e.l.f. Beauty (ELF) 5 Nov 182018 Q3 Earnings call transcript

Greetings, and welcome to e.l.f. Beauty Third Quarter Fiscal 2018 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Allison Malkin, ICR. Please go ahead.

everyone. afternoon, Good joining for to e.l.f. discuss Thank us you today results. Beauty's third earnings XXXX quarter press A elfcosmetics.com. section Relations copy release available of today's is in the Investor of recording for be will the days on elfcosmetics.com. A available of call XX also

may and reminder, year management's and statements, XXXX subject on are including outlook, a are projections. to relating that actual known may estimates implied and differ today's and differ filings. materially. beliefs this those results press statements uncertainties, are SEC and actual from assumptions, forward-looking factors to As that unknown therefore, contains by the based those results Important and expectations, risks such These detailed release call cause expressed or company's company's forward-looking to the statements in fiscal

includes reconciliation management us of the Chief differences presentations and John Chief the on you most GAAP Executive presentation Bailey, presented Officer; directly refer and We non-GAAP With Tarang addition, a and the a today's from basis. company's press for comparable Financial today Chairman and to President are today information Amin, between Officer. the release non-GAAP In measures.

performance today's my guidance. will call, business financial the and It John to For will the our discuss is discuss actions. now call turn pleasure then to context over Tarang and Tarang.

afternoon, Thanks, good Allison, and everyone.

channel, expectations and third results were balance specialty by timing and earlier of the driven confidence expense the reaffirm were in our quarter our growth of Our Target sheet ahead quarter shipments and the at for XXXX guidance. the Results strong disciplined holiday management. in

initiatives obviously shelf now trends items; XXXX. we focusing strategic believe positively during and fiscal we and the e.l.f. key these initiatives business brand; that will improve made share pursuing increasing optimizing talked aggressively in call, X last our XXXX on progress I'll we investment As track impact the sets. channels: to on to are

behind is focus investing more the first brand. Our

approximately level a sales. X% this We a love, and done we've investment enthusiasts built marketing have beauty of at of brand that net

in marketplace. time the believe noisy a invest We continue break more right it's in the to to through brand to

strongly You'll also awareness-building the see markets we're focuses the detail to largest extraordinary investment. an that the in we disciplined on mass additional consumers. We in digital phase resonates testing the test-and-learn XXXX brand select to ROI-based to across this help marketing results to savings quarterly expect during and In regional which value and offset this is and are be that more provide started next plan enterprise campaigns with that with consumers third franchise. our the test the on us on approach we programs cruelty-free, XXX% proposition high-quality quarter, bring of pursuing our into preliminary our fact call that e.l.f.

second greater key of Our items. focus area in on emphasis putting

launch as speed. output items in year as differentiation We over per have XX and and fast We innovation, weeks. real XXX

While our and behind XXXX, front half we're product also our bring Magnetic collaborations behind opportunity media only social the The in investment integrations of through and become this modest, integrated items. saw product-specific TODAY Mask on some an we're product proposition. This third product. market influencer high-quality to a top Prestige encouraged including a thing key quarter, the out put in tactics is effort Mask. We've quarter, Show quickly other $XX messaging, of is a leading the of was proud example introduced other this of extraordinary of to $XX similar our have and quite national PR, including our best The mapped greater retailers. Magnetic great Shield innovation we feature with In the activations to already our like value capability, integrated the Beauty we one items. items. an product we focus In leverage

A retail. major at initiative assortment to optimal getting package Unicorn. elevates product, is is improve initiative that Project at and major initiative that this been presentation is This we help brand when a retail and colors. black expect packaging the began XXXX improves We've larger key navigation. larger planning we shelf putting productivity third XXXX, Our eliminates significantly of our and Project in e.l.f. our predominantly that footprints, initiative componentry into highlighting premium noticed sea black select on sets. Unicorn retailers became since packaging outer these changes a and and SKUs,

existing is space. of it fit benefit with product major allows this us project Another to more an

on every showcasing these expect In one Based We space in we like our signage, categories major key at and or of and maintain brushes planning XXXX Ulta to Target, will retail also Walmart accounts. QX, leadership in other XXXX with and our designs for also have primers. we grow our finalized Beauty. improved planogram customers, our

Let tell you me why.

First, brand at Walmart, is e.l.f. the Target cosmetics. most in and both productive

one Second, to on turn make outlook confident these X year. to our continue attractive and for we our valuable mass profile, I'll strategic site and Last, over to our believe it e-commerce relative partner productivity retailers. our to John summary, financial national we're number consumer focused in our cosmetics we're to e.l.f. our remainder powerful from innovation still at retailers. major growth the drive aggressively business insights generated are results. now under-spaced a in to In strong the discuss pipeline initiatives of

Thanks, Tarang.

better ended timing call, quarter, decreased than last which third expected. our we up This million. XX% earlier Target due portion shared of part our $XX a of program, is in expectation holiday during to sales net shipping than For to the the

customers as a changes increased of the of by third mix CVS. offset as Gross in exchange As XXXX quarter and margin customer innovation, shipments discount pipeline well margin-accretive XXXX, quarter rates partially XX% in a Walmart very a to and QX the from movements foreign and significant to prior result primarily from was reminder, certain in XX% benefited unfavorable year. of channel versus to strong sales as

in $XX.X in $XX.X of third Adjusted to net continue income quarter $XX.X versus $X.XX Adjusted to adjusted On was $X.X diluted an XXXX. per EBITDA We manage XXXX. million of million our QX proactively $XX.X the was million or million was SG&A of compared structure. expense million. the flow basis, to over balance first cash compared million our share operations, In X share last $XX.X in XX, weighted we from bringing cash of million on count million based months year. fiscal $XX to million $X.X a September as XXXX, average XXXX, XX.X generated of diluted

We $XX.X management, our million million with $XX.X in year. inventory to are million QX quarter-ending pleased with $XX.X balance of the and compared last

through income to in low the net EBITDA, adjusted the single guidance Implicit Turning is end X our to EPS. low performance the we range year-end. months, data raising guidance adjusted and for diluted that our declines are Nielsen on of of Based sales the assumption outlook. first reaffirming our operating and show adjusted continues net digits through

specialty the well announced on channel XX% in as indicated, we pipeline Trump XX% last of Rite XXXX China, to XXXX. a offset help our to expansion previously in further tariff expect in the for administration from As Since the call, these Aid imported escalating cosmetics as growth majority declines. potentially

call As ask already assortment. a actions discussed, of selective the questions. benefits, These through of like mitigate to we subset to the pricing our actions partners. impact FX have I combination pricing tariffs would our the been for retailer a communicated on of vendor to to the open expect operator now concessions and

first line Our from from comes Instructions] question the Chappell SunTrust. of Bill [Operator

would was gross can One, adverse any start helping kind in can I see And you guess, that I FX how gross thinking quick see on if understand then you margin. or color signing marketing or that what where that? more to of done affecting can of be Maybe question you've can help FX new we on give kind also, in working? terms influencers that's of margin. we

Sure. Tarang Hey, cover and And the it's it the turn take to piece. Bill, marketing first John. I'll part to

in RMB the correct, to last good the advantageous seen months. move that So the few over U.S. you're have absolutely a we dollar

get take The important as P&L those note is their to and taken sold. you that of work the obviously, then will, to way comparability into through is inventory XXXX when inventory note thing costs the

into where So of year the effect year. there extent, to have last would lag as to rate some a that quarter, sat next to now bit of would headwind. this right versus a And expect be that and we is relative a

as what collaboration in that front And then things influencers question, one the on of I'd Bill, you your the kind Ulta regarding influencers that - $XX. inspiration did quarter, is gloss, marketing, was us as third style influencer tell we of of I on a blush, we've the New that matte second basically this where on line. edgy and we we a it events, coming metal collection, called our both an well this elfcosmetics.com was What texture. It's unique competition developed particular actually product palette, the entire of collection out palette, Orleans. Modern Metals. is think, pretty kind highlighter with had big of one our had lipstick. Beautyscape of was influencers, In a a amongst design it from lip on a about group an eyeshadow stems And We introduced one, collection help of to costs Beauty. And the

on early, few two While it's item our elfcosmetics.com. first already number in the weeks,

something influencers against of an with of doing products. it's a of So group example different bit a set the

as we also be terms ramping talk as on we're of might as in of we're in call what able sampling. addition, that to XXXX. in seeing In to mean these in said testing and you terms test-and-learn We'll next remarks, awareness what the tactics our well prepared in up

one just then follow-up. And Okay.

further any you with As year coming next pricing thought what need in - mean, tariffs are I may you look or and looking into? towards with

it's John. Bill, Yes,

that thinking the beginning picture for go mentioned in table XX% the obviously, have effect that's at as already into the the XX% year. effect next So on obviously been and of commentary, went into we we tariff time, about the some to

that Our rates 'XX. question the through Certainly, the FX timing certainly, and really is relative inventory rate where some in one, plan see to I combination to here. we'll mentioned, mark a where XXXX. and things: is real have that a the X heading goes advantaged the we mitigate benefit of from benefit But to stand into

level piece concessions online. our brand. is next our and secured your subset through, on have And And pricing extent question, the assortment. concessions we've third the coming partnerships tariffs Second had long power a concessions, the strategic long-standing the vendor is pricing be already We've that for who a of of of additional selective go to from then would we with. year partners on to us,

tax border lot year a think came the various when into starting ago, a thought about roughly we've pricing play, strategies. I

been sourced you as produced that the SKU and kind in actually else competitive competitive many competitive of know, competitive importantly, relative in-country where items assess Our our sits understanding by to value SKU, where because across also where then, priced, are is and well look items market entire to portfolios what competitively being approach proposition the items has are as are most matrix.

a on of pricing to And assortment, assumptions of extent good subset through, we through. the would taking and about so we went went the very that process some feel the XX% underlying overall be but the

and Our Oliver next of Chen the question from Cowen comes Company. from line

channels. Regarding responding Unicorn Unicorn your customers AUR, it - was communicated of in and be partners, right the help assortments into necessarily versus in Walmart the if would what on terms were that they breadth you your the understand does of and model in depth direct Target, the place are timing time right and And because thoughts on Unicorn how us what were to just helpful. are your some could right how the well and that products evolving to to key at the strategy, - terms hadn't your sell-in own stocked products of previously that the of

Sure. This is Tarang.

of we last products enough into kind these think knew call at in that beats, when our look in the of quite that are in products in ours. products minus was we key the So going customers. well. of of a customers, what of new our Carryforwards down, talked about When modeling and we getting not imperative was our our assortment more balance, have of terms actually you a were the those take new new items we the so

a take to I initiative as started understands us project And think as XXXX, we Unicorn This everyone of do I'll kind what first and our main to We customers also an kind space. that. in is Project described with of more rewarding couple is. not up. really of started it really back working that minutes just Unicorn stemmed

looking that we One sea great things much looks larger the elegant we packaging was in black of started so that set of smaller a have that the a black in like noticed sets.

under of Unicorn initiative how even then that the customers we began help product the those a So shelf. big we you you'll how sets as And do do better. benefit more of hear, was navigate get of also

of to the go not brushes, which is we number its in take use. getting packaging patterns Unicorn. premium out componentry We shelves we're a we so to as in to product of our either black number in particularly people a of showcases would on it black take in pickup allows And a took Walmart, design investing colors existing foremost, What that of through. packaging. also like approach is, the our number allows other have. of a outer more our And help that be and segments we we but components unique is one has that a us the out Unicorn, space. in on recently the retailers, shelved has, like pegs it improved packaging, is Target submitted to products for benefit it efficiency is But primers first key key products XX% only it here lot benefit those The or that allow signage, one it our the and much us will navigation, is some as e.l.f. in of that big put as our the some

Unicorn, completed planograms quarter recently and drawing in So we hit shelves of kind Unicorn Ulta will timing really of Walmart The the Target, first Beauty. in terms the XXXX. of of for

to So call, good Unicorn's able of rolling terms pick going in during have as items in to additional how well to be put provide of into our up case, we that able many in some we'll that the set terms SKUs can more our But every new as be how news for be those stores. out. and do we're able get designs we is, confirmation perspective next to

to what track factors you're are sustainable as growth visibility monitoring Okay. positive And in like or when market well relative - - market and terms the is the when like influencer on feeling initiatives and the growth? market look revenue you step key the back, Or own your at of are you consistent you as for how cosmetics or evolving? towards you're

confidence finishing XXXX Obviously, in the John. it's this to playing we're think about Oliver, out a guys and in how Hey, beyond, what we've see on kind see continued areas our addressing together we're a of with Obviously, bit everything about the growth we talk of strong position here. next kind year year, we next little And when we next I assumed out call. a as think make comp up highly Obviously, for is you other much year the we're want better very be for bring we've us, focused can of quarterly talked channels. where in sure to that expectation. continue to on few our to about track good growth, to the can that seeing but specialty, we parts business, cycle which including

Okay.

last, Just a question. product

of on envision you where do you'll think articulated? you platforms in kind right you and what the As terms about key that to the focus key the undertaking next of items to amplify, as strategy simplify

Yes.

key positioned the for highlight. line and to Oliver, about results. we're last we're make A of Obviously, us, we where of goes. I'd of it things years in lot This confidence terms couple is innovating our skincare of our really sure well that couple in of segments a have great is a all across For the consumer was line. introduced seeing and hope

our was about on talked things items of integrated how one the really in One we key popped top the Magnetic be items. to focus of Mask behind

that across skincare, allow the segment on skincare. face, eyes, seem the and And and early we're lips, to which days, so out would any one range, you'll focus tools to outside item see key of that across not still

have tap those just we of each continuous Prestige great making those on Lipstick, innovation and key-segment Liquid And our Sheer a it's sure around product of frankly of each category, last to our stream areas A that are for. example from is on areas. $XX. or focus we've this in to consumers compares focus been You'll what see another looking example quarter, at get key being this we item into $X of Matte this

Wissink line Jefferies. Stephanie the question from of next comes Our from

questions, three and have or you. I housekeeping Tarang, either for of John

us The key your just mix you percentage give first of a the of is today. if sense as a is can proportionality what item

So today? items, lead your your so primers, if represent you percentage do key total generation at of look brushes, those what sales

key haven't you about talked America's Steph, at, look number take that. I percent is few those look items of of new So with last some we looked at X it's the America's item launched strengths what innovation, we is, some from number come you of disclosed, metric kind typically one brushes, years, e.l.f. percentage of way reasons that kind if pretty sales item of at we the starting high for what well, have key it the of historically competitive focus, from an have this, kind primers. in tell our also what We've on - of What the I within key we segments, on Xm that our The a can and standpoint. we represents. the

we that both use ways the and in terms so then the that of of the of cores segment terms matrix cores what in are what kind within And news the are dimension our can it thought to first key are by we looking some focus. call to the next for. if want consumers item and put break into we out add But more

quick really two just then ones. And

holiday what of set Have John, terms be model was. I'm to then, original sales to the the mentioned as plan spend? X%. take versus quantify Target willing you percentage in in and And if support You this willing wondering would your just that how what you're about your talked marketing pull-forward could around a you high year marketing of

up around we'll both. been those Obviously, as into But out the call confusion competitors. not when that of where to we that, more from levels fearful we frame in a the it. Sure, there get to the to bit levels specifics out has Steph. many of last XXXX up far is spend were there to market quarter. in need our spend may do position anything be will we're our levels in taking at about take kind call and next levels fact, a of over time that we the those What talking of acknowledge Yes. I'll a little legacy some go actually of coming close

think in I brand, of very that that incremental and commentary, the would in which long-term bang, expect spend. that the But I phasing it's think as against really ROI-based time on way heard certainly, for is see about so as over big right you versus we putting a yielding spend about the benefits see decision in some think you'll us, to from time. layered over

The XXXX, which would much I be some other to capacity that a better actively our we'll that through also additional into thing number of different to is we able of investments. we when a in be P&L offset those up say, free quantify to get savings able cost focused on to are to be opposition initiatives

come, to we as certainly, your more Steph? So And other go Apologies. over question, time. then

Target on your quarter the on pull-forward set. fall Just in the holidays,

Yes, yes.

million it dollars. a was So few

us mention As of to we the holiday you early. last recall, did on a that ship did program their portion call, ask Target

to quarter portion again As year, exclusively ship ended a in up, we and program asking was call, similar out fourth on go that the were they this early. to us our together XXXX, that, the would last expectation

it a QX from few to was million that QX. So shifted

from next Bonnie Wells Fargo. the from of comes question Herzog Our line

Bonnie. Joe in Lachky This is for actually calling

pull-forward, high QX QX, below to in to with still on do up expect that? So you the just to range? QX, follow could it be single-digit Or fall the growth mid-single that so

we a quarter would of obviously, in, there, would, the holiday obviously, coming moved guidance, just into with assumed I question and you Steph's timing, QX. obviously in Target characterize that have what assume implicit will think of the low that fourth single-digit in Joe, bit I some would

reduced about see what talked that So amount the the relative by we holiday shift. to that you last call, on of may

to plan to you I could makes 'XX wanted That Okay. know to guidance comments looking don't if you when February. But said last forward, your I for then expected see build you you into give fiscal be sense. quarter And until on you I And next year. low-growth to wondering that there be the especially expected if fiscal to still 'XX was year. seems since guess case, I several looking that be positives a

addition Project advertising the and easy you from the In Unicorn. benefits got to comps, stepped-up

a So little maybe on longer-term if you elaborate kind a outlook. bit could of

but which add Joe. nothing in that be areas quantify to some a Yes, in of we'll Unfortunately, we're forward be to said, able few to when very to mentioned. already what we've And February. you different looking together focused

next of Erinn Our question from Piper Jaffray. comes the from line Murphy

couple of questions A me. for

your given market so hear in didn't there I the remarks. that growth any help the talk U.K. quantify just you just kind for performing? And prepared international. about on of during it's sellouts are U.S.? give you the on maybe First, much how its versus is us Can trending brand, in phase here updates how earlier

Tarang. it's international about Erinn, feel Hi, business. Sure. We great our

into specifically, top Superdrug know, we portion QX, launched of In as on Boots, you online as stores. now in We're both a actually their good as we So XX doors. in entered their well year. U.K., last of the

of more expanding as going call we're through a talked then of of making We you, So well. And international, really had versus brand combination direct and see kind from so it's out the there. direct the caboose great really Boots tell of in our we're headed. and business going and is I U.K. key to two that good the accounts, would kind rollout where in a particular some of things. both we've and terms starting terms strategy of retailer distributors. about it's accelerating we our of kind Germany success in test of where much along broader One feel is to last proving e.l.f., move we very in

from ability market certain example a bought lot call very the similar directly. distributor when we intensely to The go U.K.'s our in that but have with our some Boots. do into of have spent years We and about now there to best a what where changed probably Superdrug. for of time, for our believe, distributor ourselves. we going to by company entry handled We ago, so X.X, be directly set see, far, That, particular like it the to kind X we good able X unwinding we to we just it, business more ago, a distributors, Superdrug relationships groundwork the I'd years e-commerce

so really much And see, efficient relationships to certain grow happening and more as concurrently, we strategy, international. you model international part of both directly, which continue distributor intensely going very us and unwinding to scalable see for is a

And then just two clarifications.

and of about product think of pricing, into the on of kind pricing kind you're said next the Just year, post you tariff, kind portfolio. across select as XX% tariff taking you

You've talked is And to neutralize fully bucket should you we the increase? anticipate that. pricing? you about a pressure taking much that are tariff? how the can't some enough neutralize average, to kind On of your XX% retailers margin at Or of if

a on of assortment. is it the Erinn, So subset

just really than a SKU-specific. So to obviously, that, finer it put on half, is and less point

our So process proposition considered did value to what really our again, competitively the by and else is what there consumer. is and item go out core item

tariff of So is to February, together of does item competitive the able be next your puts the on we'll pricing will in kind and overall. assumption while To our that question, the matrix offset we're vary year. when able quantify takes XX% that be to we the amount impact really of entire and depending

changes question, now versus timing major years. later these for then in little can most I resets any from last in there of bit retailers when just XXXX And the retailers, think are about just change think see we Walmart just what terms as a XXXX? was recent in XXXX will Okay. you

the curious the year. into throughout on about balance product and just you're we So of how the quarter as next go fourth fill thinking

Yes, year I what when believe now we it's is will similar we've pretty terms to in this what resets saw - happen. of timing right seen

same So the Target's or week as to Rite Walmart's they're changing that much going Aid's same and year the fill well. pretty to in fiscal their stick over.

if shifts in any see big later. we sometimes you'll of - think years don't earlier between our fiscal I from goes or said happen expectations terms So could in that somebody

from Our of next line the question from JPMorgan. Andrea comes Teixeira

you first, on questions about spending here my is Can the decline? also This the So quarter declining. terms year-over-year. you of and second see next reinvest are, down talk Do a the going thinking drivers in spending the I being basis? for have SG&A SG&A SG&A to of are And question. or more supportive we follow-up into the is will So year, a in need infrastructure percentage forward? on resuming growth you the absolute that

So a spend within Andrea, obviously, quarter.

So that we've in than too of an overhead tough kind to with management had, areas expense unpack much other pleased to say quite certain the disciplined control we're like that as example.

about kind of support, the moving we talked a think that levels, of pieces that else in offset quite that think as about I we're but about next investment investment bit kind we've series year As the two of major help that are to currently increased nothing well brand which point you would initiatives to. savings I pursuing we're excited cost the quite that an as spend, is

you're a into basis saying still probably total, - the is Or the quarterly the you're you you're so like spending, But quarter. Is conclude? XXXX? that Yes. you're support saying, what might a shift have right to now happy of total into as we it growth as fourth on should level

Well, as the levels we do just throughout seasonality, case was spend business, XXXX, in you'll have do given than other quarter the note, in the quarters it any year typically the as as dollar year. pertains of we in to fourth our in higher

guidance that implied what's the more other other specifics our in won't for just typical by provided provide I than that today, than we So that's business. pretty been

offset cost point about, would and enthusiastic I then investment to being areas think I again, forward, brand which just spend. Going to that we're support, savings help

everything increase? and it tariff Right. XX% enough seen from the tax will concessions, you've with And the pricing tariffs, discussed the the then on vendors, offset to be changes

points be We'll that, to to correct. in will on That's provide position but is belief finer we currently, able our impact. a that be offset

Our from the Bolton-Weiser Davidson. from Linda line of A. comes D. next question

the predominantly over that fourth of quarter, there, terms the in Aid the is done quarter? of completely of first will in growth to some sales. Rite that fourth XXXX? Is go growth So the expected that Or quarter seeing we're the channel fill be expected into

Linda, Hey, it's John.

Rite fourth quarter, think specialty be X including of that the movers as for our point things the expansion I would the growth well Ulta, I business, for as major pipeline would So as growth in business. in to a 'XX, that kind fourth question, pipeline spillover we'll no - have core into the will will out To QX perspective pipeline replenishment the from so in certainly, Aid. go of quarter, though your the

performance, bit customer believe about margin you the just the Can mix rank in what a more? Like you a positive when gross elaborate was And talked factor is quarter. said order little then I you customer mix? the how should represents specialty little give just can us versus you're assume mean, I But I mass we for more mix of understanding - a positive you what drug of international. versus versus you? that talking

to yes. last quarter, to note can, finer sure relative year. I I'd biggest this discounters one in sales Yes, the a comparable to put the on point particular And say, it, have to been would

were so the of year, This basis. highly QX which QX, 'XX have from did every have relative players we sales on do happen remarks, those in customers, very our and to we business. significant concentrated through They small in recall, sales our third be quarter. just you'll As in to year the discount a each

Mix certainly, And Sweeten well. some from so to, mix biggest were the as though that I would point that have probably that also far item the in and we there benefits was away,

better actually worse, down you've How think baking about Okay. said the originally the finally, Nielsen of about I'm then you kind versus are remembering, you XX% plan, in that into had were things in if or so, half. the tracking or same? I what figured second POS being And

Yes.

last that a little throughout of would the throughout that guidance, the down basis to, sort assumption in assumed actually on are on be of half that. is XX% in we that better balance XXXX. the quarter, The average the So continues an pointing Obviously, that we're bit last than Nielsen only the be negative to year. the seen call, Nielsen implicit back prints of you've

that has today. been guidance the may merchandising get timing little incorporated some we you fact, reaffirmed the In due in of see a just worse but to bit programs, it just

comes line [Operator of Stifel. the Astrachan Instructions] question Our from Mark next from

question Chamberlin Mark. Claire actually is is on on skincare. for This A

of which if And deceleration and Just skincare, think reiterated the seen that more to there of have in so, channels like also what the strengthening success any And your are call? test makes excitement sense, skincare channel? market. given offsets there track traction But we last mentioned about you versus overall other data? definitely contributes you the some we and why

is This Claire. Hi, Tarang.

confidence the fronts. So in some of really X comes

as I on track look a pieces. some I So that out-of-stock may our on quite display not issues fully Walmart, look of other we've At the following channel our I of through piece, looks take permanent of sea particularly kind than strong, as Magnetic data, had be kind Target the kind of Mask.

that's the clouding know don't any skincare kind I if So of of numbers.

on our planograms, We they're quite tested then have had set. can fewer of a - you, Beauty Ulta because as items I revenues. really, on the track we've skincare we the And than in bullish skincare outside on see channels, few skincare But they well. when tell just

and their subset we've well been this we've little decision think, the skincare testing they that make skincare. on I in. tested doors will a doing of with have year, So we later been And and bit quite

even to see our talked else very So focus days and the go about the see strong in Still in then particularly coming. in key put we we some against that. own pipeline up of of second, of as our drive as anyone would skincare, And that skincare go things kind always kind ability much earlier forward. that pipeline I overall, I early and standpoint, very terms direct channels, a from within our we to the core item trend on of really look I back we results

end Ladies we would for I the to of question-and-answer have and closing the gentlemen, Amin reached remarks. turn session. And the call to Tarang back like

on items we'll our of our brand, - call, on you forward initiatives growth to you in quarter. and our next in the for updating the We're invest outlook again on of focused our our in to look in more Unicorn. integrate the and key thanks retail remainder Project year. joining the aggressively to Thanks, assortments efforts initiatives Well, next see business us. We our drive behind comps for improve the and

today's concludes conference. This

at this Thank time. your disconnect may You you for your lines participation.