Q3 2026 elf Beauty Inc Post-Earnings Call

February 13, 2026

Sydney Wagner: Members of the media and the press are not authorized to participate in this event. If you are from the media or the press, please disconnect from the call now. The content presented on this conference call is proprietary to and/or subject to the copyrights of Jefferies or third parties. You may not externally record, transcribe, publish, or otherwise publicly disclose any portion of this call, including, but not limited to, the name or other identifiers of the speakers, unless Jefferies permits it in writing. Please note that this call is being recorded. By attending this event, you agree to all of these restrictions. Hi, welcome everybody. My name is Sydney Wagner, and I cover beauty and personal care here at Jefferies. Today, I'm joined by e.l.f. CEO, Tarang Amin, and CFO, Mandy Fields, to discuss e.l.f. So thank you both for joining me today.

Sydney Wogen: Members of the media and the press are not authorized to participate in this event. If you are from the media or the press, please disconnect from the call now. The content presented on this conference call is proprietary to and/or subject to the copyrights of Jefferies or third parties. You may not externally record, transcribe, publish, or otherwise publicly disclose any portion of this call, including, but not limited to, the name or other identifiers of the speakers, unless Jefferies permits it in writing.

Speaker #1: The media and the press are not authorized to participate in this event. If you are from the media or the press, please disconnect from the call now.

Speaker #1: The content presented on this conference call is proprietary to and/or subject to the copyrights of Jeffrey’s or third parties. You may not externally record, transcribe, publish, or otherwise publicly disclose any portion of this call, including, but not limited to, the name or other identifiers of the speakers unless Jeffrey permits it in writing.

Speaker #1: Please note that this call is being recorded. By attending this event, you agree to all of these restrictions.

Sydney Wogen: Please note that this call is being recorded. By attending this event, you agree to all of these restrictions. Hi, welcome everybody. My name is Sydney Wagner, and I cover beauty and personal care here at Jefferies. Today, I'm joined by e.l.f. CEO, Tarang Amin, and CFO, Mandy Fields, to discuss e.l.f. So thank you both for joining me today. I'm really excited to chat.

Speaker #2: Hi, welcome everybody. My name is Cindy Wagner, and I cover beauty and personal care here at Jeffries. Today I'm joined by e.l.f. CEO Tarang Amin and CFO Mandy Fields to discuss e.l.f.

Speaker #2: So, thank you both for joining me today. I'm really excited to chat.

Sydney Wagner: I'm really excited to chat.

Speaker #3: Well, thank you for having us.

Tarang Amin: Thank you for having us.

Speaker #2: I guess I'll jump right in. So I want to start with visibility. Are there one or two additional touch points or frameworks that you think could help investors connect industry performance, your consumption trends, and shipment patterns more clearly each quarter?

Sydney Wagner: I guess I'll jump right in. So I want to start with visibility. Are there one or two additional touch points or frameworks that you think could help investors connect industry performance, your consumption trends, and shipment patterns more clearly each quarter?

Sydney Wogen: I guess I'll jump right in. So I want to start with visibility. Are there one or two additional touch points or frameworks that you think could help investors connect industry performance, your consumption trends, and shipment patterns more clearly each quarter?

Speaker #4: Well, I think really, Cindy, well, again, thanks for having us. You know, as we look at things, consumption really is the best measure of performance of this company and the health of the business.

Mandy Fields: Well, I think really, Sydney. Well, again, thanks for having us. You know, as we look at things, consumption really is the best measure of performance of this company and the health of the business. And the great news is our consumption remains strong. We were twice as good as the category this past quarter. As we picked up share for 28 consecutive quarters, and certainly our outlook would be that we would continue to pick up share and outperform the category. And so I really believe that's the best measure to anchor on.

Speaker #4: And the great news is our consumption remains strong. We were twice as good as the category this past quarter. If we picked up share for 28 consecutive quarters, and certainly, our outlook would be that we would continue to pick up share and outperform the category.

Speaker #4: And so, I really believe that's the best measure to anchor on.

Speaker #2: So then, how should we think about the relationship between shipments and consumption quarter to quarter?

Sydney Wagner: How should we think about kind of the relationship between shipments and consumption quarter to quarter?

Sydney Wogen: How should we think about kind of the relationship between shipments and consumption quarter to quarter?

Speaker #4: Yeah, well, as we've said, you know, shipments and consumption even out over time, right? And so as we go through, there may be some variability from quarter to quarter, but over time those numbers will line up.

Mandy Fields: Yeah, well, as we've said, you know, shipments and consumption even out over time, right? And so as we go through, there may be some variability from quarter to quarter, but over time, those numbers will line up. And so I think that's really the best way to think about that.

Speaker #4: And so, I think that's really the best way to think about that.

Speaker #2: Okay, so kind of looking for, you know, a closer alignment over the next several quarters once we kind of get past the—yeah, the.

Sydney Wagner: Okay. So kind of looking for, you know, a closer alignment over the next several quarters once we kinda get past the, yeah-

Sydney Wogen: Okay. So kind of looking for, you know, a closer alignment over the next several quarters once we kinda get past the, yeah-

Mandy Fields: That's the pipeline.

Speaker #2: Still, impact we've called out. Yeah.

Sydney Wagner: Impact we've called out. Yeah.

Sydney Wogen: Impact we've called out. Yeah.

Mandy Fields: Honestly-

Speaker #4: And honestly, I can just build on that. There's always going to be some nuance, you know, from quarter to quarter. There's always going to be some level of pipeline in the base and how you cycle through that.

Mandy Fields: Honestly-

Sydney Wagner: Okay.

Mandy Fields: If I can just build on that, there's always going to be-

Sydney Wogen: Okay.

Mandy Fields: If I can just build on that, there's always going to be-

Sydney Wagner: Yeah.

Sydney Wogen: Yeah.

Mandy Fields: Some nuance, you know, from quarter to quarter. There's always gonna be some level of pipeline in the base and how you cycle through that. And so that's why we really want to anchor to an annual number, because we know from a quarter-to-quarter basis, there's going to be variability, but really anchoring to that full year expectation, as we go through, just given that things shift around from quarter to quarter.

Speaker #4: And so that’s why we really want to anchor to an annual number, because we know from a quarter-to-quarter basis there’s going to be variability, but really anchoring to that full-year expectation as we go through, just given that things shift around from quarter to quarter.

Sydney Wagner: Mm-hmm. Mm-hmm. That's helpful. So earlier, you had described the global beauty consumption as trending up 8%, and then last week, updated that to up 6%. So could you walk us through what you believe is driving that moderation in global beauty? Is it consumer behavior, category dynamics, or something else you're seeing in the data?

Sydney Wogen: Mm-hmm. Mm-hmm. That's helpful. So earlier, you had described the global beauty consumption as trending up 8%, and then last week, updated that to up 6%. So could you walk us through what you believe is driving that moderation in global beauty? Is it consumer behavior, category dynamics, or something else you're seeing in the data?

Speaker #2: That's helpful. So, earlier you had described the global beauty consumption as trending up 8%, and then last week updated that to up 6%. So, could you walk us through what you believe is driving that moderation in global beauty?

Speaker #2: Is it consumer behavior, category dynamics, or something else you're seeing in the data?

Speaker #3: Well, we are talking about our consumption. And so, building on what Mandy just talked about, our consumption in the U.S. remains extremely strong. At least twice for the category was in this past week, it's even stronger.

Tarang Amin: Well, we are talking about our consumption, and so building on what Mandy just talked about, our consumption in the US remains extremely strong, at least twice where the category was, and this past week, it's even stronger. And so you're gonna see that bounce around a bit, but there's been a consistent trend of very strong consumption. The change from 8% to 6% really reflects some softness we saw in the UK and Germany. And our plans there, we have good plans, so we see this as temporal in nature versus anything structural. In Germany, starting with Germany, we have been lapping the massive launch we had in all Rossmann Germany doors, last year, and that was a massive launch, biggest launch they've ever seen.

Speaker #3: And so you're going to see that bounce around a bit, but there's been a consistent trend of very strong consumption. The change from 8% to 6% really reflects some softness we saw in the U.K.

Tarang Amin: The change from 8% to 6% really reflects some softness we saw in the UK and Germany. And our plans there, we have good plans, so we see this as temporal in nature versus anything structural. In Germany, starting with Germany, we have been lapping the massive launch we had in all Rossmann Germany doors, last year, and that was a massive launch, biggest launch they've ever seen.

Speaker #3: And Germany. And our plans there—we have good plans—so we see this as temporal in nature versus anything structural. In Germany, starting with Germany, we have been lapping the massive launch we had in all Rossmann Germany doors.

Speaker #3: Last year, and that was a massive launch base launch that they've ever seen. We obviously performed really well, had a lot of support going on.

Tarang Amin: We obviously performed really well, had a lot of support going on, and so you've been seeing the trough from that launch as, as we lap the Rossmann Germany launch. The good news is, just this week, we started launching into DM in Germany, and it's a very big launch. DM is the largest drugstore chain in Germany, and so, that's gonna do two things. One, you're gonna be able to lap the big launch period that we had in Rossmann with DM in Germany, adding to Rossmann in Germany, as well as Amazon in Germany. And the second thing it allows us to do is we'll now have, I think, close to 80% ACV in that market. So it gives us a critical mass to put more consistent marketing support on.

Speaker #3: And so you've been seeing the trough from that launch as we lapped the Rossmann Germany launch. The good news is, just this week, we started launching into DM in Germany.

Speaker #3: And it's a very big launch. DM is the largest drugstore chain in Germany. And so that's going to do two things. One, you're going to be able to lap the big launch period that we had in Rossmann with DM in Germany.

Tarang Amin: One, you're gonna be able to lap the big launch period that we had in Rossmann with DM in Germany, adding to Rossmann in Germany, as well as Amazon in Germany. And the second thing it allows us to do is we'll now have, I think, close to 80% ACV in that market. So it gives us a critical mass to put more consistent marketing support on.

Speaker #3: Adding to Rossmann in Germany, as well as Amazon in Germany. And the second thing it allows us to do is we'll now have, I think, close to 80% ACV in that market.

Speaker #3: So it gives us a critical mass to put more consistent marketing support on. We know that's been such an important driver of our business in the U.S.

Tarang Amin: We know that's been such an important driver of our business in the US, along with innovation. And so being able to put on our Elf on Zen campaign, which scored extremely well, was very well-received, really over the next number of weeks and have a continued support pattern. We feel highly confident about our business in Germany and what the trends are gonna be seeing coming out of Germany. The second market that we saw some softness in was the UK. And in the UK, we mentioned before that it was a more promotional environment than what we're used to. Some of our competitors, actually pretty disciplined competitors, even came out with some of their innovation at three for two, which we've not seen before. So pretty aggressive levels of promotion.

Speaker #3: Along with innovation. And so, being able to put on our e.l.f. on Zen campaign, which scored extremely well, was very well received really over the next number of weeks, and to have a continued support pattern, we feel highly confident about our business in Germany and what the trends are going to be seeing coming out of Germany.

Speaker #3: The second market that we saw some softness in was the U.K. And in the U.K., we mentioned before that it was a more promotional environment than what we're used to.

Tarang Amin: The second market that we saw some softness in was the UK. And in the UK, we mentioned before that it was a more promotional environment than what we're used to. Some of our competitors, actually pretty disciplined competitors, even came out with some of their innovation at three for two, which we've not seen before. So pretty aggressive levels of promotion.

Speaker #3: Some of our competitors, actually pretty disciplined competitors, even came out with some of their innovation at three-for-two, which we had not seen before.

Speaker #3: So, pretty aggressive levels of promotion. And I think that was in response to the U.K. consumer backdrop, which was weak across a number of different categories.

Tarang Amin: And I think that was in response to the UK consumer backdrop, which was weak across a number of different categories. So we certainly face the effect of a bigger promotional environment since we do not promote. But there are two things coming off from a UK standpoint that gives us confidence. First, a number of our competitors have announced that they're gonna be taking pricing as part of the spring resets. Most of our competitors take pricing kind of in the spring or along with resets, and we're different than our competitors. Historically, if you look at us, the vast majority of our growth has been through unit growth. Most of our competitors, the way they grow, is through price increases and innovation makes to take up their AUR. And so when those prices go up, we do believe our value proposition will be better.

Speaker #3: So, we certainly faced the effect of a bigger promotional environment since we do not promote. But there are two things coming on from the U.K.

Speaker #3: Standpoint that gives us confidence. First, a number of our competitors have announced that they're going to be taking pricing as part of the spring resets. Most of our competitors take pricing kind of in the spring or along with resets.

Tarang Amin: Most of our competitors take pricing kind of in the spring or along with resets, and we're different than our competitors. Historically, if you look at us, the vast majority of our growth has been through unit growth. Most of our competitors, the way they grow, is through price increases and innovation makes to take up their AUR. And so when those prices go up, we do believe our value proposition will be better.

Speaker #3: And we're different than our competitors. Historically, if you look at us, the vast majority of our growth has been through unit growth. Most of our competitors, the way they grow is through price increases, and innovation makes you take up their AUR.

Speaker #3: And so, when those prices go up, we do believe our value proposition will be better. But we're not just waiting for our competitors to raise pricing.

Tarang Amin: But we're not just waiting for our competitors to raise pricing. The second thing we're doing is we're actually putting on more marketing support in that market. It's been almost, gosh, two years since we aired our last awareness building campaign. You know, if I step back, I think we were a little bit too enamored with just opening up new markets, and we'll continue to see new markets because it does take a while to build up critical mass in a country. But having that better balance, similar to what we've seen in the US, really in the early days of both Canada and the UK, you know, I'm very proud that our sales CAGR internationally is 55% over the last few years. It was just 44%, actually, even in Q3 that we just announced.

Speaker #3: The second thing we're doing is we're actually putting on more marketing support in that market. It's been almost, gosh, two years since we aired our last awareness-building campaign.

Speaker #3: You know, if I step back, I think we were a little bit too enamored with just opening up new markets, and we'll continue to see new markets, because it does take a while to build up critical mass in a country.

Speaker #3: But having that better balance, similar to what we've seen in the U.S., really in the early days of both Canada and the U.K.—you know, I'm very proud that our sales CAGR internationally is 55% over the last few years.

Tarang Amin: But having that better balance, similar to what we've seen in the US, really in the early days of both Canada and the UK, you know, I'm very proud that our sales CAGR internationally is 55% over the last few years. It was just 44%, actually, even in Q3 that we just announced.

Speaker #3: It was just 44%, actually, even in Q3 that we just announced. But the vast majority of that growth has actually come from our original international markets: Canada, the U.K.

Tarang Amin: But the vast majority of that growth has actually come from our original international markets, Canada, UK. And so putting greater focus on our biggest markets while we continue to seek new markets, we believe is the way forward, forward. The last thing we've done is upgraded the leadership in our EMEA region. We have a GM that we've placed in there a few months ago, who has extremely great experience from Procter & Gamble, Johnson & Johnson, other brands, and a real, real good overview of both the EMEA market as well as kind of, as I said, key leadership hires within that. So that's a combination between kind of new market entries to build up our presence, greater marketing support, and the team gives us confidence, 'cause in all the other markets, we're seeing pretty strong growth.

Speaker #3: And so, putting greater focus on our biggest markets, while we continue to see new markets, we believe is the way forth. The last thing we've done is we've upgraded the leadership in our EMEA region.

Speaker #3: We have a GM that we've placed in there a few months ago, who has extremely great experience from Procter & Gamble, Johnson & Johnson, and other brands.

Speaker #3: And a real good overview of both the EMEA market, as well as, kind of, as I said, key leadership hires within that. So that's a combination between kind of new market entries to build up our presence, greater marketing support, and the team.

Tarang Amin: So that's a combination between kind of new market entries to build up our presence, greater marketing support, and the team gives us confidence, 'cause in all the other markets, we're seeing pretty strong growth. So once we do that, I think you're gonna see, even on an organic basis, you've seen it overall, in terms of strong growth, I think you'll see stronger growth on an organic basis as well.

Speaker #3: It gives us confidence because in all the other markets, we're seeing pretty strong growth. So once we do that, I think you're going to see—even on an organic basis—you've seen it overall in terms of strong growth.

Tarang Amin: So once we do that, I think you're gonna see, even on an organic basis, you've seen it overall, in terms of strong growth, I think you'll see stronger growth on an organic basis as well.

Speaker #3: I think you'll see stronger growth on an organic basis as well.

Speaker #2: That's helpful. And it's helpful to have kind of a, you know, a play-by-play on the changes in how you're thinking about those markets, and you think about reaccelerating and kind of taking that e.l.f.

Sydney Wagner: That's helpful. And it's helpful to have kind of a, you know, a play-by-play or the changes in how you're thinking about those markets, and you think about reaccelerating and kind of taking that e.l.f. playbook internationally. So I guess stepping back from the quarterly noise, can you share how retailers are generally positioned from an inventory standpoint in the US and internationally? Are there any shifts in how they're managing weeks of supply on shelf availability or inventory productivity? That would be helpful for us to understand as we think about near-term shipments, beyond kind of what you've already broken out about, you know, pipeline fill impacts.

Sydney Wogen: That's helpful. And it's helpful to have kind of a, you know, a play-by-play or the changes in how you're thinking about those markets, and you think about reaccelerating and kind of taking that e.l.f. playbook internationally. So I guess stepping back from the quarterly noise, can you share how retailers are generally positioned from an inventory standpoint in the US and internationally?

Speaker #2: Playbook internationally. So I guess, stepping back from the quarterly noise, can you share how retailers are generally positioned from an inventory standpoint in the U.S.?

Speaker #2: and internationally? Are there any shifts in how they're managing weeks of supply on shelf availability or inventory productivity that would be helpful for us to understand as we think about near-term shipments beyond kind of what you've already broken out about, you know, pipeline fill impacts?

Sydney Wogen: Are there any shifts in how they're managing weeks of supply on shelf availability or inventory productivity? That would be helpful for us to understand as we think about near-term shipments, beyond kind of what you've already broken out about, you know, pipeline fill impacts.

Speaker #3: No, there's no nuance by retailer seeing anything differently there. You know, if I just take a step back, I think because this is similar to kind of the quarterly question and the pipeline, and when are we going to see shipments and consumption realign.

Mandy Fields: No, there's no nuance by retailer or seeing anything differently there. You know, if I just take a step back, I think because this is similar to kind of the quarterly question and the pipeline and when are we gonna see shipments and consumption realign. I do have an appreciation for that because I think, you know, over the last six years or so, the math has been very simple. You know, the Street has visibility to Nielsen data, international has been incremental to that, and so everything has been, you know, additive as we go through. As we have seen, you know, kind of our organic sales now have to be broken out, and now we have this pipeline kind of that we're cycling through. It's become a little bit more complex.

Speaker #3: And I do have an appreciation for that, because I think, you know, over the last six years or so, the math has been very simple.

Mandy Fields: You know, the Street has visibility to Nielsen data, international has been incremental to that, and so everything has been, you know, additive as we go through. As we have seen, you know, kind of our organic sales now have to be broken out, and now we have this pipeline kind of that we're cycling through. It's become a little bit more complex.

Speaker #3: You know, the street has visibility to Nielsen data. International has been incremental to that, and so everything has been additive as we go through.

Speaker #3: As we have seen, you know, kind of our organic sales now have to be broken out, and now we have this pipeline, kind of, that we're cycling through.

Speaker #3: It's become a little bit more complex. And so, again, I just really want to anchor folks back to what we're delivering on the year overall.

Mandy Fields: And so again, I just really want to anchor folks back to what we're delivering on the year overall. And I'm not trying to, you know, avoid the question on the retailers piece. There's nothing, no change with our retailers from an inventory standpoint, but I do want to make sure that people understand kind of what we've tried to provide. And really, that is that global consumption that Tarang just walked you through and what's going on there as we cycle this pipeline impact. And like I said, every year there's gonna be something in the base. It just all depends on what you have to cycle that volume, right? And as we get into fiscal 2027, we'll try to help give color on if there are things out there that we're gonna have to cycle through that are of this magnitude.

Speaker #3: And I'm not trying to, you know, avoid the question on the retailer piece. There's nothing—no change—with our retailers from an inventory standpoint.

Speaker #3: But I do want to make sure that people understand kind of what we've tried to provide. And really, that is that global consumption that Tarang just walked you through, and what's going on there.

Mandy Fields: And really, that is that global consumption that Tarang just walked you through and what's going on there as we cycle this pipeline impact. And like I said, every year there's gonna be something in the base. It just all depends on what you have to cycle that volume, right? And as we get into fiscal 2027, we'll try to help give color on if there are things out there that we're gonna have to cycle through that are of this magnitude.

Speaker #3: As we cycle this pipeline impact. And like I said, every year there's going to be something in the base. It just all depends on what you have to cycle that volume, right?

Speaker #3: And as we get into fiscal 27, we'll try to help give color on if there are things out there that we're going to have cycle that we're going to have to cycle through that are of this magnitude.

Speaker #3: But I will tell you, Dollar General going into those doors—11,000 doors at one time—that was a big pipeline that we had to cycle through.

Mandy Fields: But I will tell you, Dollar General, going into those doors, 11,000 doors at one time, that was a big pipeline that we had to cycle through. And so that's why you're, you're hearing us talk about that. But really, there's always something then in the base, and it just depends on what you have as you go through to cycle over that volume.

Speaker #3: And so that's why you're hearing us talk about that. But really, there's always something then in the base. And it just depends on what you have as you go through to cycle over that volume.

Speaker #4: And then, you know, the only thing I'd build on that is we're different than a lot of our competitors. I know in just reading other reports and other companies that they often talk about, you know, retailers either pulling back on inventory or having more inventory than they need.

Tarang Amin: Then, you know, the only thing I'd build on that is we're different than a lot of our competitors. I know in just reading other reports and other companies, that they often talk about, you know, retailers either pulling back on inventory or having more inventory than they need. We've been fairly consistent there over a very long period of time, and part of the reason why is that we move so much faster than the rest of the category. If you look at our unit movement, it's way faster. So it's not even possible, really, for a retailer. Let's say a retailer went and was trying to cut down on their overall department inventory, and there are periods where a retailer, their open-to-buy, gets closed for a while, and they have to actually tighten up.

Speaker #4: We've been fairly consistent there over a very long period of time, and part of the reason why is that we move so much faster than the rest of the category.

Speaker #4: If you look at our unit movement, it's way faster. So it's not even possible, really, for a retailer—let's say a retailer went and was trying to cut down on their overall department inventory.

Tarang Amin: If you look at our unit movement, it's way faster. So it's not even possible, really, for a retailer. Let's say a retailer went and was trying to cut down on their overall department inventory, and there are periods where a retailer, their open-to-buy, gets closed for a while, and they have to actually tighten up.

Speaker #4: And there are periods where a retailer, their open to buy, gets closed for a while and they have to actually tighten up. They end up having to replan even faster on e.l.f.

Tarang Amin: They end up having to replan even faster on e.l.f., because we quickly run out of shelf. Even just the way we replenish, if you take a look at kind of Walmart, we're replenishing twice a week to every one of their doors. So it's not like they have a bunch of holding inventory in the back room or somewhere else that they're holding. We're sending directly through their DCs to their stores. Target is a full case customer. Again, their inventory levels have been fairly consistent over a long period of time, as have our other customers. So there isn't any... And I think as people are trying to navigate through, when do shipments equal consumption? They will equal over time.

Speaker #4: Because we quickly run out of shelf. And even just the way we replenish, if you take a look at kind of Walmart, we're replenishing twice a week to every one of their doors.

Speaker #4: So it's not like they have a bunch of holding inventory in the back room or somewhere else that they're holding. We're sending directly through their DCs to their stores. Target is a full case customer.

Tarang Amin: Target is a full case customer. Again, their inventory levels have been fairly consistent over a long period of time, as have our other customers. So there isn't any... And I think as people are trying to navigate through, when do shipments equal consumption? They will equal over time.

Speaker #4: Again, their inventory levels have been fairly consistent over a long period of time, as have our other customers. So there isn't any, and I think as people are trying to navigate through when do shipments equal consumption, they will equal over time.

Speaker #4: There isn't another big factor out there other than the pipeline that Mandy mentioned. Not only on Dollar General for this quarter, but I also remind people if you go into a Target right now, you have at least a 20-foot run of e.l.f.

Tarang Amin: There isn't another big factor out there other than the pipeline that Mandy mentioned, not only in Dollar General for this quarter, but I also remind people, if you go into a Target right now, you have at least a 20-foot run of e.l.f., and that was a 50% space increase. So it was a massive increase, and it also shows Target's bullishness on e.l.f. for the future, as not only what we've delivered. And I think in the last, just in the last 4 weeks, I saw, I think we built another 100 basis points of share at Target. We now have a 22.8% share at Target. So it just shows kind of the power of both the space as well as what e.l.f. has been able to do.

Speaker #4: And that was a 50% space increase. So it was a massive increase. And it also shows Target's bullishness on e.l.f. for the future, as not only what we've delivered.

Speaker #4: And I think in the last—I guess in the last four weeks—I saw, I think we built another 100 basis points of share at Target.

Tarang Amin: And I think in the last, just in the last 4 weeks, I saw, I think we built another 100 basis points of share at Target. We now have a 22.8% share at Target. So it just shows kind of the power of both the space as well as what e.l.f. has been able to do.

Speaker #4: We now have a 22.8% share at Target. So it just shows kind of the power of both the space as well as what e.l.f.

Speaker #4: has been able to do.

Speaker #2: Yeah, that's really helpful to kind of have that understanding of maybe why we're hearing a little different messaging from you guys. Because, to your point, all of the beauty companies are calling this out.

Sydney Wagner: Yeah, that's really helpful to kinda have that, that understanding of maybe why we're hearing a little different messaging from you guys, because to your point, all the beauty companies are calling this out, and certainly, you know, we, there have been challenges in the drug channel, especially just with, you know, kind of channel shift pressure. So it's helpful to have that framework of maybe why we're hearing a little different messaging. So I, I really appreciate that, that color.

Sydney Wogen: Yeah, that's really helpful to kinda have that, that understanding of maybe why we're hearing a little different messaging from you guys, because to your point, all the beauty companies are calling this out, and certainly, you know, we, there have been challenges in the drug channel, especially just with, you know, kind of channel shift pressure. So it's helpful to have that framework of maybe why we're hearing a little different messaging. So I, I really appreciate that, that color.

Speaker #2: And certainly, you know, there have been challenges in the drug channel, especially just with, you know, kind of channel shift pressure. So it's helpful to have that framework of maybe why we're hearing a little different messaging.

Speaker #2: So I really appreciate that.

Tarang Amin: Even on the last one, Sydney, even on drugstores. We've chosen not to be in all drugstores, right? We've targeted the higher volume stores. There's a massive falloff between high volume stores and low volume stores in drug. And so we've consciously, as we've done our space expansion in drug, both at Walgreens and CVS, where we went from endcap presentations to full inline presentations, you know, anywhere from 6ft and beyond, we've really targeted those stores that are the best stores. So often, we don't have the same impact as others who would be so widely distributed within drug, and the closures that would have there. So again, from a customer standpoint, I like the footprint we have. I like the approach that we've used with customers.

Speaker #4: And even on your last one, Sydney, even on drug, we've chosen not to be in all drug doors, right? We've targeted the higher-volume doors.

Speaker #4: There's a massive falloff between high-volume doors and low-volume doors in drug. And so we've consciously, as we've done our space expansion in drug, both at Walgreens and CVS, where we went from endcap presentations to full in-line presentations—you know, anywhere from six feet.

Speaker #4: And beyond, we've really targeted those stores that are the best stores. So often, we don't have the same impact as others who would be so widely distributed within drug, and the closures that would have there.

Tarang Amin: So often, we don't have the same impact as others who would be so widely distributed within drug, and the closures that would have there. So again, from a customer standpoint, I like the footprint we have. I like the approach that we've used with customers.

Speaker #4: So again, from a customer standpoint, I like the footprint we have. I like the approach that we've used with customers. It really gives us a strong base, particularly when you look at kind of where we are with Ulta, our top three customers: Target, Walmart, Ulta, and Amazon.

Tarang Amin: It really gives us a strong base, particularly when you look at kind of where we are with Ulta, our top three customers, Target, Walmart, Ulta, and Amazon. Amazon has continued to have very strong growth for us and continue to be one of their lead brands that for beauty as they go forward.

Speaker #4: And Amazon is continuing to have very strong growth for us and continues to be one of their lead brands for beauty as they go forward.

Sydney Wagner: That's great. Mandy, you kind of started to, I think, get close to my next question, which is on kind of the volume recovery. So as we approach the point where pricing is fully lapped, what gives you confidence around volume reaccelerating, and what early indicators are you going to be watching most closely?

Sydney Wogen: That's great. Mandy, you kind of started to, I think, get close to my next question, which is on kind of the volume recovery. So as we approach the point where pricing is fully lapped, what gives you confidence around volume reaccelerating, and what early indicators are you going to be watching most closely?

Speaker #2: That's great. Mandy, you kind of started to, I think, get close to my next question, which is on kind of the volume recovery. So, as we approach the point where pricing is fully lapped, what gives you confidence around volume, three, accelerating?

Speaker #2: And what early indicators are you going to be watching most closely?

Speaker #3: Yeah, so if you think about our growth over this last seven years, it really has been driven by volume, in fact. We're one of the only brands that has had this volume-led growth.

Mandy Fields: Yeah. So if you think about our growth over this last seven years, it really has been driven by volume. In fact, we're one of the only brands that has had this volume-led growth, and so that's certainly our expectation, that we get back to volume driving our growth. And so what we'll be watching for, we've talked about this, is spring innovation as that launches, how is that performing? We will continue to watch for as we get to, you know, August, that's where we had the price increase, we should start to see volumes start to recover, you know, if, if not after that, certainly a little bit ahead of that as we go through. And so that's what we'll be watching for. And we have confidence in that.

Speaker #3: And so that's certainly our expectation—that we get back to volume driving our growth. And so what we'll be watching for, we've talked about this, is spring innovation as that launches.

Speaker #3: How is that performing? We will continue to watch for, as we get to, you know, August—that's where we had the price increase. We should start to see volumes start to recover.

Mandy Fields: We will continue to watch for as we get to, you know, August, that's where we had the price increase, we should start to see volumes start to recover, you know, if, if not after that, certainly a little bit ahead of that as we go through. And so that's what we'll be watching for. And we have confidence in that. Again, 28 quarters really have primarily been driven by volume, and so that's what gives us confidence in that.

Speaker #3: You know, if not after that, certainly a little bit ahead of that as we go through. And so that's what we'll be watching for.

Speaker #3: And we have confidence in that. Again, 28 quarters really have primarily been driven by volume. And so that's what gives us confidence in that.

Mandy Fields: Again, 28 quarters really have primarily been driven by volume, and so that's what gives us confidence in that.

Speaker #2: Great. So then, could you outline a few specific actions that you are prioritizing around to support the core e.l.f. U.S. business over the next couple of quarters?

Sydney Wagner: Great. So could you outline a few specific actions that you are prioritizing around to support the core e.l.f. US business over the next couple of quarters, you know, when we think about that reacceleration?

Sydney Wogen: Great. So could you outline a few specific actions that you are prioritizing around to support the core e.l.f. US business over the next couple of quarters, you know, when we think about that reacceleration?

Speaker #2: You know, when we think about that reacceleration.

Speaker #4: Yeah, I mean, our business is really simple. If you take a look at it, there are three main drivers. Our fundamental value proposition—even after our 15% price increase—75% of our items are $10 or less.

Tarang Amin: Yeah. I mean, our business is really simple. If you take a look at it, there are three main drivers. Our fundamental value proposition, even after our 15% price increase, 75% of our items are less than $10 or less. We have, you know, typically, as I mentioned, a lot of our competitors will take pricing kind of in the spring cycle, so we'll see after planograms where that shakes out. But we're highly confident of our value proposition, because that's been the thing that's really driven us for the last 22 years. The second thing is our powerhouse innovation. The great thing about our innovation is there's a consistent model year in, year out, and we just recently went back and kind of analyzed the contribution of innovation to our sales each year, and it's fairly consistent.

Speaker #4: We have, you know, typically, as I mentioned, a lot of our competitors will take pricing kind of in the spring cycle. So we'll see after planner grants where that shakes up.

Speaker #4: But we're highly confident of our value proposition because that's been the thing that's really driven us for the last 22 years. The second thing is our powerhouse innovation.

Tarang Amin: But we're highly confident of our value proposition, because that's been the thing that's really driven us for the last 22 years. The second thing is our powerhouse innovation. The great thing about our innovation is there's a consistent model year in, year out, and we just recently went back and kind of analyzed the contribution of innovation to our sales each year, and it's fairly consistent.

Speaker #4: The great thing about our innovation is there's a consistent model, year in, year out. And we just recently went back and kind of analyzed the contribution of innovation to our sales each year.

Speaker #4: And it's fairly consistent. We had one anomalous year in 2024 with our lip oil launch, which is a very—I mean, it was multiples higher than any other launch we've had.

Tarang Amin: We had one anomalous year in 2024 with our Lip Oil launch, which is a very - I mean, it was, it was multiples higher than any other launch we've had, and we certainly faced the impact of that, lapping that in early 2025. But other than that, we have this consistency from an innovation standpoint, and that's one of the key drivers of our business. I feel great about the spring innovation we have. As Mandy said, we'll get a much better read of that as they reach planograms over the next few weeks as part of spring resets. And the third is our disruptive marketing engine. And if you look at our marketing engine, I mean, it's firing on all cylinders right now. The spot we just did for the big game, I think, is up to 11 billion views.

Speaker #4: And we certainly faced the impact of that lapping in early 2025. But other than that, we have this consistency from an innovation standpoint.

Speaker #4: And that's one of the key drivers of our business. I feel great about the spring innovation we have, as Mandy said. We'll get a much better read of that as they reach planner grants over the next few weeks as part of spring resets.

Tarang Amin: I feel great about the spring innovation we have. As Mandy said, we'll get a much better read of that as they reach planograms over the next few weeks as part of spring resets. And the third is our disruptive marketing engine. And if you look at our marketing engine, I mean, it's firing on all cylinders right now. The spot we just did for the big game, I think, is up to 11 billion views.

Speaker #4: And the third is our disruptive marketing engine. And if you look at our marketing engine, I mean, it's firing on all cylinders right now.

Speaker #4: The spot we just did for the big game, I think, is up to 11 billion views. The amount of social commentary, everything else that we've done.

Tarang Amin: The amount of social commentary, everything else that we've done, and we're sustaining that spot throughout kind of the rest of the quarter. I think the reach is gonna reach almost 300 million people. The collaborations we continue to do, the one we just did with Liquid Death, as well as with H&M in fragrances, which is a global collaboration, as well as additional campaigns that you're gonna see. Marketing has been a key driver of our business, our unique ability to engage and entertain consumers in a way that you've seen consistent share gains. So those three things are the main actions that I would say are really ahead of us. And of course, making sure we execute with excellence of spring resets.

Speaker #4: And we're sustaining that spot throughout kind of the rest of the quarter. I think the reach is going to reach almost 300 million people.

Speaker #4: The collaborations we continue to do, the one we just did with Liquid Death, as well as with H&M in fragrances—which was a global collaboration.

Speaker #4: As well as additional campaigns that you're going to see, marketing has been a key driver of our business—our unique ability to engage and entertain consumers in a way that you've seen consistent share gains.

Tarang Amin: Marketing has been a key driver of our business, our unique ability to engage and entertain consumers in a way that you've seen consistent share gains. So those three things are the main actions that I would say are really ahead of us. And of course, making sure we execute with excellence of spring resets.

Speaker #4: So those three things are the main actions that I would say are really ahead of us. And, of course, making sure we execute with excellence the spring resets.

Tarang Amin: The status of those resets for everyone is Target is the last to go this year. So Target is actually starting next week in terms of their process on resets. Walmart and Ulta are in progress. They were a bit delayed by the weather issues, but they're on track in terms of resetting, and then others will be. So I'd say over the next few weeks, you'll start to see the benefits of those resets. I think in the prior few weeks, you saw the typical trough we have when you start turning off items, because that's also where we're unique, is the productivity-led models. As much as people love space, we've consistently grown by looking at our dollar per linear foot productivity.

Speaker #4: And the status of those resets for everyone is: Target is a loss to go this year. So, Target is actually starting next week in terms of their process on resets.

Speaker #4: Walmart and Ulta are in progress. They were a bit delayed by the weather issues, but they're on track in terms of resetting. And then others will be.

Speaker #4: So I'd say over the next few weeks, you'll start to see the benefits of those resets. I think in the prior few weeks, you saw the typical trough we have when you start turning off items, because that's also where we're unique.

Tarang Amin: So I'd say over the next few weeks, you'll start to see the benefits of those resets. I think in the prior few weeks, you saw the typical trough we have when you start turning off items, because that's also where we're unique, is the productivity-led models. As much as people love space, we've consistently grown by looking at our dollar per linear foot productivity.

Speaker #4: It's the productivity-led models. As much as people love space, we've consistently grown by looking at our dollar per linear foot productivity. And the way—the actions we take to be able to aid that—is we take the inside self of our digital channels and proactively change out as much as 20% of the assortment each year.

Tarang Amin: The way the actions we take to be able to aid that is we take the insights off of our digital channels and proactively change out as much as 20% of the assortment each year. So you'll have that period really in kind of December, January, beginning, kind of sometimes February, depending on what planograms are, where you've turned off certain items to make sure that you're not left over with what you're taking off while the new ones come on. So I think the next few weeks will give you a much better indication in terms of the overall consumption of things.

Speaker #4: So you'll have that period really in kind of December, January, beginning kind of—sometimes February, depending on planner grants—where you've turned off certain items to make sure that you're not left over with what you're taking off while the new ones come on.

Speaker #4: So, I think the next few weeks will give you a much better indication in terms of the overall consumption on things.

Speaker #2: Yeah, so is that something we should be cognizant of in maybe what we're seeing, you know, in terms of the kind of current scanner data that's coming out?

Sydney Wagner: Yeah. So is that something we should be cognizant of in maybe what we're seeing, you know, in terms of the kind of current scanner data that's coming out, is some of those... The weather way you're going?

Sydney Wogen: Yeah. So is that something we should be cognizant of in maybe what we're seeing, you know, in terms of the kind of current scanner data that's coming out, is some of those... The weather way you're going?

Speaker #2: Is some of those the weather-related delays?

Speaker #4: Absolutely. I mean, this last week was a week. Yeah. The last week was a week from a scanner data standpoint because we've got a couple of customers delayed, and one that hasn't even started.

Tarang Amin: Absolutely. I mean, this last week was a week.

Sydney Wagner: Okay, that's helpful.

Sydney Wogen: Okay, that's helpful.

Tarang Amin: Yeah, the last week was a week from a scanner data standpoint, 'cause we've got a couple customers delayed and one that hasn't even started. So if you went in and did your store checks, you'd see a number of items you've already turned off. We're waiting for, like, the new ones to come on for the reset plan, but then it bounces around. So that's a little bit why, you know, to Mandy's point, we're really focused on both the annual guidance and longer views. I know it's a, it's a favorite hobby for people to pay attention and stay enamored with the weekly, some people the 48-hour data. It's, it's a little silly, the more I think about it, just given how much it's gonna bounce around based on what's going on in the period before and where you are in the planogram cycle.

Speaker #4: So if you went in and did your store checks, you'd see a number of items you've already turned off, waiting for the new ones to come on before the reset plan.

Speaker #4: But then it bounces around. So that's a little bit why, you know, to Mandy's point, we're really focused on both the annual guidance and longer views.

Speaker #4: I know it's a favorite hobby for people to pay attention and stay enamored with the weekly. Some people get 48-hour data. It's a little silly.

Tarang Amin: I know it's a, it's a favorite hobby for people to pay attention and stay enamored with the weekly, some people the 48-hour data. It's, it's a little silly, the more I think about it, just given how much it's gonna bounce around based on what's going on in the period before and where you are in the planogram cycle. As I mentioned, this past week, last week was weak, this week is strong, and you're gonna, you know, I'd say just keep watching it as time goes on, and it's really the trend overall that you want to pay attention to.

Speaker #4: The more I think about it, just given how much it's going to bounce around based on what's going on in the period before, and where you are in the planner grant cycle.

Tarang Amin: As I mentioned, this past week, last week was weak, this week is strong, and you're gonna, you know, I'd say just keep watching it as time goes on, and it's really the trend overall that you want to pay attention to.

Speaker #4: As I mentioned, this past week—past week, last week—was weak. This week is strong. And you're going to, you know, I'd say just keep watching as time goes on.

Speaker #4: And it's really the trend overall that you want to pay attention to.

Speaker #2: Yeah, yeah. No, I think it's helpful to kind of have the framework of, you know, what we're seeing—maybe why. But yeah, you're certainly very popular, with that being tracked closely.

Sydney Wagner: Yeah. Yeah. No, I think it's helpful to kind of have the framework of, you know, what we're seeing, maybe why, but you're, yeah, you're certainly very popular with that being tracked closely. As spring resets do begin to roll out, you know, what are you observing in terms of early reception, both from consumers, retail partners, you know, traction of innovation?

Sydney Wogen: Yeah. Yeah. No, I think it's helpful to kind of have the framework of, you know, what we're seeing, maybe why, but you're, yeah, you're certainly very popular with that being tracked closely. As spring resets do begin to roll out, you know, what are you observing in terms of early reception, both from consumers, retail partners, you know, traction of innovation?

Speaker #2: As spring resets do begin to roll out, you know, what are you observing in terms of early reception, both from consumers, retail partners, you know, traction of innovation?

Speaker #4: Yeah, so we're excited about the spring resets in a few different dimensions. So let me go customer by customer. Target, last year, we went to a 20-foot set.

Tarang Amin: Yeah. So we're excited about the spring resets in a few different dimensions. So let me go customer by customer. Target, last year, we went to a 20-foot set. It was the biggest space gain I think we've ever had there, reflects our leadership position in our category, and even after that space gain, we still are not at fair share in terms of total space, and that's okay with us. We want to make sure we have had the most productive space they have, and we want to be able to continue that. I'm excited 'cause the spring gives us our first big opportunity. We had a small opportunity in the fall, but the spring gives us our first big opportunity to refresh that space. And it always takes us a few cycles to optimize that space.

Speaker #4: It was the biggest space gain I think we've ever had there. Reflects our leadership position in that category. And even after that space gain, we still are not at fair share in terms of total space.

Speaker #4: And that's okay with us. We want to make sure we, and we have had the most productive space they have. And we want to be able to continue that.

Tarang Amin: We want to make sure we have had the most productive space they have, and we want to be able to continue that. I'm excited 'cause the spring gives us our first big opportunity. We had a small opportunity in the fall, but the spring gives us our first big opportunity to refresh that space. And it always takes us a few cycles to optimize that space.

Speaker #4: I'm excited because the spring gives us our first big opportunity. We had a small opportunity in the fall, but the spring gives us our first big opportunity to refresh that space.

Speaker #4: And it always takes us a few cycles to optimize that space. I'm particularly excited about what we have coming at Target and just how beautiful that set looks.

Tarang Amin: So I'm particularly excited about what we have coming at Target and just how beautiful that set looks, as well as the other points of disruption that they have. If I go to Ulta Beauty. Ulta Beauty, we picked up additional space. You're gonna see that as these planograms. And beyond the incremental space, it's just a much better unit to shop. But I felt our old 12-foot sets were just jam-packed. We had so much product on that it was hard for me at least, to kind of navigate and kind of shop that, even compared to kind of the 8. So having the larger footprint not only will allow us to put more variation on those shelves, but just much better visual merchandise.

Speaker #4: As well as the other points of disruption that they have. If I go to Ulta Beauty—Ulta Beauty, we picked up additional space. You're going to see that as these planner grants.

Speaker #4: And beyond the incremental space, it's just a much better unit to shop. Like, I felt our old 12-foot sets were just jam-packed. We had so much product on that.

Tarang Amin: But I felt our old 12-foot sets were just jam-packed. We had so much product on that it was hard for me at least, to kind of navigate and kind of shop that, even compared to kind of the 8. So having the larger footprint not only will allow us to put more variation on those shelves, but just much better visual merchandise.

Speaker #4: It was hard for me, at least, to kind of navigate and kind of shop that—even compared to kind of the 8. So having the larger footprint not only will allow us to put more of our innovation on those shelves, but just much better visual merchandise.

Speaker #4: So if we’re really good about what we can see in terms of kind of coming up in Ulta. And then Walmart. Walmart, you know, I’ve mentioned before, we have been taking up space at Walmart.

Tarang Amin: So I feel really good about what we can see in terms of kind of coming up in Ulta. And then Walmart. Walmart, you know, I've mentioned before, we have been taking up space at Walmart. They continue to reward the brand. We're the most important brand if you think of the alignment that we have strategically in terms of the best of beauty made accessible. It's a perfect fit with Walmart. They see elf as a key growth brand, and they've been testing what they call a highest vision set. So it's part of their reinvention of Walmart Beauty. They have big plans for beauty as a category, you know, even eventually moving it towards the front of their stores and kind of prime location, thinks more similar to Target than their previous locations.

Speaker #4: They continue to reward the brand. We're the most important brand. If you think of the alignment that we have strategically, in terms of the best of beauty made accessible.

Speaker #4: It's a perfect fit with Walmart. They see e.l.f. as a key growth brand. And they've been testing what they call a 'highest vision set.'

Tarang Amin: It's a perfect fit with Walmart. They see elf as a key growth brand, and they've been testing what they call a highest vision set. So it's part of their reinvention of Walmart Beauty. They have big plans for beauty as a category, you know, even eventually moving it towards the front of their stores and kind of prime location, thinks more similar to Target than their previous locations.

Speaker #4: So it's part of their reinvention of Walmart Beauty. They have big plans for beauty as a category, you know, even eventually moving it towards the front of their stores and kind of a prime location.

Speaker #4: I think more similar to Target than their previous locations. But even in the absence of that, these highest vision sets that they've been testing on e.l.f. have tested really well.

Tarang Amin: But even in the absence of that, these highest vision sets that have been tested, I don't know if, tested really well. So they're gonna be sequentially rolling those out. We haven't given a timeline because I think they're still trying to figure out both when they touch stores. They have a pretty aggressive remodel plan, and as well as when they're touching kind of their department in a bigger way. So it feel really good. Like, I, I feel like we're still as much progress as we've made in Walmart. We're their number 2 brand, number 1 at Target, number 1 mass brand at Ulta, number 2 mass brand at Walmart, kind of coming from, I mean, it's number 5 a few years ago. We feel with the highest vision sets over time, we have the right for clear market leadership.

Speaker #4: So they're going to be sequentially rolling those out. We haven't given a timeline, because I think they're still trying to figure out both when they touch stores.

Speaker #4: They have a pretty aggressive remodel plan, and as well as when they're touching kind of their department in a bigger way. So if you're really good, like I feel like we're still, as much progress as we've made in Walmart, where they're the number two brand.

Tarang Amin: So it feel really good. Like, I, I feel like we're still as much progress as we've made in Walmart. We're their number 2 brand, number 1 at Target, number 1 mass brand at Ulta, number 2 mass brand at Walmart, kind of coming from, I mean, it's number 5 a few years ago. We feel with the highest vision sets over time, we have the right for clear market leadership.

Speaker #4: Number one at Target. Number one mass brand at Ulta. Number two mass brand at Walmart. Kind of coming from—I mean, it was number five a few years ago.

Speaker #4: We feel with the highest vision sets over time, we have the right for clear market leadership. And so, as much progress as we had, I feel even more excited about what we've got coming over the next few years there.

Tarang Amin: And so, as much progress as we had, I feel even more excited about what we got coming over the next few years there. So that just gives you a little bit of a picture of kind of when you're hearing confidence in our voices. A lot of that confidence comes from what we know we have coming with our key customers.

Speaker #4: So that just gives you a little bit of a picture of kind of when you're hearing confidence in our voices. A lot of that confidence comes from what we know we have coming with our team, with our key customers.

Speaker #2: Yeah, I mean, so we're seeing both Target and Walmart really making meaningful investments in elevating their beauty offerings. So, I mean, from your vantage point, like, how does that shape the competitive landscape for you guys?

Sydney Wagner: Yeah. I mean, so we're seeing both Target and Walmart really making meaningful investments in elevating their beauty offerings. So I mean, from your vantage point, like, how does that shape the competitive landscape for you guys? Is this an environment where it's, you know, rising tide lifts all boats, or how do you feel you can uniquely outperform within that expanded beauty focus?

Sydney Wogen: Yeah. I mean, so we're seeing both Target and Walmart really making meaningful investments in elevating their beauty offerings. So I mean, from your vantage point, like, how does that shape the competitive landscape for you guys? Is this an environment where it's, you know, rising tide lifts all boats, or how do you feel you can uniquely outperform within that expanded beauty focus?

Speaker #2: Is this an environment where it's, you know, a rising tide lifts all boats? Or, how do you feel you can uniquely outperform within that expanded beauty focus?

Speaker #4: Yeah. Our track record has been outperformance regardless of what our retailer does. But especially when a retailer is more serious about beauty. You know, I'll go back a few years ago.

Tarang Amin: Yeah, our track record has been outperformance, regardless of what a retailer does, but especially when a retailer is more serious about beauty. You know, I'll go back a few years ago, a lot of people were worried when the Ulta within Target concept came, that, hey, would that take traffic and attention away from the main beauty aisle where e.l.f. is located? And what we found was that was not the case at all. In fact, early on, the doors that had Ulta in Target, we actually performed even better, and over time, we sustained that performance. Even though they weren't pleased with the overall Ulta in Target, and are gonna go in a different direction, we've been able to maintain our strong performance throughout. We also feel great about the moves Walmart's making.

Speaker #4: A lot of people were worried when the Ulta within Target concept came, that, hey, would that take traffic and attention away from the main beauty aisle where e.l.f. is located?

Speaker #4: And what we found was that was not the case at all. In fact, early on, the doors that had Ulta in Target, we actually performed even better.

Tarang Amin: And what we found was that was not the case at all. In fact, early on, the doors that had Ulta in Target, we actually performed even better, and over time, we sustained that performance. Even though they weren't pleased with the overall Ulta in Target, and are gonna go in a different direction, we've been able to maintain our strong performance throughout. We also feel great about the moves Walmart's making.

Speaker #4: And over time, we sustained that performance, even though they weren't pleased with the overall Ulta in Target.

Speaker #1: And are going to go in a different direction. We've been able to maintain our strong performance throughout. We also feel great about the moves Walmart's making.

Tarang Amin: You know, we feel anything that's good for beauty, that drives more consumers and more traffic, is another opportunity for people to see and discover our incredible value proposition. So we've always welcome when people invest more in beauty, that take beauty more seriously, and they, they, in their own data, they see when someone purchases beauty, what are their cross purchases in the box? And being able to get beauty in their basket results in a much higher overall basket. So there's good strategic reasons for them to prioritize beauty, given the importance it has really for self-expression and just how durable it is, regardless of economic cycle. And so, so we feel really good. No, we, we actually feel-... And I say not only our customers, but even our competitors.

Speaker #1: You know, we feel anything that's good for beauty that drives more consumers and more traffic is another opportunity for people to see and discover our incredible value proposition.

Speaker #1: So we've always welcomed when people invest more in beauty , that beauty more seriously . And they they notice it too . In their own data .

Speaker #1: They see when someone purchases beauty, what are their cross-purchases in the box, and being able to get beauty in their basket results in a much higher overall basket.

Tarang Amin: And being able to get beauty in their basket results in a much higher overall basket. So there's good strategic reasons for them to prioritize beauty, given the importance it has really for self-expression and just how durable it is, regardless of economic cycle. And so, so we feel really good. No, we, we actually feel-... And I say not only our customers, but even our competitors.

Speaker #1: So there's good strategic reasons for them to prioritize beauty. Given the importance it has, really, for self-expression and just how durable it is, regardless of economic cycle.

Speaker #1: And so, so we feel really good. We actually feel, and I say not only our customers, but even our competitors.

Speaker #1: There are times over the last seven years where I felt like we were the only ones rowing in the right direction in terms of our innovation, our marketing, our kind of what we were doing with retailers on shelf.

Tarang Amin: There are times over the last seven years where I felt like we were the only ones rolling in the right direction in terms of our innovation, our marketing, our kind of what we were doing with retailers on shelf. And so I welcome when there's good competitive activity, when people are bringing interest to the category, through meaningful innovation, through more marketing. You know, you've seen through our track record, even when people do that, we continue to build up share. And so it's a great thing all around. I'd rather have a much stronger, healthier category from us to take share than taking share from a weaker category. And so, as you can tell, quite bullish and quite excited about the category going forward.

Speaker #1: And so I welcome when there's good competitive activity , when people are bringing interest to the category , to meaningful innovation through more marketing , you know , you've seen through our track record , even when people do that , we continue to build up , share and and so it's a great thing all around .

Tarang Amin: You know, you've seen through our track record, even when people do that, we continue to build up share. And so it's a great thing all around. I'd rather have a much stronger, healthier category from us to take share than taking share from a weaker category. And so, as you can tell, quite bullish and quite excited about the category going forward.

Speaker #1: I'd rather have a much stronger, healthier category for us to take share from, than taking share from a weaker category. And so, as you can tell, I'm quite bullish and quite excited about the category going forward.

Speaker #2: Yeah , yeah , I was going to say it does sound like you're maybe incrementally more bullish on the category , and you know , some optimism around kind of seeing more strength from , you know , mass color , mass beauty , beauty in general is that fair to say ?

Sydney Wagner: Yeah. Yeah, I was gonna say, it does sound like you're maybe incrementally more bullish on the category and, you know, some optimism around kind of seeing more strength from, you know, mass color, mass beauty, beauty in general. Is that fair to say?

Sydney Wogen: Yeah. Yeah, I was gonna say, it does sound like you're maybe incrementally more bullish on the category and, you know, some optimism around kind of seeing more strength from, you know, mass color, mass beauty, beauty in general. Is that fair to say?

Speaker #1: No , absolutely . And it's not just color . I mean , color category in Q3 is up 4% , which is strong for the color mass category Mass skincare was up 8% .

Tarang Amin: No, absolutely. And it's not just color. I mean, color category in Q3 was up 4%, which is strong for the color mass category. Mass skincare was up 8%, so even stronger, and in both cases, we more than doubled where the category was in terms of our own consumption. So we feel great in terms of both our both competitive positioning, but we'd rather have that competitive position in a category that's strong.

Speaker #1: So, even stronger, and in both cases we more than doubled where the category was in terms of our own consumption. So we feel great in terms of both our competitive positioning.

Speaker #1: But we’d rather have that competitive positioning. A category that’s strong.

Sydney Wagner: Helpful. So I guess switching gears a little bit to tariffs and pricing, if we did see some sort of rollback in tariffs, would you adjust your pricing? And how should we think about the level of reinvestment versus flow through to the bottom line?

Sydney Wogen: Helpful. So I guess switching gears a little bit to tariffs and pricing, if we did see some sort of rollback in tariffs, would you adjust your pricing? And how should we think about the level of reinvestment versus flow through to the bottom line?

Speaker #2: So I guess, switching gears a little bit to tariffs and pricing, if we did see some sort of rollback in tariffs, would you adjust your pricing?

Speaker #2: And how should we think about the level of reinvestment versus flow-through to the bottom line?

Speaker #3: Yeah , we're certainly watching that . That situation on the tariffs . And I would say if you think about our pricing overall , 15% price increase and we're seeing kind of a mid-single digit unit decline behind that .

Mandy Fields: So we're certainly watching that situation on the IEPA tariffs. And I would say, you know, if you think about our pricing overall, 15% price increase, and we're seeing kind of a mid-single-digit unit decline behind that, it tells us that the pricing has been pretty well tolerated by our community. As you know, we communicate that in advance and really signal that. So I don't think that we would be in a position to, you know, do a mass rollback on prices, given what we're seeing from an elasticity standpoint. And I think it's to be determined if we were to get all, you know, a refund on that front, to be determined on how that might be invested. I think too early to really tell.

Speaker #3: It tells us that the pricing has been pretty well tolerated by our community. As you know, we communicate that in advance and really signal that.

Speaker #3: And so, I don't think that we would be in a position to, you know, do a mass rollback on prices, given what we're seeing from an elasticity standpoint.

Mandy Fields: So I don't think that we would be in a position to, you know, do a mass rollback on prices, given what we're seeing from an elasticity standpoint. And I think it's to be determined if we were to get all, you know, a refund on that front, to be determined on how that might be invested. I think too early to really tell.

Speaker #3: And I think it's to be determined , if we were to get a refund on that front , to be determined on how that might be invested , too early to really tell .

Speaker #1: And I think part of it is we're still in a dynamic and uncertain environment. So even if the Supreme Court ruled in favor and you got kind of a big portion of the tariffs rolled off, we'd have to see kind of what the next steps are and where we go through.

Tarang Amin: I think part of it is we're still in a dynamic and uncertain environment. So even if the Supreme Court ruled in favor and you got kind of a big portion of the tariffs rolled off, we'd have to see kind of what the next steps are and where we go through it. You know, I remind people what I'm most proud of with the team, and it somehow gets forgotten, is if you look at FY 2026, on average, we've been subject to 60% tariffs, and yet we've navigated that. We've actually grown our Adjusted EBITDA, we've grown our business overall, and we've been able to do that. So I've got confidence in the team in terms of being able to navigate it, but it's one of the reasons why we wouldn't do a knee-jerk reaction and take our prices down.

Speaker #1: And , you know , I remind people what I'm most proud of the team . And it somehow gets forgotten is if you look at FY 26 , on average , we've been subject to 60% tariffs .

Speaker #1: And yet we've navigated that. We've actually grown our adjusted EBITDA, we've grown our business overall, and we've been able to do that.

Tarang Amin: We've actually grown our Adjusted EBITDA, we've grown our business overall, and we've been able to do that. So I've got confidence in the team in terms of being able to navigate it, but it's one of the reasons why we wouldn't do a knee-jerk reaction and take our prices down.

Speaker #1: So, I've got confidence in the team in terms of being able to navigate it. But it's one of the reasons why we wouldn't do a knee-jerk reaction and take our prices down.

Speaker #1: I think we won the consumers have . We still have a phenomenal value relative to the rest of the category . We've seen good results from that price increase , and we also want to make sure that we're seeing what's coming on the horizon and how we how we manage that .

Tarang Amin: I think we won, the consumers have, we still have a phenomenal value relative to the rest of the category. We've seen good results from that price increase, and we also want to make sure that we're seeing what's coming on the horizon and how we manage that. We'll use the same balanced plan between pricing, continued supply chain diversification, and continued business diversification. So in total, international still is the fastest growing part of our business, as you look at kind of the overall year. And on international, we spend a lot of time talking about the organic e.l.f. sales. I think what's been missed by everyone is we now have. We used to have just one brand that we could take globally, e.l.f. Cosmetics. We now have four brands: e.l.f. Cosmetics, e.l.f. SKIN.

Speaker #1: And we'll use the same balance plan with between pricing , continued supply chain diversification and continued business diversification . So in total , international still is the fastest growing part of our business in as you look at kind of the overall year and on international , we spend a lot of time talking about the organic Elf sales .

Tarang Amin: So in total, international still is the fastest growing part of our business, as you look at kind of the overall year. And on international, we spend a lot of time talking about the organic e.l.f. sales. I think what's been missed by everyone is we now have. We used to have just one brand that we could take globally, e.l.f. Cosmetics. We now have four brands: e.l.f. Cosmetics, e.l.f. SKIN.

Speaker #1: I think what's been missed by everyone is we now have . We used to have just one brand that we could take globally.

Speaker #1: e.l.f. Cosmetics. We now have four brands: e.l.f. Cosmetics, e.l.f. Skin. We're filling out e.l.f. Skin in the countries that we've already launched.

Tarang Amin: We're filling out e.l.f. SKIN in the countries that we've already launched e.l.f. Cosmetics in. Naturium, we launched in Sephora, Australia. Pretty big expansion in Boots in the UK, has tremendous international appetite, potential on top of the Shoppers Drug Mart we had in Canada. And then rhode. rhode, this week, I can't help but give a shout-out to rhode, and the phenomenal growth it's seeing. Not only was it, at the Sephora UK launch, 5 times bigger than the other launch, but the pictures I've seen this week from Mecca, where we're launching in Mecca, in Australia and New Zealand, I mean, they're just mind-boggling. They look like they're photoshopped. I can't imagine that many people for a store opening at their flagship store at Melbourne, what's going on in terms of the entire market and what we're seeing.

Speaker #1: e.l.f. Cosmetics in Natrium. We launched in Sephora Australia. Pretty big expansion in Boots in the UK has tremendous international appetite potential.

Speaker #1: On top of the Shoppers Drug Mart that we had in Canada, and then rode Rode this week, I can't help but give a shout out to Rode and the phenomenal growth.

Speaker #1: It's seen . Not only was it the at the Sephora UK launch was five times bigger than the other launch , but the pictures I've seen this week from Mecca , where we're launching in Mecca in Australia and New Zealand , I mean , they're just mind boggling .

Tarang Amin: Not only was it, at the Sephora UK launch, 5 times bigger than the other launch, but the pictures I've seen this week from Mecca, where we're launching in Mecca, in Australia and New Zealand, I mean, they're just mind-boggling. They look like they're photoshopped. I can't imagine that many people for a store opening at their flagship store at Melbourne, what's going on in terms of the entire market and what we're seeing.

Speaker #1: They look like they're Photoshopped. I can't imagine that many people for a store opening at their flagship store in Melbourne. What's going on in terms of that entire market and what we're seeing?

Speaker #1: So we'll report at a later date . Obviously the sales , but that same level of exuberance that we've seen in North America and the UK , we're seeing in Australia , New Zealand and rode has massive global potential too .

Tarang Amin: So we'll report at a later date, obviously, the sales, but that same level of exuberance that we've seen in North America and the UK, we're seeing in Australia, New Zealand, and rhode has massive global potential too. So I think from an international and overall growth thesis standpoint, not only do you see strong continued consumption in the US, but we have four incredible growth brands for our international aspirations as well.

Speaker #1: So I think, from an international and overall growth standpoint, not only do we see strong continued consumption in the US, but we have four incredible growth brands for our international aspirations as well.

Speaker #2: That's great . Yeah , the I've seen the rode Instagram and it looks amazing . I wish I was at the some of these launches .

Sydney Wagner: That's great. Yeah, I've seen the rhode Instagram, and it looks amazing. I wish I was at the, some of these launches. So shifting to marketing, I would love to know more about how you think about ROI on marketing spend, and then can you talk a little bit more, a little bit more about the decision to have a Super Bowl ad this year, and then maybe any early reads on the reception of that ad?

Sydney Wogen: That's great. Yeah, I've seen the rhode Instagram, and it looks amazing. I wish I was at the, some of these launches. So shifting to marketing, I would love to know more about how you think about ROI on marketing spend, and then can you talk a little bit more, a little bit more about the decision to have a Super Bowl ad this year, and then maybe any early reads on the reception of that ad?

Speaker #2: So, shifting to marketing, I would love to know more about how you think about ROI on marketing spend. And then, can you talk a little bit more, a little bit more about the decision to have a Super Bowl ad this year, and then maybe any early reads on the reception of that ad?

Speaker #1: Sure . So , I mean , the way we look at marketing is it's very much an ROI driven approach . And if I step way back as much success as we have , we had a massive opportunity .

Tarang Amin: Sure. So, I mean, the way we look at marketing is it's very much an ROI-driven approach. And if I step way back, as much success as we have, we had a massive opportunity, and we still do, in terms of unaided awareness. Now, I'm proud that because of the strength of our marketing, we've almost tripled our unaided awareness over the last few years. It is still a fraction of the market leader, and, and the only difference is we've been around 22 years, and the market leader has been around 100. So we have some catching up to do, but it, it's a great, it's a great signal in terms of what our marketing does and how we're able to grow that awareness.

Speaker #1: We still do in terms of unaided awareness. Now, I'm proud that because of the strength of our marketing, we've almost tripled our unaided awareness over the last few years.

Speaker #1: Yet it's still a fraction of the market leader, and the only difference is we've been around 22 years and the market leader has been around 100.

Tarang Amin: It is still a fraction of the market leader, and, and the only difference is we've been around 22 years, and the market leader has been around 100. So we have some catching up to do, but it, it's a great, it's a great signal in terms of what our marketing does and how we're able to grow that awareness.

Speaker #1: So we have some catching up to do . But it's a great it's a great signal in terms of what our marketing does and how we're able to grow that awareness .

Speaker #1: One in three U.S. females now purchases e.l.f., which is a great stat, but I always tell the team that means two in three don't.

Tarang Amin: One in 3 US females now purchases e.l.f., which is a great stat, but I always tell the team that means 2 in 3 don't. So we still have a long way to go in terms of our consumer journey, regardless of the strength we have in terms of number one brand amongst Gen Z, Gen Alpha, and millennials. We continue to pick up other demographics and more consumers, and that's a direct reflection in terms of our marketing and how that's gone. In terms of how we measure it, we measure it quantitatively through a pretty sophisticated regression model, where we can isolate every campaign, every dollar spent, and for each investment dollar, how much are we getting in gross sales per dollar invested? And what I would tell you is, our marketing ROIs are multiples above any of the industry benchmarks.

Speaker #1: So we still have a long way to go in terms of our consumer journey , regardless of the strength we have in terms of number one brand amongst Gen Z , Gen Alpha and millennials , we continue to pick up other demographics and more consumers , and that's a direct reflection in terms of our marketing and how that's gone in terms of how we measure it .

Tarang Amin: In terms of how we measure it, we measure it quantitatively through a pretty sophisticated regression model, where we can isolate every campaign, every dollar spent, and for each investment dollar, how much are we getting in gross sales per dollar invested? And what I would tell you is, our marketing ROIs are multiples above any of the industry benchmarks.

Speaker #1: We measure it quantitatively through a pretty sophisticated regression model, where we can isolate every campaign, every dollar spent, and for each investment dollar, how much are we getting in gross sales per dollar invested?

Speaker #1: And what I would tell you is our marketing ROIs are multiples above any of the industry benchmarks. And reviews. A couple of different vendors over the years.

Tarang Amin: We've used a couple different vendors over the years. We started with Nielsen. We're using another one now, pretty consistent in terms of their methodology and approach, but with faster reads and broader reads. You know, it used to be many years ago when I started on ROI, you'd only get decent reads on TV and some of the broadcast. We can get reads on our individual campaigns, including our influencer campaigns, including our PR, including each of the core elements of our marketing mix, and the team is always looking and optimizing based on the reads that we're getting on that. I'll tell you that, you know, I've been in the consumer space 35 years. I've never seen a brand that can take up its marketing spend and actually continue to have really strong ROI. You usually see a diminished return.

Speaker #1: We started with Nielsen, using another one now—pretty consistent in terms of their methodology and approach, but with faster reads and broader reach.

Speaker #1: You know, it used to be many years ago when I started on ROI, you'd only get decent reads on TV, and some of the broad broadcasts. Now, we get reads on our individual campaigns, including our influencer campaigns, including our PR, including each of the core elements of our marketing mix.

Tarang Amin: We can get reads on our individual campaigns, including our influencer campaigns, including our PR, including each of the core elements of our marketing mix, and the team is always looking and optimizing based on the reads that we're getting on that. I'll tell you that, you know, I've been in the consumer space 35 years. I've never seen a brand that can take up its marketing spend and actually continue to have really strong ROI. You usually see a diminished return.

Speaker #1: And the team is always looking and optimizing based on the reads that we're getting on that . And I'll tell you that , you know , I've I've been in the consumer space 35 years .

Speaker #1: I've never seen a brand that can take up its marketing spend and actually continue to have really strong ROI. Usually, you see a diminishing return.

Speaker #1: So we're still looking for that diminished return . And , you know , we'll look at that . But it is an optimization model where you do take a look at okay , what's working the best and how do you go .

Tarang Amin: So we're still looking for that diminished return. And, you know, we'll look at that. But we-- it is an optimization model, where you do take a look at, okay, what's working the best, and how do you go? And I think the balance of that plan is the thing that really works for us. We're not... Unlike some of our legacy competitors, we're not, we're not overly dependent on any one channel, right? So a number of them were very dependent on print and TV, and when things moved on, they had a tough time kind of adjusting. If you look at the breadth of our marketing model, we're strong on every single social channel. We have great streaming. We have great video, our ability on influencer and events, the brand on brand stunts that we do.

Speaker #1: And I think the balance of that plan is the thing that really works for us. We're not unlike some of our legacy competitors.

Speaker #1: We're not we're not overly dependent on any one channel . So none of them are very dependent on print and TV . And when things moved on , they had a tough time kind of adjusting .

Tarang Amin: So a number of them were very dependent on print and TV, and when things moved on, they had a tough time kind of adjusting. If you look at the breadth of our marketing model, we're strong on every single social channel. We have great streaming. We have great video, our ability on influencer and events, the brand on brand stunts that we do. It's, there's a frenetic, you know, nature of our marketing, which is by design, where it always keeps this community engaged and entertained, and, and we continue to see very strong results coming off of that.

Speaker #1: If you look at the breadth of our marketing model, we're strong on every single social channel. We have great streaming, we have great video.

Speaker #1: Our ability on influencer and events , the brand on brand stunts that we do . It's there's a frenetic nature of our marketing , which is by design , where it always keeps this community engaged and entertained .

Tarang Amin: It's, there's a frenetic, you know, nature of our marketing, which is by design, where it always keeps this community engaged and entertained, and, and we continue to see very strong results coming off of that.

Speaker #1: And we continue to see very strong results coming off of that.

Speaker #2: That's great . You've invested thoughtfully behind people , space and infrastructure . So then as you look ahead , what do you when do you expect to begin seeing leverage in Non-marketing SG&A ?

Sydney Wagner: That's great. You've invested thoughtfully behind people, space, and infrastructure. So then, as you look ahead, when do you expect to begin seeing leverage in non-marketing SG&A, and what are the key drivers to help make that possible?

Sydney Wogen: That's great. You've invested thoughtfully behind people, space, and infrastructure. So then, as you look ahead, when do you expect to begin seeing leverage in non-marketing SG&A, and what are the key drivers to help make that possible?

Speaker #2: And what are the key drivers to help make that possible?

Speaker #4: Well, if you take a look back.

Mandy Fields: Well, if you take a look back over time, Sydney, we actually have delivered leverage in non-marketing SG&A over the last few years. It's until this year that we have kind of started to give some of that back, maybe towards the end of last year. And why we continue to invest is because we know that we are still very much in growth mode as a company. And so that means expanding the team, making sure that we have the right people in the right places, internationally, as an example, that we continue to show up well on shelf. And so we've invested quite a bit behind our space expansions and our existing space. You heard Tarang earlier talk about how beautiful the new Ulta set is, the new Target set as we go through.

Speaker #3: Over time , Sydney , we actually have delivered leverage in Non-marketing SG&A over the last few years until this year that we have kind of started to give some of that back , maybe towards the end of last year and why we continue to invest is because we know that we are still very much in growth mode as a company , and so that means expanding the team , making sure that we have the right people and the right places internationally .

Mandy Fields: And so that means expanding the team, making sure that we have the right people in the right places, internationally, as an example, that we continue to show up well on shelf. And so we've invested quite a bit behind our space expansions and our existing space. You heard Tarang earlier talk about how beautiful the new Ulta set is, the new Target set as we go through.

Speaker #3: As an example, that we continue to show up well on shelf. And so we've invested quite a bit behind our space expansions and our existing space.

Speaker #3: You heard earlier talk about how beautiful the new Ulta set is. The new Target set, as we go through. And so, want to make sure that we continue to invest there as well.

Mandy Fields: And so I want to make sure that we continue to invest there as well. And don't forget that we also had an ERP implementation over these last couple of years. And so that's also an area that we've invested in. All of these to make sure that we have the right foundation as we continue to move forward. And so I do think there's an opportunity for us to get back to leverage in non-marketing SG&A, being mindful of some of these investments, kind of pacing them in a way that more aligns with the sales growth that we're seeing. There is an opportunity there, but I also want to balance that with, we want to invest behind the growth that we know that we have ahead of us.

Speaker #3: And and don't forget that we also had an ERP implementation over these over these last couple of years . And so that's also an area that we've invested in all of these to make sure that we have the right foundation as we continue to move forward .

Speaker #3: And so I do think there's an opportunity for us to get back to leverage in Non-marketing a being mindful of some of these investments kind of pacing them in , in a , in a way that more aligns with the sales growth that we're seeing .

Mandy Fields: And so I do think there's an opportunity for us to get back to leverage in non-marketing SG&A, being mindful of some of these investments, kind of pacing them in a way that more aligns with the sales growth that we're seeing. There is an opportunity there, but I also want to balance that with, we want to invest behind the growth that we know that we have ahead of us.

Speaker #3: There's an opportunity there. But I also want to balance that with, we want to invest behind the growth that we know that we have ahead of us.

Speaker #3: There's still so much white space for us to go after, and I don't want to constrain it too much. And so it's something definitely that we're being mindful of.

Mandy Fields: There's still so much white space for us to go after, and don't want to constrain it too much. So it's something definitely that we're being mindful of. But really, when it comes down to it, it's adjusted EBITDA margin expansion that we're going to be focused on, and that can come from either gross margin or that non-marketing SG&A line as we go through.

Speaker #3: But really , when it comes down to it , it's it's adjusted EBITDA margin expansion that we're going to be focused on . And that can come from either gross margin or that non-marketing SG&A line as we go through .

Speaker #1: Yeah . And there's a help that gives us a good , healthy tension . Obviously , as we take a look , if we let the optimization models around the marketing , you invest even more in marketing .

Tarang Amin: Yeah. As a result, that gives us a good, healthy tension. Obviously, as we take a look, if we let the optimization models around the marketing, you'd invest even more in marketing. But we've constrained it to a rate-based approach and said, "Okay, you've got this rate. Optimize within that rate, what you can do across our brand portfolio," and that's worked well for us. Same with the non-marketing SG&A. We've had a good track record of getting leverage there. We've had some of these. I would call it outsized investments, particularly in SAP, and the infrastructure related to that. And so we have confidence that over time, we can get back to the non-marketing leverage in non-marketing SG&A, to similar to what we were doing before, given the growth profile that we have. But again, sometimes we'll see lumpiness in it.

Speaker #1: But we've constrained it to a rate based approach and said , okay , you've got this rate optimized within that rate , what you can do across our brand portfolio .

Speaker #1: And that's worked well for us . Same with the Non-marketing SG&A . We've had a good track record of getting leverage there . We've had some of these , I would call it outsized investments , particularly in SAP and the infrastructure related to that .

Tarang Amin: Same with the non-marketing SG&A. We've had a good track record of getting leverage there. We've had some of these. I would call it outsized investments, particularly in SAP, and the infrastructure related to that. And so we have confidence that over time, we can get back to the non-marketing leverage in non-marketing SG&A, to similar to what we were doing before, given the growth profile that we have. But again, sometimes we'll see lumpiness in it.

Speaker #1: And so we have confidence that, over time, we can get back to the non-marketing leverage in non-marketing SG&A to similar to what we were doing before, given the growth profile that we have.

Speaker #1: Again , sometimes we'll see lumpiness in it . I don't think I mean , obviously this year we're not having leverage in the non-marketing , and that was a conscious choice in terms of some of the investments we wanted to make .

Tarang Amin: I don't think – I mean, obviously, this year we're not having leverage in the non-marketing SG&A, and that was through a conscious choice in terms of some of the investments we wanted to make. We'll be in a better position in the May call to talk about next fiscal year and how we see that shaping up. But overall, you know, I think it's in our control what things we want to invest in and what we want to pace out. And a lot of that is dependent on how big do we see that opportunity and how do we want to sequence those opportunities, because we can't go after all opportunities all at the same time. There's this massive wide space. Only 20% of our business is still outside the US.

Speaker #1: We'll be in a better position in the May call to talk about next fiscal year and how we see that shaping up, but overall, you know, I think it's in our control.

Tarang Amin: But overall, you know, I think it's in our control what things we want to invest in and what we want to pace out. And a lot of that is dependent on how big do we see that opportunity and how do we want to sequence those opportunities, because we can't go after all opportunities all at the same time. There's this massive wide space. Only 20% of our business is still outside the US.

Speaker #1: What things we want to invest in, and what we want to pace out, and a lot of that is dependent on how they do.

Speaker #1: We see that opportunity, and how do we want to sequence those opportunities? Because we can't go after all opportunities all at the same time.

Speaker #1: There's this massive whitespace , only 20% of our business is still outside the US . But you've never heard us say like , hey , we're going to cover the world all in one go .

Tarang Amin: But you've never heard us say, like, "Hey, we're going to cover the world all in one go." We're going to do it sequentially, like you've seen us do in India. Kind of put a stake in the ground with Sephora in Mexico. You've seen what we've done in Australia and New Zealand and, you know, put a small stake in India. But Asia, Latin America, are still quite open to us and really looking at the right sequencing as we take a look at that expansion.

Speaker #1: We're going to do it sequentially, like you've seen us do in India. Kind of put a stake in the ground with Sephora in Mexico.

Speaker #1: You've seen what we've done in Australia and New Zealand, and you know, put a small stake in India. But Asia, Latin America are still quite open to us.

Speaker #1: And really looking at the right sequencing as we take a look at that expansion.

Speaker #2: That's great . I want to I want to touch a little more on of your strategic philosophy . So maybe kind of going back to innovation , you've already shared several exciting spring .

Sydney Wagner: That's great. I want to touch a little more on kind of your strategic philosophy. So maybe kind of going back to innovation, you've already shared several exciting spring innovations. But stepping back, how would you describe your innovation philosophy today, and what do you believe continues to differentiate your engine from peers?

Sydney Wogen: That's great. I want to touch a little more on kind of your strategic philosophy. So maybe kind of going back to innovation, you've already shared several exciting spring innovations. But stepping back, how would you describe your innovation philosophy today, and what do you believe continues to differentiate your engine from peers?

Speaker #2: But stepping back, how would you describe your innovation philosophy today? And what do you believe continues to differentiate your engine from peers?

Speaker #1: Yeah , so I would say philosophically , our innovation philosophy , our consumer engagement philosophy are quite similar and quite differentiated from competition and the differentiation is is very much community led .

Tarang Amin: So I would say philosophically, our innovation philosophy, our consumer engagement philosophy, are quite similar and quite differentiated from competition. The differentiation is it's very much community-led. A lot of people will talk about being close to the consumers, but at the same time, we'll talk about the massive research centers they have, the thousands of scientists they employ, how much they spend in R&D. If you look at the innovation output relative to both investment as well as just overall period, we've had the best innovation output of any of our competitors. You know, we talked in our call that in 2024, I think we had 6 of the top 10 launches in all of color cosmetics, which is a ridiculous stat, knowing that there are almost 1,000 brands in color cosmetics.

Speaker #1: A lot of people will talk about being close to the consumers, but at the same time, we'll talk about the massive research centers they have.

Speaker #1: The thousands of scientists they employ , how much they spend in R&D . If you look at the innovation output relative , both investment as well as just overall period , we've had the best innovation output of any of our competitors .

Tarang Amin: If you look at the innovation output relative to both investment as well as just overall period, we've had the best innovation output of any of our competitors. You know, we talked in our call that in 2024, I think we had 6 of the top 10 launches in all of color cosmetics, which is a ridiculous stat, knowing that there are almost 1,000 brands in color cosmetics.

Speaker #1: You know , we talked in our call that in 2024 . I think we had six of the top ten launches in all of color cosmetics , which is a ridiculous stat , knowing that there are almost 1000 brands in color cosmetics , even 2025 , we had four of the top ten launches in all of color cosmetics .

Tarang Amin: Even 2025, we had 4 of the top 10 launches in all of color cosmetics. I mentioned earlier, our innovation, because it's community-led, is evergreen, because we will always stay in tune to what consumers are seeing kind of on the high end. And sometimes those items, it's not dependent on any particular cycle of premium innovation. You know, one of our best launches ever, as I mentioned earlier, lip oils. The inspiration of that was a prestige item that, frankly, had been around for more than a decade, that took off virally, a couple of years ago. And our ability to jump on it and introduce even a better product, instead of $38, I think we introduced ours at $8, and 1,000 TikTok videos the next day. And we have that ability over and over and over again.

Speaker #1: I mentioned earlier . Our innovation , because it's community led , is evergreen , because we will always stay in tune to what consumers are seeing , kind of on the high end .

Speaker #1: And sometimes those items , it's not dependent on any particular cycle of premium innovation . You know , one of our best launches ever that I mentioned earlier , lip oils , the inspiration of that was a prestige item that , frankly , had been around for more than a decade .

Tarang Amin: You know, one of our best launches ever, as I mentioned earlier, lip oils. The inspiration of that was a prestige item that, frankly, had been around for more than a decade, that took off virally, a couple of years ago. And our ability to jump on it and introduce even a better product, instead of $38, I think we introduced ours at $8, and 1,000 TikTok videos the next day. And we have that ability over and over and over again.

Speaker #1: That took off virally a couple of years ago. And our ability to jump on it and introduce even a better product instead of $38.

Speaker #1: I think we introduced ours at 8,000 TikTok videos the next day. We have that ability. Over and over and over again.

Speaker #1: So we have a three-year pipeline that goes out, basically identifying some of the things that consumers are really interested in, what our team is really interested in, and then we'll pivot that pipeline depending on what we see.

Tarang Amin: So we have a three-year pipeline that goes out, basically identifying some of the things that consumers are really interested in, what our team is really interested in, and then we'll pivot that pipeline depending on what we see having particular interest. So that's been a very good model. I talked earlier. Our innovations, the consistency of it has been incredible. The percent of sales that we are able to get from innovation year after year after year has been consistent. We had one anomaly in 2024 with the lip oils, but otherwise, it's been really consistent on a much bigger base business. So innovation continues to deliver more and more for us as we go through.

Speaker #1: Having particular interest . And so that's been a very good model . I talked earlier , our innovations , the consistency of it has been been incredible .

Speaker #1: The percent of sales that we are able to get from innovation year after year after year has been consistent, with one anomaly in 2024, with the lip oils, but otherwise it's been consistent on a much bigger base business.

Tarang Amin: The percent of sales that we are able to get from innovation year after year after year has been consistent. We had one anomaly in 2024 with the lip oils, but otherwise, it's been really consistent on a much bigger base business. So innovation continues to deliver more and more for us as we go through.

Speaker #1: So innovation continues to deliver more and more for us as we go through . And then we also , you know , I don't think we've disclosed it , but we also look at that all three metric of what percent of our sales are items we launched in the last three years .

Tarang Amin: And then we also, you know, I, I don't think we've disclosed it, but we also look at that old 3M metric of what percent of our sales are items we launched in the last three years. And again, there's been incredible consistency to that as well, even as our business has gotten much bigger. And so the philosophy of our innovation is take the things consumers really want but can't afford. Not everyone can afford a $56 silk canvas kind of primer. Not everyone can afford a $38 lipstick. Two-thirds of Americans live paycheck to paycheck, so we take great responsibility in our ability of taking that level of quality, putting our twist, and driving it at a great value.

Speaker #1: And again , there's been incredible consistency to that as well , even as our business has got much bigger . And so the philosophy of our innovation is take the things consumers really want , but can't afford , not everyone can afford a $56 silk canvas kind primer .

Tarang Amin: Not everyone can afford a $56 silk canvas kind of primer. Not everyone can afford a $38 lipstick. Two-thirds of Americans live paycheck to paycheck, so we take great responsibility in our ability of taking that level of quality, putting our twist, and driving it at a great value.

Speaker #1: Not everyone can afford a $38 lipstick , two thirds of Americans live paycheck to paycheck , so we take great responsibility and our ability of take that level of quality , putting our twist and driving it at a great value and as great as our price points are , the part that I'm actually most proud of in our innovation approach is we've taken up our quality scores every single year for the last ten years , so we have a model that allows us not only to get that level of quality , but these incredible prices .

Tarang Amin: As great as our price points are, the part that I'm actually most proud of in our innovation approach is we've taken up our quality scores every single year for the last 10 years. So we have a durable model that allows us not only to get that level of quality, but at these incredible prices, and you see the consistency of that overall. I'd say that's both the approach with our innovation, but it's also the approach of our marketing. There are very few companies, I don't know any other company, that could jump on a signal from a cultural norm. When Bad Bunny went on Saturday Night Live and said, "Okay, you got 4 months to learn Spanish," jump on it.

Speaker #1: And you see the consistency of that overall. And I'd say that's both the approach with our innovation, but it's also the approach of our marketing.

Tarang Amin: I'd say that's both the approach with our innovation, but it's also the approach of our marketing. There are very few companies, I don't know any other company, that could jump on a signal from a cultural norm. When Bad Bunny went on Saturday Night Live and said, "Okay, you got 4 months to learn Spanish," jump on it.

Speaker #1: They're very few companies that in any other company that could jump on a signal from a cultural norm . When Bad Bunny went on Saturday Night Live and said , okay , you got four months to learn Spanish , jump on it .

Speaker #1: And I think the final production, I think we did in nine days. To be able to jump on and have a culturally relevant spot that tied into that moment was universal.

Tarang Amin: I think the final production, I think we did in 9 days to be able to jump on and have a culturally relevant spot that tied into that moment was universal. I mean, you know, the amount of social we have coming out of Mexico and Latin America, and that preceding that often happens with our brand, just given that virality and how strong it is socially, really, really helps us. So I'd say it's both innovation as well as our overall model in terms of how we engage with our community as well.

Speaker #1: In our, you know, the amount of social we have coming out of Mexico and Latin America, and that preceding that often happens with our brands.

Speaker #1: Given that virality and how strong it is socially really, really helps us. And so I'd say it's both innovation as well as our overall model in terms of how we engage with our community as well.

Speaker #2: So you recently did a fragrance collaboration with H&M, which was a really interesting step into an adjacent category. So how are you thinking more broadly about adjacent category opportunities, and what criteria guide whether a category feels right for e.l.f.'s model or not?

Sydney Wagner: So you recently did a fragrance collaboration with H&M, which was a really interesting step into an adjacent category. So how are you thinking more broadly about adjacent category opportunities, and what criteria guide whether a category feels right for e.l.f.'s model or not?

Sydney Wogen: So you recently did a fragrance collaboration with H&M, which was a really interesting step into an adjacent category. So how are you thinking more broadly about adjacent category opportunities, and what criteria guide whether a category feels right for e.l.f.'s model or not?

Speaker #4: Well , really ,

Mandy Fields: ... Well, really, we take the signals from our community, Sydney. And with our collaboration with H&M, we're super excited about that. It's our first toe dip into a fragrance category, just to see how the community responds, and the response has been fantastic so far. You know, we take those signals, and it's community-led, just like Tarang was saying, with our innovation. And so I think our community has given us permission to go into some category adjacencies. You know, we'll see where we go with that, but we're very excited for what the future may hold, on that front.

Mandy Fields: Well, really, we take the signals from our community, Sydney. And with our collaboration with H&M, we're super excited about that. It's our first toe dip into a fragrance category, just to see how the community responds, and the response has been fantastic so far. You know, we take those signals, and it's community-led, just like Tarang was saying, with our innovation. And so I think our community has given us permission to go into some category adjacencies. You know, we'll see where we go with that, but we're very excited for what the future may hold, on that front.

Speaker #3: We take the signals from our community . Sydney and with our collaboration with H&M , we're super excited about that . our first toe dip into fragrance category , just to see how how the community responds and the response has been fantastic so far .

Speaker #3: You know , we we take those signals and it's community led just like during the thing with our innovation . And so I think our community has given us permission to go into some category adjacencies .

Speaker #3: And we'll see where we go with that. But we're very excited for what the future may hold on that front.

Speaker #1: Yeah . And just building on that , as you as we've mapped it , as we've done our brand work , elf is an incredibly elastic brand .

Tarang Amin: Yeah. And just building on that, as we've mapped it, as we've done our brand work, e.l.f. is an incredibly elastic brand. I don't know of another brand that in the same quarter could launch in Dollar General and Sephora Mexico and look like it belongs in both places. It's an incredibly elastic brand in terms of its footprint and its affinity with consumers. We talked about the multigenerational appeal, but also from a category standpoint. I mean, we weren't even in the skincare business a few years ago, and now have a top ten mass skincare brand, and e.l.f. SKIN has so much more potential, actually now three of the fastest growing skincare brands in e.l.f. SKIN, Naturium, and rhode. There isn't a category that consumers have not given us permission to enter.

Speaker #1: I don't know of another brand that, in the same quarter, could launch in Dollar General and Sephora Mexico and look like it belongs in both.

Speaker #1: Both places. It's an incredibly elastic brand in terms of its footprint and its affinity with consumers. We talked about the multi-generational appeal, but also from a category standpoint.

Tarang Amin: We talked about the multigenerational appeal, but also from a category standpoint. I mean, we weren't even in the skincare business a few years ago, and now have a top ten mass skincare brand, and e.l.f. SKIN has so much more potential, actually now three of the fastest growing skincare brands in e.l.f. SKIN, Naturium, and rhode. There isn't a category that consumers have not given us permission to enter.

Speaker #1: I mean, we weren't even in the skincare business a few years ago. Now we have a top ten skincare brand, and e.l.f. Skin has so much more potential.

Speaker #1: I've actually now three of the fastest growing skincare brands in e.l.f. Skin, Naturium, and Rhode. There isn't a category that consumers have not given us permission to enter.

Speaker #1: So then for us , it's about discipline , sequencing . And is . Mandy just talk . You'll see we're constantly testing and learning .

Tarang Amin: So then for us, it's about discipline, sequencing, and as Mandy just talked, you'll see we're constantly testing and learning. We're constantly trying different things, and this was a very low-risk trial. H&M, being able to kind of give their expertise, their kind of core global footprint, 27 different countries we're putting this in. So it gives us signals in more ways than one, not only in the category, but kind of in the, in the consumer response. And then there are other categories we're also looking at. But again, we have, if all we did was realize our potential in cosmetics and skincare, we just have a massive amount of white space ahead of us still.

Speaker #1: We're constantly trying different things . And this was a low risk trial . H&M being able to kind of give their expertise , their kind of core global footprint , 27 different countries are putting this in .

Speaker #1: So it gives us signals in more ways than one , not only in the category , but kind of in the in the consumer response .

Tarang Amin: So it gives us signals in more ways than one, not only in the category, but kind of in the, in the consumer response. And then there are other categories we're also looking at. But again, we have, if all we did was realize our potential in cosmetics and skincare, we just have a massive amount of white space ahead of us still.

Speaker #1: And then there are other categories . We're also looking at . But again , we we have if all we did was realize our potential in cosmetics and skincare , we just have a massive amount of white space ahead of us still .

Speaker #1: So we can have a very high bar and be choosy of kind of how we do it, but it will be probably similar to the way we did e.l.f. Skin, where you try and e.l.f. Skin.

Tarang Amin: So we can have a very high bar and be choosy of kind of how we do it, but it will be probably similar to the way we did e.l.f. SKIN, where you try. In e.l.f. SKIN, we partnered with one of our leading customers. They gave it kind of cover to be able for us to figure out what aspects of that proposition were resonating. We quickly found that our Holy Hydration lineup was a real winner, and we kept building off of that, and then shifted at some point to our Holy Grail approach that we have on color, where there's products in prestige that are incredibly high priced that have really good benefits, and we could put our twist and bring those to market.

Speaker #1: We partnered with one of our leading customers. They gave it kind of cover to be able for us to figure out what aspects of that proposition were resonating.

Speaker #1: We quickly found that our holy hydration lineup was a real winner , and we kept building off of that . And then shifted at some point to our holy grail approach that we have on color , where there's products in prestige that are incredibly high priced , that have really good benefits , and we can put our twist and bring those to market .

Tarang Amin: We quickly found that our Holy Hydration lineup was a real winner, and we kept building off of that, and then shifted at some point to our Holy Grail approach that we have on color, where there's products in prestige that are incredibly high priced that have really good benefits, and we could put our twist and bring those to market.

Speaker #1: And we've seen that really propel the growth in e.l.f. Skin. And you'll see the same in other categories over time. But again, we have the luxury of so much white space in our first two categories that we can take our time.

Tarang Amin: And we've seen that really propel the growth in e.l.f. SKIN, and you'll see the same in other categories over time. But again, we have the luxury of so much white space in our first two categories, so we can take our time.

Speaker #2: That's great. So then, on 'road' as it continues to scale, how are you thinking about the cadence of new product introductions and the balance between DTC and Sephora as you scale?

Sydney Wagner: That's great. So then on rhode, as that brand continues to scale, how are you thinking about the cadence of new product introductions and the balance between DTC and Sephora as you scale?

Sydney Wogen: That's great. So then on rhode, as that brand continues to scale, how are you thinking about the cadence of new product introductions and the balance between DTC and Sephora as you scale?

Speaker #1: Yeah, I mean, the great thing about Rhode is one of the things that really appealed to us is just how thoughtful a founder Hailey Bieber and her partners are.

Tarang Amin: Yeah. I mean, the great thing about rhode is, one of the things that really appealed to us is just how thoughtful a founder Hailey Bieber and her partners are. And so, you know, she started out with, "I just want one of something really good," right? One of everything really good. And so it was a highly curated lineup. I mean, even when we bought the business, there was only 10 main products, DTC only, and it already reached over $212 million in net sales. And so you're not gonna see an overproliferation of SKUs, but you are gonna see a constant stream of innovation, particularly with our power and innovation, being able to partner with theirs, just gives much greater capability of the things that we can go after.

Speaker #1: And so, you know, she started out with, I just want one of something really good, right? One of everything really good.

Speaker #1: And so it was a highly curated lineup. I mean, even when we bought the business, there were only ten main products.

Tarang Amin: I mean, even when we bought the business, there was only 10 main products, DTC only, and it already reached over $212 million in net sales. And so you're not gonna see an overproliferation of SKUs, but you are gonna see a constant stream of innovation, particularly with our power and innovation, being able to partner with theirs, just gives much greater capability of the things that we can go after.

Speaker #1: DTC only , and it already reached over 212 million in net sales . And so you're not going to see an over proliferation of SKUs , but you are going to see a constant stream of innovation , particularly with our power and innovation .

Speaker #1: Being able to partner with theirs just gives much greater capability of the things that we can go after . You know , I love the math , the face mask that we just introduced , the lip mask that we just introduced the the sales of those are already terrific .

Tarang Amin: You know, I love the masks, the face masks that we just introduced, the lip masks that we just introduced. The sales on those are already terrific. I think... I don't know, I think even the pre-alert, Mandy, on the last one, I think we had something like 100,000 people just waiting in line before we even launched something. So that demand, the crazy amount of demand, and part of the reason why there's such crazy demand is people really trust Hailey and the rhode team in terms of their instincts of what's gonna be really good. They really trust. I mean, the amount of personal effort Hailey puts into every single product, the number of iterations we have, the number of kind of back and forth, it's just incredible to see.

Speaker #1: I think . I don't know , I think even the Pre-alert Mandy on on the last one , I think we had something like 100,000 people just waiting in line before we even launched something .

Speaker #1: So that demand—that crazy amount of demand. And part of the reason why there's such crazy demand is people really trust Hailey and the Rhode team in terms of their instincts of what's going to be really good.

Tarang Amin: So that demand, the crazy amount of demand, and part of the reason why there's such crazy demand is people really trust Hailey and the rhode team in terms of their instincts of what's gonna be really good. They really trust. I mean, the amount of personal effort Hailey puts into every single product, the number of iterations we have, the number of kind of back and forth, it's just incredible to see.

Speaker #1: They really trust . I mean , the amount of amount of personal effort . Hailey puts into every single product , the number of iterations we have , the number of kind of back and forth , it's just incredible to see .

Speaker #1: I mean, she's not going to let anything go out that isn't absolutely perfect. That fits her lifestyle, and that's what people want to buy into.

Tarang Amin: I mean, she's not gonna let anything go out that isn't absolutely perfect, that fits her lifestyle, and that's what people want to buy into. So you're gonna see a consistent cadence of innovation, but what I will tell you, you're not gonna see, you're not gonna see this massive like, "Hey, one day we're gonna wake up, and we're gonna have 400 items in, in color." That's, that's just not the brand, and, and we wanna make sure that we stay true to Hailey's vision and continue to support that, and particularly the capabilities we have. The capabilities we have in distribution, including supporting that distribution with field sales support, the capabilities we have in marketing and building, continue to build up the awareness of that brand. As successful as it has been, we still see a massive opportunity there.

Speaker #1: So you're going to see a consistent cadence of innovation . But what I will tell you , you're not going to see you're not going to see this massive like , hey , one day we're going to wake up and we're going to have 400 items in in color .

Speaker #1: That's just not the brand. And we want to make sure that we stay true to Hailey's vision and continue to support that.

Tarang Amin: That's, that's just not the brand, and, and we wanna make sure that we stay true to Hailey's vision and continue to support that, and particularly the capabilities we have. The capabilities we have in distribution, including supporting that distribution with field sales support, the capabilities we have in marketing and building, continue to build up the awareness of that brand. As successful as it has been, we still see a massive opportunity there.

Speaker #1: And particularly with the capabilities we have , the capabilities we have in distribution , including supporting that distribution with field sales support , the capabilities we have in marketing and building , continuing to build up the awareness of that brand as successful as it has been , we still see a massive opportunity there .

Speaker #1: And then our innovation muscle , obviously being able to collaborate and being being helpful , the last thing I'd say is we have very much we're a founder's dream when it comes to acquisitions because we don't try to over integrate an acquisition .

Tarang Amin: And then our innovation muscle, obviously being able to collaborate and being helpful. The last thing I'd say is we have very much, we're a founder's dream when it comes to acquisitions, 'cause we don't try to over-integrate in acquisitions. We keep the entire team. We support their vision. We've done the same thing with Naturium, and as you've seen, the expansion, we help, like where do they need help and be able to go from there. So you have the best of both worlds. The vast majority of team can stay focused on Elf Color and Elf Skin. The Rhode team is doing terrific. We'll, we'll enhance that, just like we've enhanced the Naturium team, and gives us even greater power.

Speaker #1: We keep the entire team . We support their vision . We've done the same thing with Notarium , and as you've seen , the expansion , we help .

Tarang Amin: We've done the same thing with Naturium, and as you've seen, the expansion, we help, like where do they need help and be able to go from there. So you have the best of both worlds. The vast majority of team can stay focused on Elf Color and Elf Skin. The Rhode team is doing terrific. We'll, we'll enhance that, just like we've enhanced the Naturium team, and gives us even greater power.

Speaker #1: Where do they need help, and be able to go from there? So you have the best of both worlds. The vast majority of the team can stay focused on health, color, and e.l.f. Skin.

Speaker #1: The road team is doing terrific; it will enhance that. Just like we've enhanced the team and it gives us even greater power.

Speaker #1: That's the other thing. I think that's missing for people is, show me another company that has five main growth brands and all of them are growing, right?

Tarang Amin: That's the other thing I think that's missing for people is, show me another company that has 5 main growth brands and all of them are growing, right? If I look at e.l.f. Cosmetics, e.l.f. SKIN, Naturium, rhode, and even Well People, a smaller brand that we acquired a number of years ago, each are complementary and distinct, and each have very strong growth profiles on their own. And so that also gives me, gives me confidence in the overall portfolio.

Speaker #1: If I look at elf color , elf skin Road , and even , well , people , smaller brand that we acquired a number of years ago .

Speaker #1: Each are complementary, distinct, and each have very strong growth profiles of their own. And so that also gives me confidence in the overall portfolio.

Speaker #2: Yeah , kind of on that growth point . I mean , as you've pointed out , Elf is continued to grow and outpace .

Sydney Wagner: ... Yeah, kind of on that growth point, I mean, as you've pointed out, e.l.f. has continued to grow and outpace, you know, the category. What are the structural elements of the model that give you confidence that you can continue to grow, at least in line with this, if not ahead of the category over time?

Sydney Wogen: ... Yeah, kind of on that growth point, I mean, as you've pointed out, e.l.f. has continued to grow and outpace, you know, the category. What are the structural elements of the model that give you confidence that you can continue to grow, at least in line with this, if not ahead of the category over time?

Speaker #2: You know , the category . What are the structural elements of the model that give you confidence that you can continue to grow , at least in line with , if not ahead of the category over time ?

Speaker #1: Yeah. Do you want to answer that?

Tarang Amin: Yeah, do you want me to answer that?

Mandy Fields: Yeah, I would say it's really the things that we've talked about today, Sydney, our value proposition, our innovation engine, and our marketing engine. I mean, all of those things working together to continue to drive us forward. Those are at the essence of who e.l.f. is. Our connection with our community is unparalleled. The innovation that we launch is community-led, inspired. We're listening to them in launching the things that they're asking for, and then keeping that at a great value, at prestige quality, at an incredible value. And so those things will always be at the core of who e.l.f. is and drive continued growth for this company.

Speaker #3: I would say it's really the things that we've talked about today . Sydney , our value proposition , our innovation engine and our marketing engine , I mean , all of those things working together to continue to drive us forward .

Speaker #3: Those are at the essence of who else is our connection with our community. It is unparalleled. The innovation that we launch is community led, inspired.

Mandy Fields: The innovation that we launch is community-led, inspired. We're listening to them in launching the things that they're asking for, and then keeping that at a great value, at prestige quality, at an incredible value. And so those things will always be at the core of who e.l.f. is and drive continued growth for this company.

Speaker #3: We're listening to them and launching the things that they're asking for . And then keeping that at a great value at prestige , quality , at incredible value .

Speaker #3: And so those things will always be at the core of who e.l.f. is and drive continued growth for this company.

Speaker #1: And we continue to pick up more consumers. Right. So everyone always pays attention to our strengths in Gen Z, it's mind.

Tarang Amin: And we continue to pick up more consumers, right? So everyone always pays attention to our strength in Gen Z. It's mind-baffling just how much of a lead we have on Gen Z relative to a very fragmented category. It just shows kind of the... Always look for those areas that you have dominance or strength that become your rock. Gen Z is, but people didn't even notice that we're also the number one brand amongst Gen Alpha. So we're also picking up that next generation of consumers, and in the process, became number one with millennials and continue to pick up more in Gen X and across every demographic group, every income group, really every kind of core dimension. We still have a long way to go. So I'd say we're still...

Speaker #1: Baffling just how much of a lead we have on Gen Z relative to a very fragmented category. Just shows, kind of, always look for those areas that you have dominance or strength that become your rock.

Speaker #1: Gen Z is, but people didn't even notice that we were also the number one brand amongst Gen Alpha. So we're also picking up that next generation of consumers.

Tarang Amin: Gen Z is, but people didn't even notice that we're also the number one brand amongst Gen Alpha. So we're also picking up that next generation of consumers, and in the process, became number one with millennials and continue to pick up more in Gen X and across every demographic group, every income group, really every kind of core dimension. We still have a long way to go. So I'd say we're still...

Speaker #1: And in the process became number one with millennials, and continue to pick up more on Gen X and across every, every demographic group, every income group, really every kind of core dimension.

Speaker #1: We still have a long way to go . So I'd say we're still just for perspective . I've worked on brands that were over 100 years old , and you still felt like , hey , we still have more people to go get more people to drive in .

Tarang Amin: Just for perspective, I've worked on brands that were over 100 years old, and you still felt like, "Hey, we still have more people to go get, more people to drive in." We're very much early in that stage, regardless of kind of the success we've had. You know, I keep pointing people even to Target, where nationally, we're at 13 share. We're almost at 23 share right now in the last 4 weeks at Target. And the only difference between Target and everyone else is they had a head start. They had a few year head start.

Speaker #1: We're very much early in that stage , regardless of kind of the success we've had . And , you know , and I keep pointing people even to to target where nationally we're at 13 share .

Speaker #1: We're almost at a 23 share right now in the last four weeks at Target. And the only target and everyone else is, they had a head start.

Speaker #1: They had a few year head start . As I look at the trajectories of where Walmart is , where Ulta is , where others are , we still have a long way to go in terms of the really fully realizing our potential .

Tarang Amin: As I look for trajectories of where Walmart is, where Ulta is, where others are, we still have a long way to go in terms of really fully realizing our potential just in color, and skin's even a bigger opportunity, as reflected in kind of the growing portfolio that we have and what we see. Global skincare is bigger than global color, and our ability having this hybrid between color and skin, which I think is the next frontier, and a number of our products really fall within that hybrid range, which consumers are preferring, and we're well positioned there across our portfolio.

Speaker #1: Just in color and skins. Even a bigger opportunity, as it is reflected in the kind of growing portfolio that we have and what we see.

Speaker #1: Global skincare is bigger than global color and and our ability having this hybrid between color and skin , which I think is the next frontier , and a number of our products really fall within that hybrid range , which consumers are are preferring .

Speaker #1: And we're positioned there across our portfolio.

Speaker #2: Yeah , we're definitely seeing the skin ification of of makeup continue to to take over the category . So velocity we've touched on it a little bit , but I want to just click in there a bit more .

Sydney Wagner: Yeah, we're definitely seeing the skinification of makeup continue to take over the category. So velocity, we touched on it a little bit, but I wanna just click in there a bit more. It's really historically been a strength for you guys. What are the elements of the playbook that are the most relevant today, and what's evolving as channels and shopper behavior shift? And what are you taking strategically internationally? Because you've kind of touched on that being a strategic focus now for you guys.

Sydney Wogen: Yeah, we're definitely seeing the skinification of makeup continue to take over the category. So velocity, we touched on it a little bit, but I wanna just click in there a bit more. It's really historically been a strength for you guys. What are the elements of the playbook that are the most relevant today, and what's evolving as channels and shopper behavior shift? And what are you taking strategically internationally? Because you've kind of touched on that being a strategic focus now for you guys.

Speaker #2: It's really historically been a strength for you guys. What are the elements of the playbook that are the most relevant today? And what's evolving as channels and shopper behavior shift, and what are you taking strategically internationally? Because you kind of touched on that being a strategic focus now for you guys.

Speaker #4: So when we think about velocity, we...

Mandy Fields: So when we think about velocity, we really talk about productivity. That's really the measure that we're looking at. I talked a lot about that last year at CAGNY, the dollars per linear foot that we're generating, and we're still amongst the top, you know, the number one, at our top retailers from a productivity standpoint, and that's very important to our retailers. And that's something that we have to continue to focus on. I know we talk a lot about space expansion, or there's a lot of focus on space expansion, but when it really comes down to it, how productive you are with the space that you have is the most important thing, as we go through.

Speaker #3: Really, talk about productivity. That's really the measure that we're looking at. I talked a lot about that last year at CAGNY.

Speaker #3: The dollars per linear foot that we're generating , and we're still amongst the top , you know , the number one at our top retailers from a productivity standpoint .

Speaker #3: And that's very important to our retailers. And that's something that we have to continue to focus on. I know we talk a lot about space expansion, or there's a lot of focus on space expansion, but what it really comes down to is how productive you are with the space that you have. That is the most important thing.

Mandy Fields: And that's something that we have to continue to focus on. I know we talk a lot about space expansion, or there's a lot of focus on space expansion, but when it really comes down to it, how productive you are with the space that you have is the most important thing, as we go through. And again, that has really been driven by the innovation that we've been able to launch, the marketing that we've been able to wrap around that innovation, and really speak to our community.

Speaker #3: As we go through . And again , that has really been driven by the innovation that we've been able to launch , the marketing that we've been able to wrap around , that innovation and really speak to our community .

Mandy Fields: And again, that has really been driven by the innovation that we've been able to launch, the marketing that we've been able to wrap around that innovation, and really speak to our community. And so that is always gonna be number one for us. How productive are we with our shelves? And as you heard Tarang talk about earlier on, we're really focused on that from an international perspective as well, not just seeding new markets, but also how are we increasing our productivity with our existing retailers, particularly in the UK and Germany. And so that's something that you'll continue to hear us talk about, and certainly, it's a focus for us.

Speaker #3: And so that is always going to be number one for us. How productive are we with our shelves? And as you heard Tarang talk about earlier on, we're really focused on that from an international perspective as well.

Mandy Fields: And so that is always gonna be number one for us. How productive are we with our shelves? And as you heard Tarang talk about earlier on, we're really focused on that from an international perspective as well, not just seeding new markets, but also how are we increasing our productivity with our existing retailers, particularly in the UK and Germany. And so that's something that you'll continue to hear us talk about, and certainly, it's a focus for us.

Speaker #3: Not just seeding new markets, but also, how are we increasing our productivity with our existing retailers, particularly in the UK and Germany?

Speaker #3: And so that's something that you'll continue to hear us talk about, and certainly as a focus for us.

Speaker #1: Yeah. And what I'd add to that is it's a proactive approach. So it's not just an end output of the effectiveness of our marketing innovation.

Tarang Amin: Yeah, and what I'd add to that is, it's a proactive approach. So it's not just an end output of the effectiveness of our marketing, innovation, and value. We proactively change out items. Nobody else in our space does what we do, which is consistently, year in, year out, we will proactively change out up to 20% of our assortment. That is a very differentiated approach in terms of how you manage a shelf, how you manage the visual merchandising. And if you take a look at our overall SKU count, on the e.l.f. brand, I've been CEO 12 years, it's relatively constant, so we're constantly weeding and feeding. And so it also leads to very strong, not only productivity from a dollar per sale standpoint, but strong productivity from an operational standpoint as well. We're not, we're not a company...

Speaker #1: And value . We proactively change out items nobody else in our space does . What we do , which is consistently year in , year out .

Speaker #1: We will proactively change out up to 20% of our assortment . That is a very differentiated approach in terms of how you manage your shelf , how you manage the visual merchandising , and if you take a look at our overall SKU count on the shelf brand , I've been CEO 12 years .

Tarang Amin: That is a very differentiated approach in terms of how you manage a shelf, how you manage the visual merchandising. And if you take a look at our overall SKU count, on the e.l.f. brand, I've been CEO 12 years, it's relatively constant, so we're constantly weeding and feeding. And so it also leads to very strong, not only productivity from a dollar per sale standpoint, but strong productivity from an operational standpoint as well. We're not, we're not a company...

Speaker #1: It's relatively constant , so we're constantly weeding and feeding . And so it also leads to very strong , not only productivity from a dollar per sale standpoint , but strong productivity from an operational standpoint as well .

Speaker #1: We're not we're not a company . Some of our competitors , when I hear they have tens of thousands of SKUs , it that gives me hives .

Tarang Amin: Some of our competitors, when I hear they have tens of thousands of SKUs, oh, my God, it gives me hives. So we have a very, very tight lineup, which actually is very friendly then, too, with the overall model we have of how innovation connects with our supply chain for the best combination of cost, quality, and speed, and the high unit volumes that we're able to generate through that, helps kind of. There's a great flywheel of how that continues to propel the overall model.

Speaker #1: So we have a very, very tight lineup, which actually is very friendly. Then too, with the overall model we have of how innovation connects with our supply chain for the best combination of cost, quality, and speed, and the high unit volumes that we're able to generate through that helps kind of a great flywheel of how that continues to propel the overall model.

Speaker #2: So there's been some debate , around the resilience of beauty . And , you know , I think kind of recent results , maybe fueling that to some extent .

Sydney Wagner: So there's been some debate, you know, around the resilience of beauty, and, you know, I think kind of recent results may be fueling that to some extent. So how do you think about the category health today, and where do you see the strongest sustained demand signals?

Sydney Wogen: So there's been some debate, you know, around the resilience of beauty, and, you know, I think kind of recent results may be fueling that to some extent. So how do you think about the category health today, and where do you see the strongest sustained demand signals?

Speaker #2: So, how do you think about the category health today, and where do you see the strongest sustained demand signals?

Speaker #1: Yeah , I mean if you if you take a look back , I mean , I think we showed this ten years ago as part of our IPO .

Tarang Amin: ... Yeah, I mean, if you take a look back, I mean, I think, gosh, we showed this 10 years ago as part of our IPO. You just go back and look at the S-1 again, I guess, where we have the historical. If you go back and look at a 50-year timeline, if you look at a 25-year timeline, if you look at a 15-year timeline, beauty is one of the great categories in all of consumer. And part of the reason why it's so great is not only is it so important for people, for their own self-expression, their own self-worth, but the consistency over time. You've got a much narrower band in which where it moves. I mean, much higher bands maybe within prestige, where the boom years are really, really high, the low years are really, really low.

Speaker #1: I think you just go back and look at the S-1 again . I guess , where we have the historical . If you go back and look at a 50 year timeline , if you look at a 25 year timeline , if you look at a 15 year timeline , beauty is one of the great categories in all of consumer .

Speaker #1: And part of the reason why it's so great is not only is it so important for people , for their own self-expression , their own self-worth , but the consistency over time , you've got a much narrower band in which where it moves .

Tarang Amin: And part of the reason why it's so great is not only is it so important for people, for their own self-expression, their own self-worth, but the consistency over time. You've got a much narrower band in which where it moves. I mean, much higher bands maybe within prestige, where the boom years are really, really high, the low years are really, really low.

Speaker #1: I mean much higher bands , maybe within prestige , where the boom years are really , really high . The lower years are really , really low .

Speaker #1: But mass has been pretty consistent because this is an everyday necessity for women . I mean , a lot of times people say , oh , it's a discretionary category .

Tarang Amin: But mass has been pretty consistent because this is an everyday necessity for women. I mean, a lot of times people say, "Oh, it's a discretionary category." I don't know the women I talk to; it's not discretionary for them at all, and especially at our value proposition, right? So I think we'd be more in danger if we staked our entire company on extremely $50 and above price points, and there's only a small population of people that can afford it. Anyone can afford e.l.f. And in fact, more and more high-income consumers are choosing e.l.f. because they're recognizing that the quality is actually better than prestige at a fraction of the price. The values that the company stands for speak to them.

Speaker #1: I don't know , the women I talk to . It's not discretionary for them at all . And and especially at our value proposition .

Speaker #1: Right. So I think we'd be more in danger if we staked our entire company on extremely $50 and above price points.

Speaker #1: And there's only a small population of people that can afford it . Anyone can afford elf . And in fact , more and more high income consumers are choosing Elf because they are recognizing that the quality is actually better than prestige at a fraction of the price .

Tarang Amin: Anyone can afford e.l.f. And in fact, more and more high-income consumers are choosing e.l.f. because they're recognizing that the quality is actually better than prestige at a fraction of the price. The values that the company stands for speak to them. I mean, you know, we often don't talk about it, but it's not just the premium quality at extraordinary prices, it's also the fact that we're double certified, cruelty-free by both Leaping Bunny and PETA. We're vegan. We have our own e.l.f. clean standard that we don't formulate with over 2,100 ingredients.

Speaker #1: The values that the company stands for are . Speak to them . I mean , you know , we often don't talk about it , but it's not just the premium quality and extraordinary prices .

Tarang Amin: I mean, you know, we often don't talk about it, but it's not just the premium quality at extraordinary prices, it's also the fact that we're double certified, cruelty-free by both Leaping Bunny and PETA. We're vegan. We have our own e.l.f. clean standard that we don't formulate with over 2,100 ingredients. FDA only, I think, bans 11 or 13 from cosmetics formulation. We're the only beauty company that's Fairtrade certified. And these things, the reason why they matter, people sometimes wonder, like, why? How are you number one with Gen Z, Gen Alpha, and everything? We always talk about the marketing and everything else, but equally important is the fundamental values underneath that, that really appeal to people. So with e.l.f., there is no compromise, there's no trade-off.

Speaker #1: It's also the fact that we're double certified, cruelty free by Leaping Bunny and PETA. We're vegan. We have our own e.l.f. Clean standard, that we don't formulate with over 2,100 ingredients—the FDA only regulates a much smaller list.

Tarang Amin: FDA only, I think, bans 11 or 13 from cosmetics formulation. We're the only beauty company that's Fairtrade certified. And these things, the reason why they matter, people sometimes wonder, like, why? How are you number one with Gen Z, Gen Alpha, and everything? We always talk about the marketing and everything else, but equally important is the fundamental values underneath that, that really appeal to people. So with e.l.f., there is no compromise, there's no trade-off.

Speaker #1: I think bans 11 or 13 from cosmetics formulation . We're the only beauty company that's fair trade certified . And these things , the reason why they matter , people sometimes wonder , like why ?

Speaker #1: How are you number one with Gen Z? Gen Alpha and everything? We always talk about the marketing and everything else, but equally important is the fundamental values underneath that.

Speaker #1: That really appeal to people . So with Elf there is no compromise . There's no trade off . I can have the best quality and I can feel really good about the formulations and what I'm putting on my body .

Tarang Amin: I can have the best quality, and I can feel really good about the formulations and what I'm putting on my body, and that's a winning proposition, and that definitely has durability as we go forward. And we're going to continue to be led by the community, depending on what's important to them. We weren't always cruelty-free, we weren't always vegan or clean or Fairtrade certified. These are values that are important in our community, and you're going to continue to see us be at the forefront of making sure we are their preferred brand.

Speaker #1: And that's a winning proposition, and definitely has durability as we go forward. And we'll continue to be led by the community, depending on what's important to them.

Speaker #1: We weren't always cruelty-free. We weren't always vegan or clean or Fair Trade Certified. These are values that are important to our community, and you're going to continue to see us be at the forefront of making sure we're their preferred brand.

Speaker #2: That's great . So with our last couple of minutes , I just want to give you the floor for if there's one message you want investors to take away from this conversation about your confidence and where the business is heading , what would that be ?

Sydney Wagner: Great. So with our last couple of minutes, I just want to give you the floor for if there's one message you want investors to take away from this conversation about your confidence and where the business is heading, what would that be?

Sydney Wogen: Great. So with our last couple of minutes, I just want to give you the floor for if there's one message you want investors to take away from this conversation about your confidence and where the business is heading, what would that be?

Speaker #1: I would say consistency. I think it's so easy for investors to get swept up in what's going on in the market, what's going on in other companies, what's going on in a weekly scanner piece.

Tarang Amin: I would say consistency. I think it's so easy for investors to get swooped up in what's going on in the market, what's going on in other companies, what's going on in a weekly scanner piece. If you look, and I think we'll highlight this a little bit more at CAGNY next week. If you take a look at the arc of any company that you want to compare against, on multiple different dimensions, the consistency of performance for us has been great. And we've had volatility. You've had the ups and downs, you've had things people have been worried about. I remember the first tariffs came out in 2019, everyone panicked, like, "Oh my God, what are you gonna do with 25% tariffs?" We navigated just fine.

Speaker #1: If you look, and I think we'll highlight this a bit more at CAGNY next week. If you take a look at the arc of any company that you want to compare against on multiple different dimensions, the consistency of performance for us.

Speaker #1: Great . And we've had volatility . You've had the ups and downs , you've had things people are worried about . I remember the first tariffs came out in 2019 .

Tarang Amin: And we've had volatility. You've had the ups and downs, you've had things people have been worried about. I remember the first tariffs came out in 2019, everyone panicked, like, "Oh my God, what are you gonna do with 25% tariffs?" We navigated just fine.

Speaker #1: Everyone panicked like oh my God what are you going to do with 25% tariffs . We navigated just five . Pandemic happened . Everyone panicked like oh my god , this has got to be terrible for beauty .

Tarang Amin: Pandemic happened, everyone panicked, like, "Oh my God, this is gonna be terrible for beauty." We did just fine. Post-pandemic: "Oh my God, everyone's back, and, you know, people have money," we did just fine. So if you look at every single core, kind of the inflationary pressures after the pandemic, if you look at each of these core areas, I've got a lot of investors, I said, they go like... I mean, number one thing I get is, "Oh, man, I missed it. I missed it at this page. I missed it at this page. I missed it at this page." And I get the fear, but, like, look at the consistency and look at how much white space we have ahead of us.

Speaker #1: We did just fine post pandemic . Oh my God , everyone's back . And you know people have money . We did just fine .

Speaker #1: So if you look at every single core of the inflationary pressures after the pandemic , if you look at each of these core areas , I've got a lot of investors that like , I mean , number one thing I get is , oh man , I missed it , I missed it at I missed it at this page .

Speaker #1: I missed it at this page. And I get the fear. But, like, look at the consistency and look at how much white space we have ahead of us.

Speaker #1: And , and it's a much it's a much more robust company than where it was 12 years ago . Six years even three years ago , the strength of Elf brand , both in color and skin and how much white space we have in it , the strength of natrium of road and what we can go do .

Tarang Amin: And it's a much more robust company than where it was 12 years ago, 6 years ago, even 3 years ago. The strength of the e.l.f. brand, both in color and skin and how much white space we have in it, the strength of Naturium, of rhode, and what we can go do, I've never been more excited in terms of, you know. And in fact, I'm 12 years in, every new candidate I get, I always tell them, "Oh, my God, you're joining us at the exact right moment because we're just getting started." And we fundamentally believe that. I know Mandy believes that as well. And so that would be the part which is try to see past the short-term fear or whatever else you guys are worrying about, and do your job.

Speaker #1: I've never been more excited in terms of , you know , and in fact , I'm 12 years in every new candidate I get , I always tell them , oh my God , you're doing this exact right moment because we're just getting started .

Speaker #1: And we fundamentally believe that. I know Mandy believes that as well. And so that would be the part which is to try to see past the short-term fear, or whatever else you guys are working on.

Tarang Amin: And we fundamentally believe that. I know Mandy believes that as well. And so that would be the part which is try to see past the short-term fear or whatever else you guys are worrying about, and do your job. Take a look further back. Take a look at, like, what actual white space we have ahead of us, and what are the real competitive areas of competitive advantage and how durable they are, and you'd see that ours are pretty durable.

Speaker #1: And do your job. Take a look further back, take a look at what actual white space you have ahead of us, and what are the real areas of competitive advantage, and how durable they are.

Tarang Amin: Take a look further back. Take a look at, like, what actual white space we have ahead of us, and what are the real competitive areas of competitive advantage and how durable they are, and you'd see that ours are pretty durable.

Speaker #1: And you'd see that ours are pretty damn durable.

Speaker #2: Well , that's great . Well , thank you both so much for joining me . This was this was fantastic . I really appreciate the time and hope everyone has a nice long weekend ahead .

Sydney Wagner: Well, that's great. Well, thank you both so much for joining me. This was, this was fantastic. I really appreciate the time, and hope everyone has a nice long weekend ahead.

Sydney Wogen: Well, that's great. Well, thank you both so much for joining me. This was, this was fantastic. I really appreciate the time, and hope everyone has a nice long weekend ahead.

Speaker #1: Thanks so much .

Tarang Amin: Thanks so much. Thank you so much, Sydney.

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