e.l.f. Beauty (ELF) Conference Call Summary Company Overview - e.l.f. Beauty was founded 21 years ago, initially selling cosmetics online for $1 each, which was considered revolutionary at the time [4][5] - The company focuses on making beauty accessible, with a mission to provide prestige quality at better value [5][6] - e.l.f. has achieved 25 consecutive quarters of net sales and market share growth in the U.S., averaging at least 20% sales growth [5][6] Core Differentiators - e.l.f. is recognized for its unique value proposition, innovative products, and disruptive marketing strategies [6][7] - The company has become the number one unit share brand in the U.S. mass beauty segment, with a clear path to leadership [7][8] - e.l.f. has successfully introduced products at significantly lower prices than prestige competitors, such as the poreless putty primer priced at $9 compared to a $56 prestige item [8][9] Competitive Advantage - The company emphasizes a high-performance team culture, granting equity to all employees, which aligns their interests with long-term shareholder value [12][13] - 74% of the workforce is women, and 76% are Gen Z and millennials, reflecting the consumer base they serve [12][13] - e.l.f. operates with a rapid innovation cycle, taking approximately 26 weeks from concept to online sales, compared to years for competitors [13][14] Tariff and Supply Chain Management - e.l.f. has been subject to 25% tariffs since 2019 but managed to grow margins through pricing strategies and supplier concessions [16][17] - The average unit retail price for e.l.f. cosmetics is around $6.50, significantly lower than legacy mass players at $10 and prestige brands over $20 [18][19] - The company has reduced its production reliance on China from 100% to about 75% and aims to further optimize its supply chain [19][20] Innovation Strategy - e.l.f. has a differentiated innovation process that incorporates consumer feedback and trends, allowing for rapid product development [26][27] - The company focuses on building growing franchises rather than one-off products, leading to sustained growth in core categories [30][31] Marketing and Community Engagement - e.l.f. leverages digital platforms for marketing, including TikTok and Twitch, to engage with consumers directly [42][43] - The brand has seen a 20-point increase in unaided awareness, indicating strong brand recognition [46] International Expansion - International markets represent a significant growth opportunity, with only 20% of e.l.f.'s business currently outside the U.S. [61][63] - The company has successfully entered markets like Canada and the UK, achieving top positions with limited distribution [63][64] Recent Acquisitions - e.l.f. recently announced the acquisition of Road, a brand founded by Hailey Bieber, which has shown rapid growth with $212 million in net sales in three years [73][74] - The acquisition is expected to be accretive to e.l.f.'s overall business, with plans to expand Road's distribution and marketing efforts [88][89] Portfolio Construction and Future Outlook - e.l.f. aims to maintain a portfolio of complementary brands that disrupt the beauty industry while ensuring accessibility [89][92] - The company is focused on organic growth but remains open to acquisitions that align with its mission and growth profile [95][96]

E.l.f. is acquiring the celebrity's cosmetics line.E.l.f. Beauty (ELF 0.79%) stock has been through the wringer over the past few years, and it's down a whopping 40% over the past year. That's despite robust growth over that time, and a brand that continues to surge and gain market share.The market has been worried about rising prices and slowing growth, but smart investors can see that e.l.f. has a long, strong future. In tune with that, the company just acquired Rhode, the cosmetics line developed by mode ...

Core Viewpoint - e.l.f. Beauty is experiencing strong growth and market share gains despite uncertainties related to tariffs, supported by a global price increase and the acquisition of Rhode, a high-growth brand [1][3][8] Financial Performance - In FQ4, e.l.f. Beauty reported revenues of $332.65 million, reflecting a 3.6% increase year-over-year, which exceeded MarketBeat's consensus by nearly 200 basis points [3] - The adjusted earnings per share of $0.78 is up nearly 50% year-over-year and significantly above consensus estimates [5] - The company has seen a 50% year-over-year increase in cash build, indicating strong cash flow management [5] Market Position and Growth Drivers - e.l.f. Beauty has achieved 25 consecutive months of double-digit market share gains in the U.S., driven by strong performance in retail and eCommerce channels [4] - The acquisition of Rhode, valued at $800 million upfront with an additional $200 million based on milestones, is expected to enhance growth and market presence [6] Analyst Sentiment and Stock Performance - Analysts have raised their 12-month stock price forecast to $117.76, indicating a potential upside of 4.58% from the current price of $112.61 [7] - The stock price experienced a 25% increase following the positive results and acquisition news, reflecting a bullish sentiment shift [11] - Short interest remains at 12%, indicating potential for a short squeeze, although analysts believe the current outlook mitigates risks [10] Operational Efficiency - The company benefited from foreign exchange tailwinds, leading to lower costs of goods and improved gross and operating margins [4] - Total liabilities, including long-term debt, are less than 1x equity and 2x cash, positioning the company favorably for future investments [6]

LONDON, ENGLAND - MAY 17: Hailey Bieber attends the Rhode UK launch party with Hailey Bieber at ... More Chiltern Firehouse on May 17, 2023 in London, England. (Photo by Dave Benett/Getty Images for Rhode)Dave Benett/Getty Images for RhodeEver since E.l.f. Beauty came on the scene, it’s been in the business of disrupting the beauty industry. “We were founded in 2004 and have sought to disrupt the traditional beauty model of high prices, long product cycles and traditional advertising,” it stated in its firs ...

On May 28, e.l.f. Beauty ( ELF ) presented its quarterly earnings, which were better than analysts had anticipated, due to the double beat in terms of earnings and revenue . However, theMy primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. Targeting those with a market capitalization of less than $10 billion, affords ample opportunities for growth. The ideal scenario is for these companies to demonstrate a ...

e.l.f. Beauty TodayELFe.l.f. Beauty$111.67 +21.17 (+23.39%) 52-Week Range$49.40▼$219.77P/E Ratio66.08Price Target$111.71Add to WatchlistAfter seeing shares take a huge tumble through the first several months of 2025, e.l.f. Beauty NYSE: ELF may have just had its best day of all time. Shares of e.l.f. are on pace for their highest single-day return since the company went public back in 2016, up approximately 25% as of 2:30 EST trading on May 29.Get e.l.f. Beauty alerts:The company, known for its cosmetics t ...

elf Beauty Inc (NYSE:ELF) is surging 31.1% to $118.63, after announcing a $1 billion acquisition of Rhode, the skincare brand founded by Hailey Bieber. The deal will help elf Beauty expand its skincare footprint and appeal to higher-income consumers. CEO Tarang Amin praised Rhode’s rapid growth -- $212 million in net sales from just 10 products -- as “unprecedented.”The news came alongside a strong fiscal fourth-quarter earnings report, with elf Beauty posting adjusted earnings of 78 cents per share on $333 ...

Model Hailey Bieber's makeup and skincare brand, Rhode, is being snapped up by Elf Beauty for about $1 billion, giving the budget cosmetic retailer access to a celebrity-endorsed product line that has become hugely popular among Gen Z and millennials. Elf said on Wednesday it would pay Rhode shareholders $800 million in a combination of cash and stock and an additional potential earnout consideration of $200 million subject to certain performance-related conditions. Last month, Reuters reported that Bieber ...

E.l.f. Beauty (ELF) came out with quarterly earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non- recurring items. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations h ...

Workforce and Employee Engagement - As of March 31, 2025, the company had 633 full-time employees, with a high engagement score of 90%, significantly above the industry benchmark[37][41][43]. - The company has a diverse workforce, with over 70% of employees being women and over 40% being from diverse backgrounds[44]. Supply Chain and Sustainability - The company has developed a scalable, asset-light supply chain, primarily sourcing products from China, with additional sourcing from Thailand, Taiwan, Europe, and the United States[34]. - More than 85% of the company's products are produced in Fair Trade Certified™ facilities, reflecting its commitment to sustainability[47]. - The company is committed to reducing its carbon footprint and improving sustainability across its supply chain, including packaging and water usage[48][49]. - The company actively engages with suppliers on sustainability topics and is dedicated to responsibly sourcing sensitive ingredients[47]. Product Quality and Compliance - The company has a strong focus on product quality, formulating products without over 2,500 ingredients, compared to the FDA's restriction of 11 ingredients[46]. - The company does not rely on any single raw material, ensuring broad availability and regular quality testing for ingredient integrity[35]. - The company is subject to various federal, state, and international laws affecting online business operations, including consumer protection and data privacy regulations[65]. - Compliance with environmental, health, and safety regulations has not materially affected the company's capital expenditures or competitive position[66]. - The company relies on expert consultants for EU product registrations and compliance with regulations[64]. Financial Performance and Risks - Cash and cash equivalents increased to $148.7 million as of March 31, 2025, up from $108.2 million as of March 31, 2024[365]. - A hypothetical 1% increase or decrease in interest rates would result in an annualized change in interest expense of approximately $2.5 million[366]. - A 10% adverse movement in the Chinese Renminbi compared to the US dollar would negatively impact cost of sales and net income by approximately $42.0 million for the fiscal year ended March 31, 2025[368]. - The company does not have an active hedging program for foreign exchange risk, exposing it to potential losses from currency fluctuations[367]. Operational Insights - The company recognizes seasonal fluctuations in sales, with higher net sales typically occurring in the third and fourth fiscal quarters due to holiday purchasing[50]. - The company has invested in automation technologies for its distribution centers to enhance efficiency in picking, packaging, and scanning processes[36]. - The company operates as a single operating and reportable segment, with further details available in the consolidated financial statements[67]. - The company’s principal executive offices are located in Oakland, California, and its common stock is listed on the NYSE under the symbol "ELF"[68]. - The company makes its SEC filings available on its website, including Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q[69].