e.l.f. Beauty (ELF) 8 Aug 242025 Q1 Earnings call transcript

Thank you for joining us today to discuss e.l.f. Beauty's First Quarter Fiscal '25 Results. I'm KC Katten, Vice President of Corporate Development and Investor Relations. With me today are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer. We encourage you to tune into our webcast presentation for the best viewing experience, which you can access on our website at investor.elfbeauty.com.

could remarks release forward-looking the forward-looking and you'll factors our to please SEC, statements. of to find earnings results our reports that many today from statements, contain refer where differ Since materially actual these cause filed with

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

Tarang. most turn reconciliations measure. With GAAP contains release between the earnings comparable over the differences the let directly me non-GAAP Our of presentation webcast to and the that,

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public for grown growth: X growth color cosmetics; and runway only out of care; that We've companies continued international. has quarter. per X We're at least XXX areas X for significant with of quarters straight sales XX consumer averaged XX% to and prioritize skin

our XXX was color category. compared in progress as XX% increasing In In category tracked grew our cosmetics, Cosmetics outperform a continue e.l.f. in on you to X%, QX. market update basis me that QX, to we by Let significantly points. the share down channels

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to Turning international.

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through each. Let a to moment me take you walk

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Our advantage innovation. third area powerhouse our of is

twist at value. adding bringing franchises Our and innovation extraordinary Grails, Holy and e.l.f. is community to in best behind from our market on taking focused products approach our our inspiration building them the prestige, an

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launched category than context, $XX. share a item to QX, we value have Soft less we For prestige compared the the In as foundation, have Satin a incredible share XX% Foundation, at U.S. $XXX in compared across priced we in Glam to cosmetics, of an a X% $X of million

[Presentation]

wash. product in products the innovation of about unit We're body sold oil. our XX The recently Foundation just to days in launched also Getter site million restocked mark. first launch on to Glam Glow million X excited hit approach Getter with sold Naturium bottles was naturium.com under extending Soft Glow QX. Satin We're best recently the amongst and site. best-selling the franchise The out the our we've brand Naturium. was on selling of the X It's launch body the our celebrated on

of engine. area advantage our fourth Our disruptive marketing is

resonance community action marketing end-to-end with stakeholder, our consumer agility product is go points insight the emotional with from consumer to and speed gives This breadth becomes increasing touch Our encompass us. co-creating all essentially a as to fosters structured us purchase. the concept from through organization to brand

community. been #X the a drops, which drops product bronzing our launched have example. recently Bronzing terrific from is requested Our

ever best product into on of Turning passionate action behavior to the We turned for our with please debut elfcosmetics.com. to bronzing consumers accompany launch. [Presentation] launch our the drops peculiar product

XX-minute X In is our XX to record-breaking best-in-class the months output. since Death. parity creating documentary big We relevant a in from a marketing Liquid began, we've a game executed collaboration campaigns with culturally to believe calendar XXXX engine commercial unique

our year, many [indiscernible], Earlier DICK'S media Our garnering campaign, to XXX% which billion positive approach impressions released sentiment. and transcends deepens love so we product and X brand almost organic purpose. this in

publicly named public drive boards results leaders is companies U.S. out Our Richard, are of rather Consistent than or that these give of and with action that diverse. entire with business positive values, X/X else that to we everyone so bigger X is wins. to to the preach. is Board brand women but Rick voice research practice they We to our Directors only serving Dick found call X/X inspire traded with a least people. to not at on what of company single e.l.f. man names, X underrepresented groups companies our more everyone

launch We've credibility reputation of positivity purpose one among we beauty experience In brand branded the commerce have on key with adding rating e.l.f. purpose-led across to Roblox, real-world our product, test the and world's e.l.f. XX brand the year, the playgrounds experience our visibility among a first became solidified plays. a #X UP!. audiences. and virtual of On million QX, XX% almost as platforms. and results-driven Since and Alpha. Roblox, popular Gen Z last most pioneering

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brand. of Founder the retail change up X area our [ We Program digitally our XX% out insights direct-to-consumer own Squad only E.l.f. fifth Loyalty mass of brand from Our top to site each is advantage ] Beauty cosmetics site. year. and remains their model. is leverage with a assortment our native productivity proactively to

basis years, our SKU count be U.K. the have remained a and led customers doubled approach sales to productive in brand relatively us X Looking we per on both foot has per has at largest last our most This SKU. the retail U.S. consistent, average and dollar our with the

Our Ulta lip been Target. retail and fall body Ulta is brand's as about the In recent be skin, in additional the in We're available full X,XXX CVS. with space U.S. Beauty, outside with U.S., and we'll e.l.f. care. summer spring partners. of a with retailer Walmart, Naturium announced, with rewarded CVS also marking excited the assortment in our game gaining spaces of the in Beauty space Naturium now brand stores and strong across all expansion launch by global first with productivity in the previously has more

Internationally, footprint markets. we our grow existing in continue to

previously we Australia Kohl's, with with fall we'll with distributor in e.l.f. we in space launch recently also Superdrug expanding markets. space Australia. in gaining this e.l.f.'s announced, the channel the this of our international gained the into in U.K. in grocery Mart U.K. and our Boots into marking with first existing reach introduction We As be We're newer Drug the Canada, relationship in spring and expanded Shoppers

our bringing this Europe, our in cosmetics largest to the announced, fall biggest to be in previously with partnership e.l.f. Mexico launching we'll expect with we announce market fall, launch Sephora. be be We're that we'll international As e.l.f. first brands marking is Germany with Germany this Rossmann the e.l.f. Sephora also Rossmann. to excited to launch and date.

summary, Holy our owners a sales and a advantage In asset-light have and us life premium of passionate have globally. industry; points; accessible X delivering best consistently team millions that combination our powerhouse engine, enabled in Grail skin areas unique value with in chain consumers high-performance cost care: disruptive model, delivering of of culture; world; cosmetics to products we to share innovation, people, marketing our activating drive powered at quality, and supply this the of proposition, by around at our an and our retail speed the productivity our bring price

continue industry-leading may each that the forms will it's advantage and moat, to over each our Mandy. strategy, competitive how these brands other of expect our areas now imitate reinforce to turn we to call seek I'll other our they growth. parts of fuel While of

Tarang. cover as now of well quarter outlook our our first the fiscal for results highlights I'll raised Thank 'XX. you, as

of were as XX% sales QX QX commerce. digital results as net by strength quarter on of national driven growth outstanding. broad-based top grew international XX% retailers first across last Our in and year, well year-over-year

contributed to Our to XX points be by with approximately adding growth, which led unit sales mix net volume, continues points. higher growth XX approximately

supported compared by our QX QX digital ago. trends top a our we're social within in on digital up to and over across momentum platforms. as of year drove on program our XX% year. triple-digit were loyalty app enhancements trends QX of seeing consumption channels of XX% The last XX% consumption and year-over-year is in Digital

XX% hit retention have Our higher of over and year-over-year. Beauty growing Beauty Squad purchased loyalists enrollment stronger quarter, source have Squad first-party more this members a order Loyalty Recall, values, X milestone average Program rates our our reaching frequently, rich data. million with

were digital XXX% new We're accounts. with exclusive we Beauty Nearly and product and Roblox, connections with Roblox early unique partners. to to Squad e.l.f. our ever beauty access first ran allowing challenge of those fueling enrollment member within our Beauty Roblox new connect launches QX, Squad In their integrations players squad our members.

to member purchases We community Beauty their and Amazon. Squad for to our new reward expanded continue to on e.l.f. also Amazon fuel sign-ups

compared XX%, margin benefits was approximately QX cost year. costs, by impacts, exchange lower of expected, basis and in offset XX slower up was due favorable gross in higher margin transportation points international margin prior markets, We foreign mix, costs. gross increases better of partially our transportation gross QX we inventory than to from savings part flow-through saw to adjustments. price

reminder, a costs related As to recently. last Red those disruption we costs the rise Sea higher the have continued to experienced of container end more year. at And

in XX% was was expect We The and of benefit to year. we're basis, to fiscal partially driver last to marketing On throughout primary step year-over-year plan these the up increase sales SG&A headwinds margin in a percentage 'XX. investment. adjusted of cost a offset gross transportation projecting as compared an digital the QX XX%

for sales driven year. in Naturium The in adjusted and ongoing XX% investment was team consolidated our in increase 'XX quarter QX and of net continue investments our of of compared by the that fiscal approximately last as infrastructure. SG&A was will and Marketing as through digital well XX% financials to remaining the inclusion as primarily impact

XX% adjusted planned those X% EBITDA adjusted $XX year, was last versus Given QX up and EBITDA net was sales. million, margin investments, of

million expect compared We our the we inclusion as of per income growth per normalized $X.XX $X.XX year-over-year. $XX the ago. accelerate back a was to investment Adjusted 'XX or half to in marketing share diluted net diluted year of or EBITDA Naturium cycle financials of million more into share see $XX and rates fiscal adjusted

flow. Moving cash to and balance the sheet

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

include The our said in is added is of million Our expectations a results $XX was the primarily a when taking now of inventory China $XXX past difference of the consumer approximately quarters, we've consolidated few U.S. levels first, up additional ownership our inventory; from line our continue ending ago. support it Naturium, demand; when three the in of things: of to with million combination our balance to back build inventory million, we here an increase million and year as ships inventory second, the in which lastly, distribution enters from strong result $XX it center versus $XX

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

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

let's Now for to fiscal our turn 'XX. raised outlook

to to XX% $XXX of we now up For net $XXX approximately between the up sales year, EBITDA per $XXX XX%, XX% growth million million, million share, million between $XXX million XX% diluted previously. full from adjusted And $X.XX to expect up to to previously. to $XXX $XXX from $X.XX $XXX Adjusted to previously. from million, EPS from previously. $X.XX $X.XX of net to income million Adjusted up $XXX million

provide color you on our with assumptions line. me 'XX. additional planning top for Let fiscal Starting the with

growth annual to the Our an raised above reflects of be our growth improved the to to QX outlook as balance outperformance net we our the expectations outlook QX, for expect XX% In in sales as year. well our slightly XX% relative outlook.

in half strong tracked at the throughout XX% channels, our net represent expect as would QX base. e.l.f. we compares range in Recall, tracked to channels of we sales. cycle As continue approximately look to transfer we be the

points improved a XX fiscal expect to margin 'XX, of XX be In approximately to outperformance margin. gross approximately largely our previously. as compared QX. is basis we points in up basis outlook gross to The year-over-year now Turning our result

costs the In to higher offset space margin year, terms activity related and and transportation and accretive key favorable benefits rates, expect be the of by puts savings for margin expansion. FX costs partially takes and gross mix cost we from retailer to

due margin costs. standpoint, expansion year-over-year flat cadence timing be in retailer and expect space a of we activity gross to QX, From to the largely

EBITDA. adjusted to now Turning

outlook of prior to to delivered For from now growth approximately year, up XX% in adjusted And EBITDA on year, fiscal strong XXX% the 'XX. XX% the full XX% versus top we growth XX% implies of previously. our

We 'XX. margin marketing of compared continue XX% expect still net to We XX year-over-year. XX% leverage sales 'XX and points expect investment adjusted approximately fiscal EBITDA in fiscal at approximately XX% in of to basis as digital to

of a balanced standpoint, and for cadence planning pace digital a throughout From spend more we fiscal are 'XX. marketing

on marketing approximately last Looking sales as in QX net year. of to basis QX, was a year-over-year that in step-up spend marketing our XX% implies a

the In to addition, invest our acquisition and annualizing we in continue team. still of Naturium are

As we the expansion the in normalize adjusted as realized expect to in low margin meaningful margin in the Naturium be with of of anniversary teens and our EBITDA second acquisition 'XX a in more starting range EBITDA half adjusted October. compares result, we as be QX, could fiscal marketing

category-leading first winning summary, to exceptional, full full to and we raised call strategy for underscore the continue innings questions. our brands. for growth. that, We in early In outlook With a unlocking the of in results potential open to quarter operator, our consistent the reflected ability year we believe you believe may our have the our drive are as

[Operator comes Instructions] today's from Tong question first Raymond with And Olivia James.

wondering I if Congrats on quarter little and the down the you the more, great bit could a quarter. guide. both

plant in sense could Germany? quarter. was half you obviously And this in Mexico by new We how of the prepared some mentioned when you during versus of Walmart that First, that much driven the how distribution you distribution? second us the existing have was if remarks as give internationally distribution of know a into your compares and growth like part new a

consumer, you're slower -- influence that cohorts, how bigger does show amongst [indiscernible] perhaps we're And picture, perhaps? your your the any how whether different your -- signs seeing, in or particularly with growth what guide? then of slowdown seeing analytics with amongst -- challenges and And QX

for thanks question. Olivia, the

of really terms fact raise XX% that up to for saw the net the growth we incredible. also in the XX% to of that of just sales top in we guidance on XX% our delivered able I'm to quarter X, proud So we that were proud the year. super the full growth I'm line,

expansions new of we some We in summer this having out fall. had a looking spring as talked certainly distribution, about. driven more growth by space the look into the as are We we and are number

included is guidance. that So our in

But also we're distribution. our in seeing strength existing

And And well. really that role so a in with as pleased that. play will international to continue

You us growth for to at second well. saw half to into I international the XX% international as out certainly the continue for quarter. we year look growth as drive expect the of

but Tarang. across On would any is this Overall, our they're consumers I -- customers. of choosing seeing e.l.f. particularly consumer all and question we commentary sentiment. consumer Olivia, positioned. more on retailers saw say choosy, all national digital, or would channels, being slowdown our well international your of we're We are some second say that I growth

quite drive remain to ability market as color share, well care continue in both continued to bullish our and our internationally. we So in skin expansion as

going by of or are exclusive, relationships, others? Just go countries? Whether with they talk they helping if markets? specific designing few then us growth, that. And on if are you any the regions be could about and Can phenomenal. opportunities How forward? particularly these you which to up And obviously follow about continues pretty which I the are a exclusive Great. Douglas international understand

Yes.

the build this it to did job, brand. retailers thought in in in be the establishing #X strategy we'll largest customer, our Italy leading Rossmann over about a to We launch a excited with Douglas that in for has doors the with in is is So comes international to retailer cosmetics color help a we're extremely Etos Netherlands. is market Europe. Rossmann Germany. And for really Germany market same X,XXX great the with partner in. when that

of that terms really looks. feel in we how So great

Teixeira comes Andrea question JPMorgan. the with And from next

the conservative more in at tracked I historically that bit was that to you consumption-wise, are the both flow knowing least to I according been don't and July. extremely through growing all and you a hoping XX%, see little the from guide. in channels faster, QX. growth Nielsen to grow -- to hear tracked you've internationally But XX% on of and understand channels

potential diluted, if I impact you your And that, increased we on that anything be explain how to only of is you investors was across you've that been tariff points price you the help points price inform be and if top is to -- attractive that a of given the there would to noise in your on lot to very increase able of -- should anything, like explain, points. gross can that shipments would large of be you So price on keep and see [indiscernible] So historically, how And if should just of -- your then at prices deceleration? if and aware help can anything a in $X. level? consumption a there shipments, usually your you still terms and timing is points strategy prices trying increase, and margin, tariff me those investors $X.XX two explain

range question. on XX% that the Absolutely. the XX% said I'll the be our we take slightly to actually year. we that Andrea, QX for On outlooked expect we remarks so prepared QX, above to first

So outlook, know And great we that when better we expect typically a we do guidance. to which our QX balanced annual to about. feel take comes it than approach our you be

we always about, And very great feel want pleased our something of we in we're that digitally, out put those mentioned are our So internationally, retailers what that to of balanced with all on out call. approach. there seeing the we we

above So our take there. momentum QX be a range, it continue that to annualized bit from have think we'll there, and expect to we little

second take tariffs on tariffs. Andrea, or I'll question potential your

FY long just if not flow for through. would it how all, inventory 'XX, given to it of takes First tariffs, there impact were

really an is this So 'XX issue FY potentially.

we did And so in our what XXXX. to approach similar very is

help use to a that supplier price concessions address If issue. you be FX increases, faced able recall, We tariffs. select from we combination of tariff in to and XX% XXXX,

as As XX% rumors high we've as heard we tariffs. look forward,

if tariff, So we pretty of how look that balanced additional we points for same XX approach. feel would we of terms in to solve that confident

Certainly, we on e.l.f. take selective pricing

In is our additional China. have then we out of And continued almost didn't XXX% came that help of additional would fourth diversification. concessions. production addition, we in back back the XXXX, and supplier expect FX And thing XXXX in

of it's than a As lower next it'd today, little year, less By that. than XX%. even be

continued And diversification be another to of We'll be so yet to versus lever. we to level levers. decide that of take going how will much have pricing some these what able other can rely on

right continue might Again, we've an we scenario election feel happened but standpoint. from Nothing's level the through of we address approach use We are, of a face. what that planning gone don't confident balanced any to it's premature now. can tariffs that know and to tariffs number already different

Yes, beat in to partially for of from be limited just visibility Mandy mostly untouched will was point. at we've move the there most the move to they that And left don't to second you days you range. super these you consumer And the because correct and visibility. assume appreciate I because think and me is seen that's guidance have And helpful. Is how beat what just when it you before I companies guidance on the do quarter? a just the you clarify, of guidance, very that when that way, fair first it kind half

the Mexico you're any these and you're investors haven't a like new you and Germany explain lot you Is guide that to to coming your the you're cap being a But story frame of very became works? that given way of process growing. still it help kind in now and So conservatively? just if how coming the other described of places Obviously, large can the can like basically you way are countries are fall, you that seen ones new kind as all the for relatively when you guiding through. what years

Yes.

headed e.l.f. point, So we about quarter, flow year confident where a for it more QX we this feel the through But the continue we to actually is a your do beat quarter than to as at for did time, Andreas. take

increased guidance, to stay give quarter, will balanced we're more try of some help quarterly approach give and have than year. we on at again, expect. QX that as specific we seeing for do current have don't confidence actually out and what through, the least So what But quarter flowed the around very our we we in but for color this beat

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

those could was on I benefits trade can if separately, both skin the so you your you're of it's demographic your ROI increased quarter. international wondering if comment spend launches, in And marketing comment support I or exactly to you're was the where expansions, color mass on cosmetics any and whether And increase down you allocating dollars, seeing of to product far wondering new from brands? in awareness care.

Anna, this is Tarang.

trade believe In terms of don't we're if we down. we're seeing any down, consumer trade seeing

had. Great requested the be may example millions category We're seeing gives category time every drops, particular -- we expand we prestige not a Holy terms our of it still a bronzing one our I we ability the done of items the each greater strong. Grail, participating as who to it. in to have consumers most access category think in of is launch being

Our bronzing even drops or and opportunity Glam we at our Soft at of at item the more in driver at prestige main $XX really we $XX that's consumers gives versus item $X feel our to believe Satin the category, a $XX, sales. versus prestige participate Foundation the a

in in are continue and quite that picked seen to grown points up that XX are obviously in have color skin Nielsen mass also basis out cosmetics We by drive in XXX share share the bullish players. bit comes we pick a not quarters of only but We're the tracked cosmetics share are color share, that of to ability cosmetics, that XXX up certainly different color of quite of we've across consecutive care. to continuing only for our brand

of hit important been The an we at brands the only not SKIN, brand top for in have time most growing decades. for reason #X. significant a milestone why quarter, of XX coming first that there of points This XX e.l.f. is the top the basis but XX in being share,

to a gives do us SKIN and both have, with for the just momentum Natrium, years of that confidence in a e.l.f. lot us there. few we So on

in the in driving what multiples market ROIs, see momentum. many line terms we exceptional top our of a marketing, is also And What then continue we that turn, driving awareness. the industry And doing the strong is, to increase see really above on unaided our is ROIs, benchmarks. in

awareness years, leader and the been So never over the the few space XX-point awareness, unaided seen XX%. of in a has still for XX consumer if [indiscernible] I've take last we've have in grown an you look yet unaided a in XX% market increase X%. years

purpose, go to So you'll standpoint to new we've both be our fall overall test and as feel XX the users. product, to prepared build, the marketing since platforms. beginning branch We and pace a launched continue kind year, to see continue on we able as to bring about campaigns the this area in us those of continue to across remarks, in strategy that that really from unique to disrupt, continue awareness of said good new our and capabilities is campaigns, well in our

we're millennials increasingly and more well. and many the X only Gen as brand not Alpha, #X amongst Gen picking but We're Gen up Z

in what and the equity strong we to there. you'll doing see us an standpoint, be audiences quite from both marketing continue So love line is our top and awareness new

question Jefferies. with next Helgans Ashley is The from

see X go feet. Walmart -- quarter. [indiscernible] to X great XX It from was from to feet a to nice

Mandy, opportunities years, over on you like Just this clarification guidance. next brand the just kind more And shelf do see of U.S.? looking couple Ulta in for the the out then, a of

I that have not include think you announced. been don't yet lastly spoke, countries

that want are Germany and to just I the confirm guide? to So new Australia

I'll Ashley, of the So part take it. first

pleased with are got space at gains we that also the We Walmart.

it's a that fully increase space X-foot seasons U.S. continue to about usually of position You're like seeing productivity, Walmart of up. right, we It predominantly. a all we're to Paris seeing. of from a see trajectory picked passed already in And even XX% We that. within optimize opportunities a predominant us #X set we've takes the CoverGirl #X. L'Oreal at distance we the And set we're the but for to results right after couple more the for space at great striking XX-foot

We're still example. a space. Walmart dramatically great under being

legacy is the runs, have, space in not increase many XX-foot feet XX more. of if out there can XX- the While we a players to good have

we given think, even Target, space the we would #X future, only and quarters. our at now, XX% but I not foresee our rankings, in at Walmart, X that had the consecutive just share gains more productivity, we're with over So have brand Target,

there's opportunities been Target, nowhere take If Ulta, have do then Walmart. have. near drug giving it? on drug, of of Nor do But look, path a a we XX% in need at space. feel space. especially has in you And more we We we good terms

CVS, the certain our drug is quite year, Walgreens increases but at last grocery. and heard You footprint about space in small still

just we see lots And opportunity so of there.

from and out a have up data thing Squad of last the I'll driven get what space our vast of proactively growth, and the business the in our then SKUs And XX% confidence changing me ability drive on our that. been productivity the greater say space nice greatest is majority insights are, the digital the to we of we of as gains our productivity, model based has top to on kind business. That's and is the gives Beauty

And Ashley, then new Germany and the Australia, those on answer to question, yes, are to your guide.

been reflected we that [indiscernible] already just now has provided. And guidance so

is question next Oliver with Cowen. Chen from the And

Will management. the in And quarter agile mix? remain a outstanding. the the same? your nice do inventory do outpace Mandy, beat that quarter? expect really you What was terms of guidance, with drove on complexion the to job You

Just in things event have outstanding position to you an drive the trend to better. going performance? that I quarter have an beat assume did such so inventory forward, inventory And that enough how this you

strategy, thinking your been constantly care capacity. Also, innovating disruption? your mentioned you you Tarang, can it's what's risk on incrementally. does distribution of care? there compelling in I also a love ERP be Mandy, approach It's of I'm what as to sure would different that been How And in I apply you for that store. also been and assortment those products the skin know skin can and about see the And your lastly, take a hero ways in changes you're Holy Grail managing to in which have as And and placement? lot and contingencies. you've cause parts product care. happening do growing skin

question, the for Oliver. Thanks

pretty than much. quarter, we continues So what was this first better in stand really, so proposition came on the environment. in to our a out believe And thank it you mean, I XX%, quarter. do value tremendous our expectations? starts with

Grail We talked Holy drops quarter. couple that about our You bronzing innovation. with

behind oils, momentum see long lip continue we not We launched which ago. to our too

amplified results marketing to engine, really And digital just our so been walked that drive quarter. which by innovation the helped Tarang for through, and

the to thing great about The is units able were they the in this that results continue quarter. only ones led. to amongst unit X top We our grow be

to continue expect move a driver we we that to of growth as so our be key And forward.

broke much fact, portion Naturium e.l.f. mix down when mix the year. low was inclusion financials stayed driven single has in of our that In we started we've as the component, units as versus pretty by in largely digits the mix

great In inventory terms we feel inventory management, about of our position.

earlier. As up talked proactively terms we've our that take inventory demand levels several to some and seeing that added we've the quarters, and support of we're the inventory vendors for with to possession changed Naturium taken additionally our last

about we feel the So the that demand we're service on inventory to have. that great able seeing we being

question Oliver. second in -- X have the questions On there, you

Second question on ERP and distribution.

We're continuing our that. on to transition. forward to on So test we ERP, the are continuing move ERP

as We've enough looking fall. through. go testing more a out cycles lines to the We bit that shifted spring. in to just time our out we shifted originally allow have were -- We launch to the to to for spring, the

about great that. feeling we're So

the start Asia, we have so place in distribution that look U.K. to longer capacity to Also warehouse a in expand set as well distribution as in we additional in the And standpoint, out getting now from we laying continuing the groundwork are future then to up Asia looking We're term. footprint, capacity our a distribution. to service

Grail Suntouchables we're replicating our but our not Hydration, franchise but at well. I of main but SKIN, color in a drops franchises also extremely Grail cosmetics, terms the our SKIN, look e.l.f. franchises, that, or your probably terms on becomes at in And franchise we're on have latest If only prestige only of also third at in $XX e.l.f. not. Holy in continuing We'll Bronzing is Natrium. $XX. of we're absolute Holy then versus the care. on care drops Grail of not doing Holy skin not last our approach approach, inspiration product But best been see question And both current Yes. example Holy the using only that approach. approach skin if bronzing same

as us about expanding our heard body Getter wash oil well. You body Glow into the category

beams see after to continue consistent Grails X year. grow you'll so and franchises of year those And can that Holy

that? London How a should investing Okay. it the -- think One have you're big You've and a evolution? countries. about But light quick looks in in really the follow-up. partners. all approach margins. infrastructure a approaching capital investors like you International what's There's to -- nice best-of-class these in opportunity

those accretive Yes. I internationally, scale margin for say opportunity there overall. to perspective, from a be we an margins as would is

those are countries. we not about import think tariffed you we If as into

across that And out of the that's have globe. so big a to incur the as we we spread don't pie piece

international in that is something to we business continue again, to something scale. keep part as our so smaller watching and of a we're And mind,

Our UBS. with next from Grom question is Peter

to to sales back wanted XQ go just I guidance. the

the above international for to get range. what conservative? at something Are a maybe driving of all simply just big the that nontracked Or you top weaker view? still that in stores It seems really pretty just But is imply a a seeing unpack markets. a contribution Q? in growth least that You or that full step being benefit expanding down channels you're Can and really XX%, from consider really kind Naturium. when U.S. of there slightly maybe that's year channels you you So different saw because maybe from it despite bit? your you is

try Peter, we guidance the that as quarter. to but what the hard consistent XX% approach always We so come be and channels. to provide color approach. some We, balanced we're quarter. about I expect don't being We of again, say expect. take a very into guidance, we over talked would as to vast in our give Yes, we tracked range course to the in a

flows and continue feeling you about but feel as ebbs some you also contributor continue And be through, we see there that. channels. as pointed about might international and to out. good a to Natrium You untracked will go good our

for for at that QX the quarter we time. provided see today, slightly about as indicating And that like the it, And above could said, growth take it feel be we I X we'll so year. great that we've range a total sales

the then just profit on guidance. up Great. And following maybe

I flattish margin think for gross you said quarter. the second

bridge maybe you adjusted So year last just EBITDA from teens XX% the can to you low the us mentioned. margin

a of Just it seems SG&A like lot deleverage.

marketing totally X,XXX of and just piece the SG&A number. setting You Naturium. and it this basis almost get your reinvesting to at non-marketing hit of need deleverage you seems kind like But around points

helpful kind drivers any just that. on color of think would the just of So I be

Yes.

the marketing that one, EBITDA really think would be driven outlooked margins. the investment of story it's So about we first half, by when we're the you more making. lower half EBITDA second half a margin first in

up higher the XX% saw basis to So sales. in in net QX, the of closer We're targeting of end XXX year, XX% you points. that the was quarter. range, second Last that for QX, marketing

you're going continue investment to And to see there. so

continuing we that the have And as normalized and then to we we of invest walk more spend in second we and talked infrastructure. spend. to half, through, once annualizing people which about a Naturium Of will level get

So in range, base. to start you're going in the marketing already cycling XX% XX%, that

you again. have to base we And then and the start have an don't incremental Naturium in so that as

little to a you So normalized bit place. get

into half into second EBITDA of better say, EBITDA the I the get as So year, growth better get we of -- second we do growth better margin overall we EBITDA expect year. much as adjusted the would half margin expansion the -- and

a we're bit how little XX of points year to the it's spending just full of this basis that rebalancing of a get on year. expansion So to

The next Davidson. from D.A. Bolton-Weiser is with Linda question

given to a in the had guess just Maybe At thought. for I us. have two I contributed guess projection check that Naturium. revenue first I a I the is you one one for growth point, seemed it it questions. could year the the for than on quarter little Naturium. update you like a less

prior then in correct. the the year tracked for projection they're more the in to become modeling of So we've easier. channel The dig in in that even secondly, some comparisons kind prior range got XX% quarter. And just And do on second growth year. September,

it's seems it only And stack POS know So XX% a on numbers. projecting quite these I if growth, basis. crazy X-year that you're a are deceleration

to grow XX%. can XX% from that's a against even XX%, you on a So stack XXX% think X-year but deceleration

think causing investors actually POS get you is can prior to I just do want when So again, understand year growth comp a bit quite easier? that XX% what to think you kind only of like

this question. Linda, ahead take and I'll go

Naturium So to Naturium, this our quarter. the so Naturium We contributed any points percentage XX net projections not revenue for on for on had year. sales growth provided

So than to we line, better in it year. where Naturium continues maybe for slightly the even saw track right

pleased with that what see having them so And Ulta really seeing is on launched we're and track and really there. proud very to in

we're the deceleration, that the our on build I it lead shows QX, for are base On seeing a the a the on upon shows growth projections or in base. you the environment share even for the of continuing to and this brand, XX% XX% on strength, actually hear strength the market category. this we To strength but build to growth as continue upon that

overall. And we're driving how growth positioned so about we feel that we're the and great

next And with Baird. question comes Altschwager our from Mark

First, up on the contribution. follow to mix I price just wanted

lower to that points, low think some about QX half you single how said below the thinking here, up both be cycle mix right? in then in periods. we tracking price in innovations some and the you quarter seen start back believe that moving Is coming Naturium? recent as contribution I forward then I I should digits e.l.f. are we've recent at guess. first the And of what And because price

Yes.

mix has some to very market, the make down year, in staying right. well-priced was did into mix. our This on that mix we for out lower-priced price perform they're innovation. value had Again, Natrium yes, So about the introduce I that some to proposition, there the taken continuing price But our again, and price to overall. sure quarter of coming fold, true well. XX wanted points That the contribution, some percentage you're items we

want great continues that we the feeling The better road see be continue our that. for on thing demand we're is the to that's So to led And by to to the that's what volume. growth ahead, about that speaks seeing even unit brand.

are you're some seeing sluggish you you're then industry-wide, what here. obviously, front? the lot in mass growth are you of with the a cosmetics But on what And of share and seeing the taking expecting promotional

cosmetics on much is Mark, take seeing side, again of say, up so period. first higher color single-digit mass would all, I'll decline also the the that. low I that you're

So category standpoint, on side, side. on mass still promotional promotion is the the on a X-year basis, From stack not the increased up. a mass we're seeing

it overall, and of value or say on hasn't a little in proposition. much not are the because past, bothered seeing really we're really the I you think our would But channel. mainly superior specialty prestige us bit I in

single great at every value day. We're

in us. of a players more ability do terms So continue really continue been think of confident promotions trading and pick our to -- end able so. on the market the high-low themselves lot to We've pretty of to the share than I up amongst to

next Susan question Anderson And Genuity. the comes from with Canaccord

And to how Naturium in productivity compare? this have at you seeing you the customer the retailers? It just yet, that to see I do color probably maybe I'm are plans roll and Ulta. guess sounds of uptick but the guess, not on year I shelf little it's next a rollout does and like on further also, at year similar bit there Naturium pretty you the well. Target curious going a or

-- in pleased too in to and of we what Susan, our body finishing weeks couple tell skin of right the just we're we're ago. a productivity care with of really early resets. in where It's the terms set lip now body We're facial roll seeing Naturium. process

expanded and to is there's but it distribution and also a both pleased, Ulta also period Naturium and so for so had Ulta Beauty. us at against while of leaning up Beauty, excitement we And a lot in. little big a last we're Target far, year see will Target, are take But only we not for Ulta it. at And Target. where yet, At

the So expectations do. we're momentum seeing acquisition we ahead about to feel of the model. own terms of we and our great in made acquisition that Naturium with It's when our continue

So focus continue X,XXX say to excited. And it's Ulta of I I'd really in stores. then all terms right really, be further rollout, Beauty now, our mean

sure you a happy on making expand, existing have well customers [indiscernible] also We supported. and when your remain e.l.f.

Beauty. U.S. focus Amazon, team on. will go and Ulta in that's like near-term to Target, the feel execute the say I'd We continue plenty for to So be

now, opportunities in the we're internationally on are NK in There U.K. Space Right mainly Naturium.

well. little quarters, terms how So plans I into about of we in more think in subsequent hear a you'll take as other Naturium our markets bit

concludes like closing today's question-and-answer for our conference over remarks. to I session the back conference. for Amin now any turn would to This Tarang

incredible another upcoming of e.l.f. when creating discuss vision second forward different in our results. at thanks speaking quarter investor with you, and We we'll our for e.l.f. of and to Well, joining November I'm look passion Thank growth. well. team for dedication be company. to us today. quarter kind and proud a so delivering you our to of partner for your our of every of beauty industry-leading you seeing you meetings some and Thank

you for attending presentation, concluded. disconnect. now now has may conference you Thank today's The and