e.l.f.(ELF)2025-05-28 21:57Workforce 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 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 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].