ELF - Earnings call transcript Q3 2025

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Kristina Casey Katten

Thank you for joining us today to discuss e.l.f. Beauty's Third Quarter Fiscal '25 results. I'm KC Katten, Vice President of Corporate Development and Investor Relations. With me today are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer.

We encourage you to tune into our webcast presentation for the best viewing experience, which you can access on our website at investor.elfbeauty.com. could remarks release forward-looking the forward-looking and you'll factors our to please SEC, statements. of to find earnings rules our reports that many today from statements contain refer where differ Since materially actual these cause filed with

In basis. presentation a company's the includes information addition on presented today non-GAAP

most reconciliations measure. GAAP contains release between earnings comparable the differences the directly non-GAAP Our of presentation and the

to let Tarang. webcast me that, With over turn the

Tarang Amin

category-leading straight our another of will increased XX%, delivered you, Quarter our both KC, consistent our basis 'XX. per afternoon, $XX consecutive and share market good our net that the outlook market e.l.f. marked EBITDA XXX Results by Third adjusted high-growth Thank We of growth. only U.S. quarter. XX% updated public everyone. nearly to sales Today, points. E.l.f. and discuss In sales by gains, XXX gain XX quarters of companies. net for X grew a quarter million quarters. drivers growth we consecutive QX, share of sales X,XXX quarter consumer Nielsen and of the QX for of Fiscal in we We're the share and only for brand XXth of delivered least is X XX has rarefied out averaged and group growth brands putting grown cosmetics tracked companies in at

been the we net delivering on same ability At fiscal than trends growth. been to Our team capitalize ahead share with remain XX% XXXX market start and calendar consumption space our the of sales have confident XXXX year-to-date have to our take results softer We time, our expected. white in us. strategy, exceptional

a around factors: shows to in decline Beauty. promotional L.A. uncertainty January. mind the the around Consumer and platform. highly First, believe in December focused consumer of decline We wildfires elsewhere, this in stocking lower and conversation TikTok continued up X social see is reflective We category including

[ ]. global oil launch [ our 'XX calendar the globe letting we're QX, in of reviver viral lip was which launch ] in Second, our biggest

In built the addition, game. in higher last QX of ahead as retailers had big shipments we year inventory

reads We're than our the of these a in have launches early product slower expected. marketing spring we started XXXX couple launches for Third, off still activations resets. Initial days new our for and of for Spring

retailers our Over expanded refresh shelf the be weeks, end space These spring progress next not will Targets the Walgreens. and in few and add to our sets, innovation complete including shelf are until February. in still and of results will

lowering minus final our fiscal outlook quarter plus year the X%. the Balancing sales these net for we're of to factors, X% to

of QX, of Given remain confident the not underlying deliver QX our dynamic market-leading in between to rate growth. QX is believe business indicative and the do ability and we we our run

net half to delivered second in outlook year. contemplates As in XXXX. XX% top of the the of XX% the XX% half last second updated, our On growth sales growth we of

Care ahead, remain runway look significant growth. on with areas International. Digital, X we As Color Skin Cosmetics, focused we and for

digitally app. XX% loyal ongoing a direct-to-consumer and progress in enhancements holidays. QX promotional activity to last was highly program Instead, We're you own growth year. QX momentum triple-digit of [ were consumption with top pleased during brand on Beauty. is across as across day, of by foregoing value delivering mobile results only Mass our X in elfcosmetics.com Cosmetic up held to platforms channels with on QX remains social top in our and Mass with our the of Digital QX Amazon nearly these outstanding in XX% seeing site. year-over-year and digital every drove last our trends supported of We're consumption each promotional line our year. QX. Starting Founder we continued approach brand, digital with on native our on Let Digital. strength me our in ] e.l.f. update the with

consistently with XX% Our year-over-year. X.X members, surpassed growing over million recently loyalty Beauty program Squad enrollment

mobile care app has the X. Our app making a in rating and U.S. the single-brand holds of X.X skin now and over out downloads, most cosmetics downloaded X million

significantly In Color Nationally, is tracked Cosmetics outperform on the In [ basis of as down Cosmetics, in to category. we category e.l.f. channels our XX% market that share was a brand #X the continue XXX grew e.l.f. to QX, compared double on with increasing to the in a points. had brand on coming ] we more XX% focused approximately share and share, market the unit We opportunity #X years. approximately basis basis level XX% the than remain the with share X a double our mass dollar ago. years X%,

rank Target, longest-standing experience over growth fuel over basis by with share grew customer, with brand retail #X Walmart we consistent subset the XX% and share, key at doors. ago. the we're retail time. delivering space this we time, a QX, year believe international Target finding newer Target our also from other XXX a progress can cosmetic with reached In with replicating success Dollar great #X further of we QX, General success where we're points first We in our on making retailers. e.l.f. at at #X we up We're at growth for our believe In the brand launched spring.

to Beauty, new democratize spring. to by been expand legacy serve of mission doors share in rural have which exceeded and best underserved this have to additional We we'll particularly only brands. this access our into in General's Dollar Dollar served areas, the General results initial traditionally continue the Our channel, expectations and

cosmetics largest retail the productivity. We foot are pleased on unlocked retail basis most globally. customers with by e.l.f. our expansion per opportunities remains a our with linear continued driving dollar productive on brand focus our

productivity will gains a expansion of and the focus to are testament to effectiveness the on Our XX model of believe in consecutive continued our aid we space our further quarters share in come. years productivity

e.l.f. in decades. [indiscernible] over XX top a a at category care brands become skin Skincare. legacy by Looking has built skin dominated years, brand

to top category the market skin and other XX e.l.f. In the care of meaningfully brands skin outperform old. age grow years average share. the context, XX For continued QX,

As brand share. #X we holding compared a e.l.f. share skin see XX% runway significant X% about for look to today nearly ahead, the we growth. as holds

With the Care the retail Naturium opportunities ahead. are in of Skin acquisition of see well, sales. complementary price Ulta perform mass to further positioning X brands in into penetration of distinct We we've yet our points, skin XX% The that Beauty of their doubled fastest-growing now care to and we our continues have launch expansion audiences. Naturium,

Turning to International.

well by We net with markets. having our a XX% QX, International global seen before including ahead XX% sales peers sales with country. our model our their space net enter outside fueled Etos platforms, growth consumer markets Germany, up existing last of across into and significant XX% from white has engagement XX% over the as as Netherlands, of success e.l.f. U.S. in in new the Sephora, sales Today, retail expansion our global over Our in well particular grew launches in year, a QX, Douglas see Mexico. year driving we our Italy XX Rossman, presence with We've ago. social drove countries demand

excited we've wink of latest We've universal [indiscernible] superpowers Germany the obsession a marketing strength with in means Out using achieved global new odd driving with local disruptive top translates title of in, We're markets each our quality [ relevance. demand. in in brand campaign in an these e.l.f. numberXX, to markets bring In an also our to launched our cultural X ]. ratings. brand led our reflecting of He ranking Germany, to A XX new

[Presentation]

Tarang Amin

audience with few the In love which next brands global through and This seeing our effect. Mexico, is we're the value across of X able geographies discover over engagement e.l.f. to campaign, scale el of success into tapping efecto, launching brands. our Rutile's opportunity unique with the our core ahead [ Descubre areas weeks few gives us telenovelas of ] global see confidence for the one advantage. The e.l.f. the proposition. we been is has we're in

performance passionate value proposition of our Our supply asset-light quality, owners of a an cost best speed. powered by delivering with the and combination team culture,

points, products other life model, premium each strategy. our Our how consumers to seek these antigen, bring holy moat. retail that disruptive around grail reinforce areas activating to the millions productivity of of competitive each marketing at forms of unique brands delivering at may Blood parts our accessible and this price imitate our advantage innovation our globally. world powerhouse It's of

I'd growth. industry-leading quarter, integrated and powerhouse that's spotlight our our innovation how to our fuel This like with engine to marketing disruptive

unique the a ability taking Grails steady to have deliver products best bringing stream to We and and of Holy extraordinary community a from value. prestige our market an in inspiration

and working Our share Holy segments. approach driving is across innovation gains Grail

see SKUs of X held top we the Cosmetics, our top product doubled lip more share e.l.f. each last share held the of over and significant triple-digit drove eye most strategy prestige. any across We've year, XXXX, In XX years X Mass both mass launches our innovation gain in face, these opportunity of X the than makeup. and ahead. In and and XX QX, across in focused new segments

As and engine share, the in to of conquest believe share them. white XX% face, #X our ranking in an we these a compared have large segments eye. With over XX% in an have and X% ranking have lip, #X significant in the to we and we innovation share #X and ranking space

record our product one-and-done the track Many endure largest of for expand launches. building franchises a Spring franchises. have our product of XXXX instead rural We of launches that

cosmetics Primer, innovation a original mattifying recently we lips, both in face SKU between created one core Matte Grip Mass about Prestige. Primer, spell we that in To As eyes, #X a example, our fandom. which end, to We launched our Grip last and called support the continues balancing Power better version quarter campaign franchises. be QX, of and Power

[Presentation]

Tarang Amin

in sentiment, its playoff traffic XX% visible made saw power and U.S. Day the increase placements spot to lift sales. debut positive multiple community in Our an We site group with strong a engagement during have Thanksgiving on and high season. our continue

recent We amongst community ways our and Halo a best-in-class brand expanding sports, the are is Gen campaign Millennials Alpha. Glow amongst in unique Trainer, and finding fan entertain favorite movies. is with in and #X Our through engine our franchise. disruptive engage brand. the music #X Z ranks most marketing longtime to of Spotlights partnerships, Megan Gen e.l.f. brand and believe purchases

over just years. investment seen in helped has XX% increased to a XX% brand XX-point never in consumer Our in and jump space our XXXX I've to from expand years XX awareness unaided awareness XXXX. few a in unaided been the marketing in

U.S. leading brand the that As unaided [ growth. is, us XX% mass our in runway great confidence for Kazakhs giving has awareness, as ]

fiscal of will ability continue summary, key in believe to win our to we X fuel In advantage our 'XX and beyond. areas

deliver ahead, remain in we and As to continue to we gain share growth best-in-class beauty. our look ability confident in

over I'll now turn to the Mandy. call

Mandy Fields

growth experienced third grew in sales it XX% 'XX. net international Thank our did digital year-over-year updated outlook our of retailers highlights than you, top last benefited year. last QX QX now quarter We XX% national from fiscal results year. and and our the earlier on pipeline of cover growth I'll of Tarang. of retailers, and commerce for shipping

fiscal by Our in sales and both underpinned and throughout outperformance chains, 'XX category continued market globally. been growth the has U.S.

benefits Higher was up an from XX% related unit were QX in goods expansion costs. China, approximately exchange margin growth wholesale QX contributed Gross approximately prior was XX and compared cost mix XX points to savings higher and by additional to by gross year. partially with purchased on driven transportation point. primarily favorable mix points This of adding margin volume foreign basis impacts to Naturium's adjustments. offset inventory

of that by a QX or percentage a XX% basis, impacted per or Adjusted net was up $XX million and foreign unanticipated adjusted Marketing income was an XX% with $X.XX in the our last in year. million, in of adjusted the adjusted and between XX% quarter-over-quarter EBITDA compared and Digital last diluted XX% line fluctuations British compared dollar. Both for U.S. investment income share share EBITDA sales year net as driven currency as year. $X QX, million per versus quarter million approximately were $X.XX net $XX loss diluted SG&A sales, an to was year. this ago. and pound last by to with $XX quarter, was line On expectations of

the to cash and flow. Moving sheet balance

us positions in million growth ago. well cash balance ended balance with remains $XX execute of $XX plans. approximately to a our cash and long-term year hand the quarter strong, compared to Our believe sheet on million we We a

$XXX was in ago. with a million expectations and up balance from our inventory ending year Our line million, $XXX

to the Xx less remained strong. net ended leverage Our with liquidity debt in quarter of position than terms adjusted EBITDA. We

support and as strong cash behind We ERP our global well supporting focused our to remain year capacity extensions. specific this we're on growth people to our for to as investing The and distribution increased growth priorities on initiatives expect transition include the initiatives our consumer SAP investing year in infrastructure, strategic demand.

fiscal Let's our updated to 'XX. outlook turn for

of ] expect the growth XX For compared previously. full we [ to year, to XX% sales XX% as X% approximately now net

have than are timing of the softer expected, net sales we been discussed In our the by in QX, by consumption trends driven QX pipeline growth largely Our call. better driven expected, earlier factors off Tarang shipments. than starting the

second to And growth XX% overall, back As half a in updated XX% category. backdrop XX% last we the growth on delivered and net range our sales of the to the year. the look we cosmetics implies mass fiscal top guidance half of challenged of

As share and internationally. expand forward, gains our we our in we ability look deliver remain business confident U.S. in the to

include goods XX any approximately Turning on we now the at margin. up XX In from gross to as outlook points margin from incremental This be tariffs points expect an 'XX, China. gross imported basis previously. to recently approximately announced impact to fiscal compared XX% not our basis does year-over-year

impact tariff cost address in believe concessions, a response tariffs price to fiscal to our results. incremental and May. We our This to We a select XX% the hikes included As fiscal supplier increases. reminder, have to will tariffs plan from move XXXX XXXX our successful level. the year playbook leverage we and not savings outlook

in FX the supplier to This which growing favor increased we have of sales move that time, We around, our levers tariffs. address impact. international further with our mobile believe outside these the of and also China at our had we impacts base, diversification mitigated time

XX% of in sales XX% expect a net fiscal of net as spend 'XX. in QX investment implies We significant marketing year. as fiscal our standpoint, to cadence was marketing a to digital on that basis in 'XX From to compared at continue expected in last leverage in QX approximately sales and XX% XX% approximately marketing year-over-year

Turning EBITDA. now to adjusted

For our million the earlier line million million as well $XXX EBITDA adjusted to $XXX the incremental outlook. The year, loss as compared $X change $XXX due million top to $XXX we to as that million previously. now between is FX discussed to I expect lowered

of outlook for 'XX now XX% of in 'XX. to implies strong growth fiscal approximately XXX% the top on Our EBITDA adjusted growth we delivered fiscal XX%

a and underscore the summary, ability results we in In quarter our drive our the sales and category-leading unlocking have winning share We innings believe early full to market growth. our third strategy brands. potential growth for of are

With that, operator, you may questions. open the call to

Operator

Thank you.

question Bill Truist comes question-and-answer Chappell [Operator the Instructions]. We will now Today's session. begin first with from Securities.

Bill Chappell

the kind aspects in this if January, the going I with kind saw lip of you to walk just was trying what Tarang, the guess the with maybe how different you the into key question you understood understand just is tougher comp guidance long of like on think see lasting? it. through oil I

is Do we're better terms other this as will the a in move trying it's we you think understand X February, get of to So areas slowdown. the March, April? comps part to longer of just

on color great. Just any more that would be

Tarang Amin

our And a on Hi Bill, be that I'd gave slow when the far our happened loop the don't see lip prudent month. went we And things away X biggest I factors think January. to X%, the of say XXXX. category start approach oil oils exclusively pretty or to down cautious January, in in right we're to in that of being it by start? more then I why is broad launch the December. Ulta will in And lapping we it in one

on hill across that. a So pretty big we're going

and then And we are still through. new a our as go slower couple off it's a items start, to of early

As we with category. of each those starting go through the elements,

promotional One, December. consumers confidence a I bit going we period the on hangover highly a category have from feel the in that more a think X us bit the gives things forward. little

a you often promotional see promoted we promote, industry that quite While right after area. a bit, the trough and didn't

We down whether people don't stay deaf are on devastation. January, brands two a to seen open to tone I around conversation was wanted things. uncertainty think the going in posting One, XX%. shut in social or Second, down. way is only thing over wildfires during the attribute then for the And TikTok L.A., be TikTok, while, it's that to

So see on. as do time potentially better we those being goes

the happened mentioned, we this conversation of that initially light that the items those social spring to what what on in some relates on of is conversations. I to saw with softness in our particularly, also turn happened new We social items. some category, specificity virally. As count And really in

go and coming for doesn't with so we our up activations to forward, for us QX. just why a that we better see the and resets marketing coming that's adjust is the And get took and it couple shelf said, assume Walgreens. we with more hoping on trends particularly innovation better we're Target you when with let's at space as of have okay, able spring cautious get We're but our months, stance expanded

Bill Chappell

a trending? any you kind go full terms of into it maybe slowdown ahead? update Got quarter? are And Did how of internationally? And is international it. in little categories still any steam then countries just this of Or is Any like new you that? more same on seeing color the

Tarang Amin

really with International. we're making pleased the We're progress in

grew For level category quite standpoint, QX, the internationally. of headwinds business we're from Also seeing International not our a same we XX%.

So little it's the category but importantly, is a execution. more our better, bit

see the last our those of Germany, Rossman, customers, launched consumer in As a of into we rank even we Douglas, and Etos, maintained top all Italy, a of X in pent-up X Netherlands, back year we've tremendous demand. continue half amount to

band our in out and consumer the conversations we given the want growth pretty profile, doesn't with retailer there currently profile. retailer much that every a We're innovation e.l.f.

to continue So ahead see international. on you'll us full steam

be countries to hear We expanding we're going into. that to additional continue

And great our there. feel about progress so we

Operator

question And Teixeira with next from Andrea our JPMorgan.

Andrea Teixeira

if informed about a about mean currently? the more U.S. you is exit for you hoping afternoon, guidance? spring is the can operator, you detail and it quarter did speak of season everyone. as U.S., what innovation good you, and in I amount was the how on the this and the the coming talk you I consumption Thank good about how

what pull I I think forward heard also, And was that some from in this there Mandy quarter.

how a obviously, to in are and top U.S. number growth quarter, in X%-ish it negative line, we implies fourth be in if is the midpoint, the consumption in should seeing the because, the what have just U.S. So hoping see we a you pretty at

obviously, So to continues do assuming the that, European well. you're and if International

to the wanted embedded just of functions. So what in see is each

Tarang Amin

consumption consumption, QX QX a tracked Andrea, at XX% double finished channels. still if you in take about think, digits, look I we

strong. come down. did pretty In we see was January, that it So

saw a weeks You scanner if was a talked We're that gets in week the a it -- but basically actually so embedding that about. better quarter. negative in of I course we're couple of our slowdown what data hoping doesn't get the that guidance, better, of

And forward pull to then that our pipeline. relates really of the terms in not, or

we really pipeline go a little feel more door in in in growth the what down -- a than we implies QX. think wide in second to the kind really a had Our out XX%, guidance about. category, bit new much of our when That which half. the is we of good That's QX XX%

grow to share. continue We

which us from growing of pretty January, brands built a a growth from basis consumption of for soft a month out was the I any fact, ones only period. In was points consumption standpoint. mean modest in of it that XX standpoint, We're the share. still

doing I the how much tracked category. you But probably of we're in indication gives channels think than up the that better an is X%.

Andrea Teixeira

forward, the of between newness view any newness trade? say as ground that things category, terms what kind Anything Or newness TikTok kind sentiment? seems opinion difference the regarding and like of your change of Anything strong, is time. look of on besides of it like channels? everyone's the time you something you consumer say the in of may all And the as needs is is these discussed this the that industry on might that cadence the that you there shake or we can like kind not execution and to the any

Tarang Amin

Part feel is activations some newness January, items. softness our doing we spring about it's to in say on early. we we're it mentioned, our I'd less marketing is social new still what We always related good of against what items. of still have new it conversations about our So saw

And see so you're going hit. market to activations those

but The the new resets thing to able items as when with them other of that will until resets. on that spring spring helps get we're February, end complete not be well. always our The newness helps is

say during saw Ulta we across between channels. much channels, back most And little pretty worried so how exclusively for actually month. was lip that -- and Ulta We our in of they to to that with amount I had, going the comp were oil lip about QX, us, were then strength of in and that pleased a we oils massive I'd able than period,

off some their January, a in January, into as tailors extremely business to terms in see digital look I get pretty in Walmart across Amazon of we can our As do comps. you well. good start is

space We But we ready have in before we see. the we little items Ulta softness Target bit of we that's expansion number again, get before target shut resets, we off as look. take and particularly a as for a a that that see where often of

So no macro that signs retailers from is across I look on. what a pinning guidance we're the as warning

Operator

our question Mohsenian comes Morgan Dara Stanley. And with next from

Dara Mohsenian

The and here, mentioned to perspective, but little adjust environment? tweak think the just spend maybe the your for some us level and detail of detail how also plan as softer on you that with activations, And the marketing your the marketing portfolio. necessary that the there, [indiscernible] would a on you more in the manage the et environment just how just of you plans maybe about softness from new a spend be cetera, was helpful. the across helpful. January tweaks you strategies business You more efforts a you drivers time innovation, the around Can in gave of

Tarang Amin

gone as go TikTok the We this is now we some normalize marketing the key back that uncertainties do really we wildfire the feel start quarter our mentioned, the conversation innovation I'll for and of forth. to social that. kind with against of activations I as So over, in is forward quarter, will the

starting seen pickup with those the are in bit and customers help will a also see will activations. roll out. we've lines. And those help we definitely plans then resets to social really good as which little conversations, the our have resets, going a what's to the of That along we [indiscernible] across So

In franchises our before about or would a say strategy we terms better talked and on an new quarter webcast, our face support saw throughout big marketing eyes, it well Power our playoffs. that we of core on balancing behind fandom there's quarter not I standpoint, business. We last a immediate that our the items as as shift Grip impact spot the shared have lips, we ran it in Thanksgiving our

going balanced that franchises we're I'd our so team, And it, keep to new our items. call and core

items like One about things other of on core franchises. are this season the of new our our a lot they is I

So power Grip builds is the our and Power Prestige. #X group if our Halo that look Grip on SKU Matte, I at powder across Mass Power builds franchise, will good original core creative Glow, Halo core those which the items, we've franchise. got show but Megan we of spot franchise. believe each didn't on with We Trainer, new the benefit also on Glow

We currently debated We behind made we sense the about think money money. decided little we didn't good to ROIs bit invest of what face feel the macro where the in kind are is more spend necessarily that. we're cautious. of We But achieving. more whether it consumers a more consumer

to doing continue [indiscernible]. disrupt. think I other you'll that And so we're continue and tomorrow, see -- attention I some we'll mean things news to

Operator

our question with from And Ashley then Helgans Jefferies. you. comes next Thank

Ashley Helgans

in some at Beauty. gave months, of look the slowdown January on color it's kind last you definitely mean in industry Mass But the if back I slowed. the cosmetics X Mass good over Tarang, So we

we color been that any on just going more back outperforming. cosmetics with little You further? a consumer Mass if maybe But guys what's have on look

Tarang Amin

the I a look category. X months, factors results the last if a bit that leading there of little would a the was consumer of post. uncertainty. back say [ a insert on say elections, that One, the Mass the weaker consumer was lot We up I there's Cosmetics number across X it categories, over whether of to in industry saw ] So primary I'd

what's there in the going there's think I economy. worries what's still state with happen inflation, of the out of terms to

weigh on definitely category. that So did the Mass

I spend, we is like sometimes innovation. of we're only felt would of second level marketing level thing the the terms right of in going in ones say direction our engagement, the our the

we definitely of that the kind more for look so And rebound of see a in category. to

pretty would if Category period, you say, back a has at thing the category, in strong in those back soft. back so released it last pandemic level. really Mass go seen one where actually I'll quite we have cycles, XXXX, all the soft Obviously, strong back they way long back come strong. cycles been we've saw very to it XXXX I been Each a XXXX. come The a to period go the -- was of soft,

that And averaging is from is question quarters remain a there's delivered consumer longer no said now approach have should there over the category. still Dara, again, weighing our huge last of I So approach. there XX the macro decades a think net growth reason And are I XX%. on we've in shifts on sales the bullish on the right category term. But to do our I

strategy making seeing to in life, challenged even bring and to response balance between on Our are making really we the to visual them core in franchises the and having feel approach with those in working. The sure right tweaks new properly our category. what a we're shelf activating merchandising we're that that is that items, marketplace, we're really confident

Operator

comes Our Tong James. Olivia today next question with Raymond from

Olivia Tong Cheang

international. course, e-commerce recognizing, more or the because that a talked But little you of about whether talk last shows, distractions several to about wanted QX, I weeks. you've in the bit of typically scanner outperformed

not of your that value So But on that? the the And greater down, this on talk quarter? then, on your you view some isn't case can perhaps why trade slowdown. to ability what's when focus capitalize realizing immune category And consumer course, you're messaging? about

Mandy Fields

the much for question. you Olivia. Hi, Thank so

QX. we some at QX, shipments great And we because our we're looking is half. the into growth of again, pulled looking those So overall, overall, second for are pipeline feel half about up at second to what XX% XX%

think internationally seeing. business got overall. trends, talk trends stronger to you of that I of on And at outside second still when about scanner digital do scanner and you're So outperformance U.S. half you those we is the have look that

so that. we're good And to pretty looking and second XX% XX%, overall why is we're this at at half our about feeling the

Tarang Amin

add little taking mentioned consumer and been cautionary January, in has ourselves. time. earlier, than a always we're the that macro And call don't our our with transparency just to we standard to our over something, approach the we that, it softer think track of I just record we'll start If in investors, of see where a I out. to better it's [indiscernible] ahead a hopefully, get more And

then terms to we a continue it how as current capitalize of in share. And build in to see opportunity this we environment, great

even anybody As weak points XX which January, a I was in still we've built share, for us, most basis built. share the a month mentioned,

So we that's how you as And mentioned, we're prices. going an value have to continue quality, incredible incredible proposition, capitalize. Prestige to

see for really the continue that, overall of are lower-priced worried on to kind to of who that about going shine are items us economy. You're available our a light particularly those some

build that assortment on an those, as you'll continue well We to to more as have see and a share. good messaging opportunity on

Operator

Patty And with our Kanada comes Sachs. next question Goldman from

Patrice Kanada

and Amazon on one digital. Just

do with could cannibalization your you're maybe talk risk? consumers new brought for some In in-store presence? detail has reaching Is example, this Amazon. think channels, to partnership new the guess, maybe terms two, you about of about then bringing And demographics? to seeing you're more specifically or you you, and that in relative I what seeing how something momentum online your And digital on one,

Tarang Amin

is So I strong digital quarter, QX. the our would say in business

was We've search on The was great really of to happens a with deal get Amazon. up low higher discovery being Our on deal see growth that. results XX%, movers speed great rate Obviously, Amazon. want digital Amazon. even than to is strong Amazon A the their those convenience plays overall the of business continued product. Amazon's happens able of of who

other of U.K., markets. growth ahead internationally but the U.S., of of Germany, as We only Amazon. continue strong. So see and expanding markets, in one customers. we a being their key Italy not top-performing partnership we is We're and trajectory that the in the one see our extremely also with number entire other opportunity platform, on long started That the we brands a and Amazon

And of about our cannibalization, they have of that then and terms we've search being on or And they think, Amazon, cannibalization, capability really our retail see comparable the definitely across terms profile, way are of where new I I some kind in customers. there. talked of buys terms our have consumer because as of with pretty net then customers. discovery where in strength we margins terms, that some done of But model our consumer in agnostic

accessible taken we We consumer have make to best of the always stance that every to they want Beauty the shop. wherever

choice And our consumers the net so that have having on to some get portfolio if given love think overall Amazon, and just it's additive there of they cannibalization we where is do strength, we applied.

Operator

our Thank question Korinne Wolfmeyer Piper from you. And next comes with Sandler.

Korinne Wolfmeyer

you're QX to I guidance you that versus we've for how numbers, been to mean doing on fill I kind that's is wanted pretty The meaningful lift My if international a QX? way happened quantify slowdown us a then trend us you And seen much as see help one. well. been give the in expecting any to international pipe fiscal understand first a of there's what the outperforms provided. quick more can of one better exceptionally we've it's typically does say just the any to imply seeing. in color how that

quarter. takes help the such So could maybe you understand for the you're a there us why of anticipating and puts slowdown

Mandy Fields

that, have in because pipeline, why, whole. helps a second that whole can year. we quantified half of than pipe last the did much looking of though kind QX we go That's that have QX not the on to for out but make again, story really we're in So more at we did

Tarang Amin

might And international, is our we remember have then on out think on see launches, [indiscernible], a but can't in I'd we there. had tell continue the pipeline Etos been What a momentum which to some number go in international as in I QX we other countries in had Netherlands, of more I of you international.

launching do launches. So cadence but continues A markets to down a we to worry lot The with our absence a in within of that growth will kind our existing the has quarter of in of overall rate new run the about. not pretty the retailer little be of overall it's the rate come something bit, strong.

Korinne Wolfmeyer

margin. touch Great. quickly the if on And I could gross then just

expansion about should in I thinking coming run the bit. going proper the with rate wholesale, down little how the and forward Naturium for Naturium? be is margin think a margin we gross for more with wholesale

Mandy Fields

Yes.

on this we're had actually, on something gross points From brand really overall. raised XX our margin year. we see up and that outlook And our basis our can on expand in as the standpoint, Naturium points in planned gross a basis XX guidance, pleased you we're our ability is for. So we're what from seeing to taking previously distribution with to margin margin the

gross margin even still strength with mix. standpoint, Naturium's a So from see

Operator

And our UBS. question Grom from you. Peter next comes from Thank

Peter Grom

well. operator. Thanks, you're hope Good afternoon, doing

mentioned months this think perspective rate what will rate Tarang you business. is profile love of I get just run it So growth growth before given on 'XX a we run the you're is some a you And today? what I XQ know seeing that the But of for few would reasonable indicative you don't guidance. think be

within you share bit January, XQ. basis weaker in And performance? XXX you solid points environment the understand like, versus term, many thinking a about be the should your XX Outlook pieces step moving is category it near a Still given down but then note. market points maybe referenced for the but basis of are persist in that, a wanting how conservative just totally to

see market So here. just trend improving share you kind that if a curious of from

Tarang Amin

you in wait run to going tell tell in to have Peter, Hi QX rate, for us us until to FY we give I for what the to have say of run kind in rate. would guidance you what that 'XX I'll is, run what more rate had of for between May is the we probably QX terms and

So if lapping, see highly look growth it's growth. at I before. XX% we're anomaly. back have otherwise, fact that the we're color that an consistent other think QX, half, XX% And than it growth in the year the much this been Also a we give you we lapping doesn't as to that XX%

still X-year really So on a basis, it's great.

#X on a white space we #X be a U.S. market other rate not clear in will the is have. significant in sight units why Cosmetics. QX that still the much run dollars of better only clear line to in and confidence gives me Color I The thing than mean leadership in

very in to and about see pick digital both e.l.f. there. share and continue I skin up just talked rates strong growth international. We Naturium,

of to quite greater me in a gives ability kind that So of of category-leading white growth. terms confidence space have sustain bit our we

January, tells In surprised terms share basis XX we've of in strength market the we have. pleasantly weakest you share. I of built actually in that was we seen our which just that probably points month

our market we're ability build confident of to So to share. highly continue

look nationally For at customers, target great closer strong in at if versus across share XXX with with other even I We customers. to retail we're share XX% points have perspective, at XX% of over we grew We even Target. other seeing great Target, progress a a position. saw share Target progress share basis

to particularly And from we I'm went again, standing the #X position that the there. Targets strong position at So Walmart. still. pleased growth not really #X

up continue to ranking customers. other in We our pick

but don't types haven't a market to bogey standpoint term the So be shares. -- told I we that of I is understand from mean, get we at able I don't wouldn't frame, long share I you to the time look why

time. bigger a opportunity. We even Target other have is Skincare of a retail customers over

market. to in sitting XX%, Skin Care a We we're on go just we think there. have way share a e.l.f. I X% got on long skin

share share that top I will how strong what share growth of sometimes what cadence much are you vary of very of just rate. think growth investors part on lapping? miss grown The we've is

terms lead bit, and growth. So share category our in still you'll that bounce around very to of see the confident a little we're but being able

Peter Grom

one if super could then I you. for maybe just squeeze in That's And helpful.

quarter fourth leverage. guidance, a seems imply to the lot SG&A implied Just it of

versus So much buckets maybe digital and just that SG&A? the is within unpack you can of marketing how other maybe

Mandy Fields

[indiscernible] QX, the leverage, in about, we which outlook So to QX in talked leverage our QX which year. from Digital, And XX% our applies year, XX% as as implies significant a XX% as And well. putting of really, for last was SG&A. to

have we digital behind a and invest marketing people lot So from that of as to is infrastructure. continued coming and leverage our

Tarang Amin

point, as well to And continue not later investments we've expansion our business, we're to in year, made importantly, invest SAP we making support investments able internationally. to that we seeing in as U.S. to get be The globally. we're in on that our our I both continued this growth brands, distribution but mentioned on would centers the the the the say SG&A to in only

invest leverage So continue continue to being strong be about in drive to going to get growth. feel but I the be we're balance able good to to things able able also need the of to to

Operator

Bolton-Weiser our Thank you. comes D.A. Davidson. question And from next with Linda

Linda Bolton-Weiser

is in the tints. there innovation. then Just product, the on copying, some has Prestige there there's like Globe that And product be out in company is cloud market jelly launches It of the a ] question of like this that innovation seems sector pretty [ and primers, a your good there's primer. the a could you foam

maybe just terms copying. like So in there. of seems there's your It slow down definitely innovation out

progress is making you're And progress where low, in talk what and making maybe could you talk your about that. then Mascara. about talk very you're categories those the maybe And share like So foundations, about also there. market

Tarang Amin

Hi Linda.

you, have all, So pipeline. would incredibly tell first an of innovation strong we I

January. Glow slower at and Matte Prestige, it [indiscernible] continue So [indiscernible] what taking that incredible in I look a take inspiration. follow going a to for talked you'll Grip see an start to our about our little but items. We're us, Power Halo Grail was you a cover to if bit our From has of But Powder, prestige a community really Power unique equivalent. is innovation Grip that. continues overall Holy

have for innovation as fall of of spring years. X we cadence We out coming well, great go a year, the next

is. sequence it cadencing the or of comes to what some that of innovation A lot of

the twist only incredible always not our I probably within one products. The a quality We product. never the make copy Prestige has always is, always able thing price our twist. points, correct market. we but So we a put study e.l.f. to I'll we the e.l.f. on It have being can, mean biggest one we that twist. of you the

Prestige, I very you'll from terrific getting is does to those and pipeline products inspiration would say community only our with a of so see job And team strong a from innovation our from us. and not continue innovation

Mandy Fields

question on, on what some add Linda, in your our I would on call Conquest the Yes. progress And just categories. of we

few as we've of last a maybe seen is into come over this X%, X% that. a Lip we points year. year, great think I that ago, grown we A XXX and have years had in basis lips, example even share

categories. it we're allows point, Mascara, Conquest doing And pick do we when those to up Tarang's innovations us across that and have to Lip, to really those share, so continue Foundation,

so to So we have lot share a but potential. much do have

Operator

Canaccord Thank comes our Susan at Genuity. you. from question next Anderson today And

Susan Anderson

in to gain not on kind wanted some and of sure more of maybe there. follow Ulta, color if And then up performed more I'm Naturium. on then if U.S. if in the also, how in existing also growth quarter or I give seeing terms any the customers brand on And the you new space you could you rollout you're to customers that on colors globally. could curious the buy the there. have that rate

Mandy Fields

QX. particularly that Ulta, continue in in show growth, build launched, to business we continue in performance overall Susan to with our and with week They see Ulta. over very Naturium, we've week We're where pleased especially

And well. Naturium. we're has on seeing with and space the So opportunity reminder, very we're as as it pleased white tremendous the distribution expanded a growth that

of we've as we continue well. and top-performing retailers space. in and but They is on as do a pleased care overall progress doors, dot-com, progress hundred skin boots. have their few They for in white X sell [indiscernible] Target are well of only We're great with the skincare Amazon Really the Ulta, seen really did opportunity own to them. rest there and retail. the see world doors, that launch boot

the for excited forward. very as prospects look Naturium we for So

Tarang Amin

skin to you'll with really continue Naturium. great hear with effective, Yes, formulations incredible extremely resonance performed care, expansion other consumers. on well, biocompatible distribution It's clinically

about we're continuing So very build out. excited that to

Susan Anderson

your you brands you strategy. I it Okay. sounds brands of seem you other landscape. in starting how these kind it do I though some brands then it little the that's -- operate in guys coming rolling of that more like mean necessarily such differentiated use other or and other also, add new maybe making products? bit brands competitive terms you a copy there's out able the guys could learn a general, don't are if Great. kind like landscape as on I feel of bit K-Beauty some guys then to does like into just just are little think to and maybe on copy And legacy the maybe of Pop a competitive, And follow-up, guess, and hot more smaller trends.

Tarang Amin

even this brands million are more more think I'd you you So you is million difference retail tracked who only $XXX X,XXX always than X $XXX skin look category XX. and think care it's But Nielsen. able few I retail X able of big to. cosmetics Nielsen is at been what has has by e.l.f.'s there's I tell think with The in mean competitive. alone, to only and ones are sales. which I than I sales, scale if very

going or to at you're go see a very a sustain small come lot brands So level. of and

From we're like than we've a stronger I position, competitive ever been. feel

of areas at our look a take competitive you advantage. If

out one we at X campaigns how competitors of entertain first look to moved people they already XX by time are we and [indiscernible] or will market, one, the our as the our figuring unique people try I our last X. elements to of pivoted copy engage any some community, I the often, have elements mean, ability copy and do go to on we by and think, our platforms brand, this, While but and to lucky will we've they're in try other of

just different So at those we're for on it's and elements. a which kind operating [indiscernible] bubble of

quality And advantage of have. not ability seen is to important at points anywhere then anyone thing That probably competitive this we come have. we the prestige most close we price a unique have having the

up know, fall. with least launched. of we or if even so the have X just more I it's I be legacy look at I -- follow we that to a don't X at Grails players, nowhere might we that basically, the they on have dupes in couple mean just We'll year period, lucky, they're near. X, the And in able as X Holy

that I position. great feel So competitive from

kind I have. that, momentum last on the think we've years been share frankly, the is to in shows the others And we of of that the indication our best market not doubled than able how replicate market more have X success share. the

Operator

And America. from of question with Bank Anna our next comes Lizzul

Anna Lizzul

well give Thank time trends you the performing could just as think then Naturium? wanted you to much us category outside can performed for seeing as how I underperformed Color in to the versus part you detail you're parts in if continued just a more on on frame. versus perform question. I by is And January if so breakdown comment Cosmetics, of quarter well well? that for care which maybe lip the of e.l.f. skin skin and there on see

Tarang Amin

So segments January, I'll share pretty we do lip. broad well massive strongest the And I'd saw as each gains in strength with care. in say, Cosmetics core say in you one QX, saw subcategory In Color segments. it X parts. of I'd pretty one as in skin of a across every our in our

see back Lip this momentum to to We continue point. good in

see I any a bit term anything more the don't long for indicators we collection challenged. again, that. think But on was little

is continue skin of engage approach our in grow But innovation least we care. clip at And our our how with we share the consumers grow skin across faster strategy a then care continue the opportunity to segments to to January. and have, overall, of each

Operator

our comes Thank with next And question from Baird. Mark you. Altschwager

Mark Altschwager

retailer guidance about for any talking your partners softer your are incorporate the retailer consumption trends? major Does this updated destocking? of And expectations given

Mandy Fields

even still are most from have we not heard carry. e.l.f.'s, the Mark, Hi we point. this being that down, our consumption that retailers brand at our productive our With retailers with

we continued our orders typically see so on will product. And

just have like not we that. so seen And anything

Mark Altschwager

understanding, could flexibility in up this then you 'XX. is specific rates fiscal demand frame don't should separately, revenue the to persist? But on want I run the for just get there too structure And backdrop your in of expectations level cost softer

Mandy Fields

Yes.

our Again, but is as as marketing driven we by So costs being flexibility the P&L, in about that talked there certainly QX, reduce certain we investment, in leveraging. our think I of largely flexibility can to you our kind about see on SG&A where areas. we have is have

We every are our running year. savings that with have we programs suppliers cost

have Really, the behind has the white we that on our areas, just sure infrastructure that space people we those spoke focus Tarang business need making the been capitalize investing and on about. and

And move areas we sure of the as we so growth ahead, really make against those so make really in continue just more our that business. that's to focus progress

Operator

this And like concludes question-and-answer you. Tarang Thank conference for over our to session. closing I'd turn the back to Amin remarks.

Tarang Amin

by FY creating 'XX outlook. look to close for Beauty will every everyone, our to your and incredible a the of with want another I I company. kind to e.l.f. for you, e.l.f. saying discuss delivering who every joining May, in thank of you forward quarter and I We passion how industry-leading e.l.f. today. and results. Well, am in thank want dedication you and partner of us team a of to some proud fourth seeing different CAGNY results speaking vision at weeks Beauty our quarter of few for

well. and Thank you, be

Operator

you. attending We for call. Thank conference concludes This you all today's thank presentation. today's

You have now a wonderful and lines, disconnect evening. your may

e.l.f. Beauty (ELF) 6 Feb 252025 Q3 Earnings call transcript