French limited company (Société anonyme) with registered capital of 106,756,604.80 eurosRegistered office: 14, rue Royale, 75008 Paris632 012 100 R.C.S. ParisLegal Entity Identifier: 529900JI1GG6F7RKVI53 Disclosure of total number of voting rights and number of sharesin the capital at November 30, 2025 Pursuant to article L-233-8 II of the French “Code de Commerce” and 223-16 of the AMF's General Regulations: Total number of shares533,783,028Number of real voting rights (excluding treasury shares)533,783,02 ...

Key Takeaways ELF is gaining share with affordable pricing, rapid innovation and a digitally native marketing model.EL is working to stabilize sales and rebuild margins through its Beauty Reimagined transformation plan.ELF reflects high-growth execution and EL diversified scale and recovery potential.e.l.f. Beauty, Inc. (ELF) and The Estee Lauder Companies Inc. (EL) are two influential players in global beauty, operating at different ends of the market while competing across several overlapping categories. ...

Key Takeaways ELF delivered 14% y/y net sales growth in 2Q26 despite significant tariff headwinds.ELF raised prices by $1 across its portfolio, with about 75% of products still under $10.ELF expects the gross margin to improve later in fiscal 2026 from pricing and product mix.Pricing discipline is emerging as a critical lever in e.l.f. Beauty Inc.’s (ELF) strategy to navigate elevated tariff pressures through fiscal 2026, allowing the company to protect margins while sustaining consumer demand in a value-co ...

Core Viewpoint - Lin Qingxuan has updated its IPO prospectus, including a name change from "Shanghai Lin Qingxuan Biotechnology Co., Ltd." to "Shanghai Lin Qingxuan Cosmetics Group Co., Ltd." This change has sparked discussions among investors regarding the strategic implications of moving from a biotechnology focus to a cosmetics brand, especially as the company approaches its IPO [1][2][3]. Financial Performance - Lin Qingxuan's revenue is projected to grow from approximately 6.91 billion yuan in 2022 to 12.1 billion yuan in 2024, indicating a steady upward trend [7]. - In the first half of this year, Lin Qingxuan reported revenue of about 10.52 billion yuan, a significant increase of 98.49% compared to the same period last year [8]. - The company's gross profit margins are notably high, with figures of 78.0%, 81.2%, 82.5%, and 82.4% for the years 2022 to 2024, outperforming major competitors [9]. Research and Development - Despite the high gross margins, Lin Qingxuan's R&D expenses have been relatively low, with rates of 3.06%, 2.45%, 2.51%, and 1.71% from 2022 to 2024, indicating a declining trend [10]. - The company has managed to maintain its high-end product sales without significant R&D investment, suggesting a potential reliance on marketing rather than innovation [11][19]. Marketing Strategy - Lin Qingxuan's marketing and distribution expenses have been substantial, with figures of 5.09 billion yuan, 4.86 billion yuan, and 6.88 billion yuan from 2022 to 2024, constituting a significant portion of total revenue [16]. - The marketing expenses have been approximately 9 to 20 times higher than R&D expenditures, highlighting a strategy focused on brand marketing over product development [16][18]. Market Position and Risks - The company has a heavy reliance on its core product, camellia oil, which accounted for 45.5% of revenue in the first half of this year, raising concerns about market risk due to limited product diversification [18]. - Recent investor behavior indicates a lack of confidence in Lin Qingxuan's IPO prospects, with early investors exiting before the IPO submission [21]. Future Outlook - Lin Qingxuan plans to expand its product line beyond camellia oil and implement a multi-brand strategy to enhance its market position [24]. - The company has maintained a growing number of physical stores, increasing from 366 to 554 over the past three years, which may provide a buffer against market fluctuations [26].

Core Insights - L'Oréal has acquired an additional 10 percent stake in Galderma Group AG, increasing its total ownership to 20 percent, emphasizing its commitment to the aesthetics sector [1][2] - The acquisition was made from a consortium led by EQT and is expected to close by the first quarter of 2026 [3] - L'Oréal plans to support Galderma's strategy and independence while exploring synergies between injectable and topical dermatological treatments [4][5] Transaction Details - The transaction will be executed through an off-market block trade, dissolving the previous shareholder agreement with Sunshine SwissCo GmbH [3] - Funding for the acquisition will come from L'Oréal's available cash and credit lines [3] Strategic Intent - L'Oréal views aesthetics as a key area adjacent to its core beauty business and aims to solidify its partnership with Galderma, which has been successful since the initial investment in 2024 [2][4] - The partnership will leverage Galderma's expertise in dermatological solutions and L'Oréal's knowledge in skin biology and diagnostic tools [5] Governance Changes - Following the increased stake, Galderma's board will consider appointing two non-independent board candidates from L'Oréal, replacing the EQT-led consortium starting from the 2026 annual general meeting [6]

L'Oréal USA Overview - L'Oréal USA is the 1 beauty manufacturer in the U S [8, 23] - L'Oréal USA represents 27% of subsidiary sales in the North America zone [9] - Over 75% of L'Oréal USA's units are produced in North America [10] - L'Oréal USA has experienced 7X growth since 1995 [15] Market Position and Growth - L'Oréal has a 16% share of market (SOM) in the total beauty market, which is more than 2X larger than the 2 competitor [24] - The U S is the 1 beauty market in size and growth worldwide, accounting for 27% of the global market with a +5% change [38, 39] - L'Oréal is accelerating faster than the market, gaining major momentum with a +5% increase in Q3 [50, 52] Category Performance - L'Oréal's haircare is growing 3X the market rate [56] - In makeup, all of L'Oréal's CPD brands are outperforming the market year-to-date [64] - L'Oréal has a 34% share of market in mass makeup [73] Channel Strategy - E-commerce accounts for 26% of L'Oréal's business and is accelerating at +2X the market rate year-to-date [92] - B&M (Brick and Mortar) remains a priority, representing 65% of the total market [98]

Core Insights - e.l.f. Beauty, Inc. (ELF) experienced solid top-line growth in Q2 of fiscal 2026, with net sales increasing by 14% due to market share gains, despite profitability pressures from tariffs [1][3][4] - Gross margin contracted by approximately 165 basis points to 69%, primarily due to higher tariff expenses, although pricing and product mix provided some compensation [1][9] - Operating income decreased significantly to about $7.7 million from $27.9 million year-over-year, indicating a substantial contraction in operating margin [2][9] Financial Performance - Adjusted EBITDA for e.l.f. Beauty totaled roughly $66 million, representing 19% of sales, down from the previous year's level, highlighting the impact of tariffs and increased expenses on profitability [2][9] - The company implemented a global $1 price hike on August 1, yet 75% of its product portfolio remains priced at $10 or less, maintaining its value positioning [3][4] Tariff Impact and Future Outlook - Easing tariff comparisons later in the fiscal year are expected to provide margin relief, as e.l.f. Beauty anticipates a lower average tariff rate moving into the next year [4][9] - Despite current profitability challenges due to tariffs, strong demand and effective pricing strategies position e.l.f. Beauty for potential margin recovery in the future [4] Industry Comparison - Coty Inc. reported a 100-basis-point decrease in adjusted gross margin to 64.5%, with tariffs being a significant factor affecting profitability [5] - The Estee Lauder Companies Inc. saw a gross margin expansion of 60 basis points to 73.3%, but also expects tariff-related challenges amounting to approximately $100 million for the fiscal year [6] Stock Performance and Valuation - e.l.f. Beauty's stock price has declined by 38.9% year-to-date, contrasting with the industry's decline of 1.1% [7] - The company trades at a forward price-to-earnings ratio of 32.48, which is higher than the industry average of 26.4 [10] - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 13.6% for fiscal 2026, with a projected growth of 27.3% for fiscal 2027 [13]

Estée Lauder Companies Conference Summary Company Overview - **Company**: Estée Lauder Companies (NYSE: EL) - **Event**: 2025 Conference held on December 02, 2025 - **Speakers**: CEO Stéphane de La Faverie and Chief Digital and Marketing Officer Aude Gandon Key Points Beauty Reimagined Program - The company is a year into the "Beauty Reimagined" program, focusing on five pillars: consumer coverage, accelerating innovation, and increased investment in consumer-facing initiatives [3][4] - Progress has been made in consumer coverage, with expansion into platforms like Amazon, Shopee, and TikTok Shop, reconnecting with lapsed consumers and attracting new ones [4] - Innovation is accelerating, with notable product launches like Double Wear Concealer and The Ordinary, which has seen consistent double-digit growth [5][6] Financial and Operational Performance - The company has maintained and even grown market share in the U.S. and China, with a focus on innovation and consumer engagement [5][39] - The company is in the process of reducing workforce by 5,800-7,000 positions as part of its Profit Recovery and Growth Plan (PRGP) [8] - A cultural shift is underway, with a focus on agility and accountability within the organization [19][26] Digital and Marketing Strategy - Aude Gandon emphasizes the importance of media investment rebalancing towards brand building and awareness, moving away from a solely performance-driven approach [13][15] - Personalization is a key focus, leveraging data and AI to enhance consumer engagement and marketing effectiveness [17][18] - The company is actively engaging in social selling through platforms like TikTok Shop, recognizing the need for shoppable content [27][29] Market Insights - In the U.S., the company is regaining market share after years of decline, with a focus on price-sensitive consumers and leveraging brands like The Ordinary and Clinique [39][40] - In China, the market is stabilizing after a period of depressed sales, with consistent market share gains across several brands [46][49] - Western Europe presents challenges, with low consumer sentiment in some markets, but opportunities exist in emerging markets like Mexico and India, where double-digit growth has been observed [53][55] Leadership and Organizational Changes - The executive team has undergone significant changes, with over 70% of the leadership being new or in new positions, aimed at enhancing skills in media, digital, and innovation [20][21] - The company is focused on building a more agile and accountable organization, with changes in the reward system to align with overall enterprise success [22][26] Future Outlook - The company is optimistic about its ability to sustain growth and regain market share, with a strong foundation and a committed leadership team [59][62] - Continued investment in innovation and consumer engagement is expected to drive future success [50][51] Additional Insights - The company is adapting to the evolving retail landscape, integrating emerging channels with traditional ones to enhance consumer experience [30][34] - The partnership with Shopify is seen as crucial for integrating commerce with marketing efforts [31][32] - The focus on content creation is shifting towards producing adaptable content for various platforms to meet consumer needs [33] This summary encapsulates the key discussions and insights from the Estée Lauder Companies conference, highlighting the company's strategic initiatives, market performance, and future outlook.

Core Insights - The Estée Lauder Companies Inc. and Jo Malone London have launched the Jo Malone London Scent Advisor, an AI-powered digital experience aimed at enhancing online fragrance discovery [1] Company Developments - The Jo Malone London Scent Advisor is designed to provide an intuitive, conversational journey for customers, helping them find their ideal fragrance [1] - This initiative addresses the challenges of online fragrance shopping, which often lacks the sensory experiences available in physical stores [1]

Core Insights - A new AI bot at Jo Malone, a beauty company, has successfully enabled customers to purchase perfume without the need to smell it first, indicating a significant advancement in digital retail strategies [1] Company Summary - Jo Malone has integrated an AI bot into its sales process, which addresses the challenge of online perfume sales by allowing customers to make purchases based on digital recommendations rather than physical scent testing [1] Industry Summary - The introduction of AI technology in the beauty industry, particularly in fragrance sales, represents a shift towards more innovative digital solutions that can enhance customer experience and drive sales [1]