot care: 8.04 billion, up 102.48% - Neck care: 7.60 billion, up 73.51% - T-zone care: 8.46 billion, up 69.00% - Men's makeup: 2.00 billion, up 53.57% [8][11]. Competitive Landscape - White label brands have a significant presence in the top 10 rankings of various high-growth categories, particularly in neck care and foot care, indicating their ability to capture market share in less saturated segments [11][12][15]. - The neck care market, for instance, has seen a 73.51% year-on-year growth, with approximately 70% of the top brands being white labels [11][18]. Consumer Insights - The rise of white label brands in niche markets suggests a deeper understanding of consumer needs and a successful strategy to address previously unmet demands [29][32]. - The marketing strategies employed by these brands often focus on "appearance anxiety" and emphasize product efficacy, resonating well with consumers [24][27]. Strategic Implications - The success of white label brands highlights the potential for innovation in product forms and marketing strategies to activate consumer demand in niche segments [29][30]. - Companies in the beauty industry should consider agile responses to market changes and leverage emerging platforms like Douyin for targeted marketing [31][32].

Financial Performance & Challenges - ELF Beauty's stock experienced a nearly 10% decrease despite delivering a top and bottom-line beat [1][2] - Management declined to issue a full-year forecast due to tariff uncertainties, suggesting potential margin pressure [2] - The company has increased prices by approximately $1 due to tariffs and other cost pressures [5] Market Share & Growth Strategy - ELF Beauty achieved its 26th consecutive quarter of net sales and market share gains in the US cosmetics market [4] - The company is focused on growing market share and pursuing white space opportunities [5] - ELF Beauty is the number one brand amongst Gen Z and is gaining consumers across all age brackets [18] Expansion & Partnerships - Road is joining the ELF Beauty family and will be available in all US and Canadian Sephora stores in September, followed by the UK later this year [8] - ELF Beauty is expanding its partnership with Sephora by introducing ELF in six Gulf cooperation countries and launching a brand experience in Sephora Australia [9] - ELF Beauty is launching in Dollar General, serving an underserved market, with 60% of ELF purchasers being new to cosmetics purchases at Dollar General and 53% being new to ELF [12] Supply Chain & Cost Management - ELF Beauty has been optimizing its supply chain, reducing its production in China from 100% to approximately 75% [15] - The diversification of the supply chain is driven by strong global demand rather than solely by tariffs [15] Competitive Advantage - ELF Beauty aims to make the best of beauty accessible for every eye, lip, and face [17] - ELF Beauty offers superior value, with 75% of its portfolio priced at $10 or less even after the price increase [6][7] - ELF Beauty's vitamin E, C, and ferulic serum is priced at $16, significantly lower than a comparable prestige item at $185 [19]

Core Insights - e.l.f. Beauty, Inc. reported better-than-expected first-quarter results, with earnings of 89 cents per share, surpassing the Street estimate of 84 cents, and quarterly revenue of $353.73 million, exceeding the analyst consensus of $349.43 million, and up from $324.47 million in the same period last year [1][2]. Financial Performance - Quarterly earnings were 89 cents per share, beating the estimate of 84 cents [1]. - Revenue for the quarter was $353.73 million, exceeding the consensus estimate of $349.43 million and up from $324.47 million year-over-year [1]. Market Position - The company gained 210 basis points in market share during the first quarter, continuing a trend of consistent growth over the past 26 quarters [2]. - The CEO highlighted the combination of value proposition, innovation, and marketing as key drivers of the company's performance [2]. Stock Performance - Following the earnings announcement, e.l.f. Beauty shares dipped 9.5% to $99.94 [2]. Analyst Ratings and Price Targets - Morgan Stanley maintained an Equal-Weight rating and raised the price target from $105 to $114 [8]. - Goldman Sachs maintained a Buy rating and increased the price target from $120 to $137 [8]. - UBS maintained a Neutral rating but lowered the price target from $120 to $112 [8].

Industry Overview - Neck cream is a skincare product specifically designed for neck care, aiming to nourish, moisturize, and firm the skin, thereby improving its condition and delaying aging signs [2][3] - The neck cream market in China is projected to reach a retail value of 435.7 billion yuan by 2024 [3] Industry Chain - The upstream consists of raw material suppliers, including moisturizing agents, emulsifiers, thickeners, and functional ingredients like hyaluronic acid and peptides. Domestic companies like Huaxi Biological and Zhejiang Peptide Bio are notable suppliers [4] - The midstream includes manufacturers, with international brands like Clarins and Sisley dominating the high-end market, while domestic brands focus on cost-effectiveness and local innovation [4] - The downstream involves sales channels, both online and offline, with social media platforms enhancing product visibility and consumer engagement [5] Current Market Status - The neck cream market is experiencing growth as traditional facial skincare markets slow down, with a market size expected to reach approximately 2.091 billion yuan by 2024 [6][8] - The market has seen a compound annual growth rate (CAGR) of 14.84% from 2019 to 2024, with projections to continue growing at a CAGR of 8.97% from 2025 to 2029 [8] Development Trends - Future trends indicate a move towards customized products targeting different age groups and skin types, alongside the integration of online and offline sales strategies [9] - There is an increasing focus on male skincare, with products designed for male-specific skin characteristics expected to emerge [9]