Core Viewpoint - e.l.f. Beauty has experienced a significant stock price increase following strong earnings results and the announcement of an acquisition, indicating positive market sentiment and growth potential for the company [1][11]. Financial Performance - e.l.f. reported a net sales growth of 28% for fiscal 2025 Q4, outperforming the consumer staples sector's growth of 4% and analysts' forecast of less than 2% [2]. - The adjusted diluted earnings per share (EPS) increased by 47% to $0.78, surpassing expectations of approximately 36% growth [3]. - The adjusted EBITDA margin nearly doubled from 12.7% in fiscal Q4 2024 to 24.5% in fiscal Q4 2025 [2]. Tariff Impact - The company highlighted significant exposure to tariff risks, particularly as 75% of its global production is sourced from China, which is currently subject to 55% tariffs [4]. - If tariffs remain at current levels, e.l.f. estimates an annual increase of $50 million in its cost of goods sold, which would reduce its adjusted gross margin from 71.2% to 67.4% [5]. - The company plans to increase prices across all products by $1 starting August 1 to mitigate tariff impacts [6]. Acquisition of Rhode - e.l.f. announced the acquisition of Rhode, a fast-growing beauty brand, for a total potential price of $1 billion, with $800 million paid upfront and $200 million contingent on growth targets [9]. - Rhode achieved $212 million in net sales over the last 12 months, contributing to e.l.f.'s growth strategy [7]. - The acquisition is expected to be moderately dilutive to existing shareholders, increasing the company's issued share count by approximately 4.7% and nearly tripling its total debt from $305 million [10]. Analyst Sentiment - Analysts at Bank of America have raised their price target for e.l.f. to $113, citing the positive contributions expected from the Rhode acquisition to e.l.f.'s gross margin, EBITDA margin, and earnings [11].

Investors with an interest in Cosmetics stocks have likely encountered both European Wax Center, Inc. (EWCZ) and e.l.f. Beauty (ELF) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies wi ...

Group 1 - elf Beauty Inc announced a $1 billion acquisition of Rhode, a skincare brand founded by Hailey Bieber, which is expected to enhance its skincare offerings and attract higher-income consumers [1] - The acquisition news coincided with a strong fiscal fourth-quarter earnings report, where elf Beauty reported adjusted earnings of 78 cents per share on $333 million in revenue, surpassing Wall Street expectations [1] - The company withheld full-year guidance due to uncertainties related to tariffs [1] Group 2 - Following the acquisition announcement, elf Beauty's stock surged 31.1% to $118.63, marking its highest level since January and reducing its year-to-date deficit to 6% [2] - The stock has experienced a nearly 90% increase in the past month and has reclaimed its 200-day moving average, which had been a resistance level since last August [2] Group 3 - At least four analysts raised their price targets for elf Beauty, with Canaccord Genuity increasing its target from $105 to $114, indicating potential for further upward revisions [3] - The average 12-month target for the stock is $99.22, suggesting a nearly 10% discount to current trading levels [3] Group 4 - Options activity for elf Beauty is significantly high, with over 25,000 calls and 21,000 puts exchanged, which is 13 times the average intraday volume [4] - New positions are being opened at nine of the ten most active contracts, led by the weekly 5/30 110-strike put [4]

Core Viewpoint - Elf Beauty is acquiring Hailey Bieber's makeup and skincare brand, Rhode, for approximately $1 billion, which includes $800 million in cash and stock, plus a potential earnout of $200 million based on performance [1][4][10]. Group 1: Acquisition Details - The acquisition marks Elf's largest deal to date, following its $355 million purchase of skincare company Natrium in 2023 [10]. - Hailey Bieber will remain as founder and serve as a strategic advisor post-acquisition, which is expected to close in the second quarter of fiscal 2026 [11][13]. - The deal allows Elf to enter the prestige beauty market, diversifying its portfolio amid weak demand from mass-market consumers due to high inflation [4][10]. Group 2: Market Position and Strategy - Rhode, launched in 2022, has gained popularity through viral products on TikTok, such as its $18 "peptide lip treatments," and sells exclusively through its website and pop-up stores [6]. - Elf Beauty, known for its low-priced products starting at $2, is facing challenges in the mass market and aims to expand its reach with the acquisition of Rhode [5][9]. - The deal is seen as a strategic move to tap into the strong Gen Z following of Rhode, which has maintained momentum in a slowing prestige beauty market [5][10]. Group 3: Financial Performance and Future Outlook - Elf reported approximately $212 million in sales for the year ending March 31 and plans to expand distribution by selling at Sephora stores in the US, Canada, and the UK [9]. - The company has refrained from providing a fiscal 2026 forecast due to uncertainties regarding import tariffs, despite exceeding Wall Street expectations for fourth-quarter sales [11][12].

Group 1: Earnings Performance - E.l.f. Beauty reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and up from $0.53 per share a year ago, representing an earnings surprise of 6.85% [1] - The company posted revenues of $332.65 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.92%, compared to year-ago revenues of $321.14 million [2] - Over the last four quarters, E.l.f. Beauty has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - E.l.f. Beauty shares have declined approximately 27% since the beginning of the year, while the S&P 500 has gained 0.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.95 on revenues of $353.22 million, and for the current fiscal year, it is $3.36 on revenues of $1.44 billion [7] - The estimate revisions trend for E.l.f. Beauty is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Cosmetics industry, to which E.l.f. Beauty belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [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]

e.l.f. Beauty (ELF) Q4 2025 Earnings Call May 28, 2025 04:30 PM ET Company Participants None - ExecutiveTarang Amin - Chairman and CEOMandy Fields - SVP & CFOOliver Chen - Managing Director - Retail, Luxury, New Platforms Sector HeadDara Mohsenian - Managing Director - US Beverage/Household Products SectorsJonna Kim - DirectorSydney Wagner - Equity Research Senior Associate - Beauty & Personal CareBonnie Herzog - Managing Director Conference Call Participants Susan Anderson - Managing Director & Senior Ana ...

e.l.f. Beauty (ELF) Q4 2025 Earnings Call May 28, 2025 04:30 PM ET Company Participants None - ExecutiveTarang Amin - Chairman and CEOMandy Fields - SVP & CFOOliver Chen - Managing Director - Retail, Luxury, New Platforms Sector HeadDara Mohsenian - Managing Director - US Beverage/Household Products SectorsJonna Kim - DirectorSydney Wagner - Equity Research Senior Associate - Beauty & Personal CareBonnie Herzog - Managing Director Conference Call Participants Susan Anderson - Managing Director & Senior Ana ...

Financial Data and Key Metrics Changes - In fiscal 2025, the company achieved a net sales growth of 28% and adjusted EBITDA growth of 26% [2][35] - Q4 net sales grew 4% year over year, following a 71% growth in Q4 of the previous year [32] - Adjusted net income for Q4 was $45 million, or $0.78 per diluted share, compared to $31 million, or $0.53 per diluted share a year ago [34] Business Line Data and Key Metrics Changes - The company is the number one brand in the U.S. by unit share in cosmetics and has seen significant growth in skincare with e.l.f. Skin and Naturium [9][46] - International net sales grew 60% in fiscal 2025, with total international sales reaching $250 million, representing nearly 20% of total sales [15][36] - The company expanded its market share in the U.S. mass cosmetics and skincare sectors, achieving new highs [35] Market Data and Key Metrics Changes - The company gained 190 basis points of market share in the U.S. and 270 basis points in the UK during fiscal 2025 [2][35] - In Q4, U.S. net sales grew 1% year over year, while international sales grew 19% [32][33] - The company’s household penetration in the U.S. grew almost 400 basis points compared to the previous year [6] Company Strategy and Development Direction - The company plans to mitigate tariff impacts through pricing adjustments, supply chain optimization, and business diversification [12][14] - The acquisition of Rhode is seen as a unique opportunity to enhance growth and innovation in the beauty industry [47][61] - The company aims to maintain a strong focus on share gains in the U.S. and expanding its international business [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to continue gaining market share despite tariff uncertainties [30][66] - The company is not providing a fiscal 2026 outlook due to the broad range of potential tariff outcomes [11][38] - Management noted that consumption trends in Q1 are better than in Q4, with positive growth in various channels [39][66] Other Important Information - The company ended fiscal 2025 with $149 million in cash, up from $108 million the previous year, and generated approximately $115 million in free cash flow [37] - The company plans to implement a $1 price increase across its entire product assortment globally, effective August 1 [12][100] - The company’s marketing and digital investment for Q4 was 23% of net sales, down from 34% the previous year [34] Q&A Session Summary Question: Can you provide insights on Q1 performance and Dollar General? - Management indicated that Q1 performance is strong, with Dollar General exceeding expectations and gaining market share [68] Question: Can you elaborate on the Road acquisition and its integration? - The Road brand will continue to operate independently from Los Angeles, with plans for global expansion and a focus on the Sephora rollout [70][72] Question: What are the expected impacts of tariffs in Q1? - Management confirmed that tariff impacts will start in Q1, with no pricing adjustments in effect during that period [94] Question: How will the pricing increase affect sales? - The company anticipates a positive community response to the $1 price increase, with expectations of maintaining market share [102] Question: What are the growth opportunities for Road? - The Road brand has significant growth potential, with plans to expand its product assortment and leverage e.l.f.'s marketing capabilities [110]

"I'm a long-time fan of Burt's Bees lip balms and so this collaboration with such an iconic brand is very cool for us," said Mike Kurtz, Founder of Mike's Hot Honey. "This partnership to bring our sweet-heat flavor to life in a lip balm is an exciting, unexpected way for fans to experience the flavor they love — this time beyond the kitchen." The collab brings together two beloved brands at the start of summer, when bees are buzzing, grills are sizzling and we're all getting out there – and a little sweet h ...

Canaccord Genuity analyst Susan Anderson reiterated the Buy rating on e.l.f. Beauty ELF with a price forecast of $105.On May 23, the firm disclosed via social media its plan to increase prices by $1 starting August 1, attributing the decision to the current tariff environment.According to Anderson, this development should be viewed positively, as it suggests the company’s tariff impact is ‘manageable’ using its existing strategy while continuing to provide affordable, high-quality products.Also Read: ‘Big S ...