e.l.f. Beauty (ELF) 6 Nov 242025 Q2 Earnings call transcript

Thank you for joining us today to discuss e.l.f. Beauty's Second 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. Since many of our remarks today contain forward-looking statements, please refer to our earnings release and reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements.

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

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

e.l.f. good 'XX. KC, Today, everyone. delivered sales of XX% start e.l.f. recognizing I XXX of of group want and the our million net raised our Beauty we and results the share both marked grew quarter Beauty EBITDA second companies. QX growth to high-growth putting increased points. consistent quarter Thank U.S. and XXrd In in and discuss yet by team. outlook drivers QX, $XX share a afternoon, you, sales will in of our quarter market growth. net for market rarified another QX fiscal adjusted consecutive marked category-leading our and basis by we gains

of X XX% We has for sales are least X,XXX share the only quarter. XX of growth at quarters. by grown consecutive only X companies per public tracked the to E.l.f. Nielsen XXX quarters average cosmetics nearly of for XX gain is that straight and brand out brands consumer

were above that growth slightly in sales track helping below commerce, of international expectations. Our net retailers digital trends with QX our our came XX% stronger-than-expected in outlook, and across U.S. growth to channel offset

growth markets. markets from in up net Our international International year in our existing net of into XX% a ago. sales XX% sales our grew XX% by well fueled drove as QX, as in expansion new QX,

XXx Canada in growth largest significant in and by more see fueling growth more gains the to each. share U.K., our continue Xx in existing markets. e.l.f. We for than outpaced category in than runway

We in Rossman to model As social in date. country. Germany, driving Rosman's #X we stores of we e.l.f. our in brand biggest the platforms, demand across quickly engagement entered. success we to markets, our X,XXX international stores enter to cosmetics well a ascended this QX seen with saw play launch launch before look consumer we've the with out international new in e.l.f.

also Etos in Rossman Our brand both Netherlands into expansion to and in in rankings November. maintain #X the the since pleased launch Douglas in our Italy. continues We're

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

XX% X.X Beauty enrollment loyalty Our consistently with has growing Squad program about year-over-year. members, now million

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Turning to the U.S.

XX% at trends than which versus coming in this to our our QX X in Nielsen channel represent half plus track XX% were about attribute softer consumption at business, Looking We expected, plus expectation. trends, factors. our

those of choosing points more we basis e.l.f. In believe significant choiceful It's seen gained last points year. in our as choiceful basis we've QX X% market consumers of compared market category in to QX, XXX are overall minus share to outperformance more First, XXX X% QX. share in in QX their spending. cosmetics top larger-than-expected with the a trends color on We minus in evident and are moderation that consumers gains being

mass top share #X brand and in the the and in units the dollars cosmetics in dollar brand prestige. is brand brands share, context, fastest-growing and the both both across category among e.l.f. color For driving #X is U.S. unit as XX

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a me to each. you take Let moment walk through

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our area value of advantage second Our is proposition.

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are beauty consumers. In productivity, growth industry global our at to partners and stronger strong by among traffic, we driving large retail younger benefiting category driving more and penetration addition the greater

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QX, up international executed earlier, in we Germany are our Rossman X,XXX consumer As in we're discussed by biggest stores exceptional date, to to the I pleased bringing launch demand seeing. and

e.l.f. Sephora, we first marking As with the in launched in partnership previously e.l.f. brands Sephora. October, Mexico announced,

that summary, share While and us days, we're of consistent already Sephora, deliver growth to market cosmetics that advantage areas Mexico. In enabled we're have gains. still we're brand X we the early in the pleased category-leading in #X have

gains ability in share to the As term. I'll and care, color we internationally and Mandy. continue to cosmetics in the driving long and near we look our in call market ahead, turn now domestically over skin confident both remain

our our the retailers. that as growth retailers, Tarang. raised growth of highlights outlook category of growth by U.S. been last underpinned fiscal well QX sales continued now by the has quarter our grew as you, 'XX. commerce gains the outperformance I'll on our diversification second and across as in Thank outside year as national XX% of digital international and XX% results share year-over-year QX fueled well net for I'm top sales of in U.S. market cover planned pleased

remaining the last team business marketing points our higher in in million, driven favorable continues in mix as approximately with year. our and channel year last prior growth ongoing net we half and This EBITDA in better QX from by increase wholesale sales Adjusted as as to the the contributed for more QX. was to exchange partially was compared SG&A to adjusted related investment with impacts in costs. On in cost margin margin unit timing part in EBITDA increase due second was driven given step-up penetrating mix adjusted percentage net points normalized We by XX% transportation of year-over-year. QX investments to led as consolidated and digital partially growth out quarter, increases cycle by was and adjusted shift, fiscal to financials, adjusted in versus inclusion Naturium offset margin sales price and of Naturium was to shift our $XX continue of the a Naturium of up an expect rates XX% acquired adjusted XX% of digital primarily approximately we of and net expected quarter further and financials growth XX approximately a came was well last of be planned last our we into markets. year, of compared year. was The the inclusion compared XX% for year. be 'XX and up investment a as sales. than points. of QX sales Our volume, October foreign infrastructure. QX XX% higher was EBITDA investment. to basis in by which saw international year-over-year marketing the EBITDA The expenses benefits SG&A the XX stronger in of gross XX% to basis, savings of to XX% in Even XX that gross adding we Marketing see

Moving and flow. to cash the balance sheet

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

inventory was inventory ago. $XXX by balance when the quarters, supporting of our year and demand ending of line take of from we and Consistent seeing. the last Our addition the million, increase with a up China, was in few ownership $XXX expectations with timing we're the million from Naturium driven

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

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

which to provides of for to drive our repurchase recently another we new authorization the long-term Additionally, announced avenue a for us $XXX creation share million continue program, value shareholders.

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

position We raise to outlook top to our are line. both pleased in the a bottom across be and

growth full to XX% For up XX% the year, we now expect approximately sales of previously. net to XX% from XX%,

in Our the as and talked as raised ongoing to relative we with the about momentum. space to Dollar our reflects gains well related Walgreens General outlook outperformance QX expectations, Target, pipeline international

on growth implies we organic top an approach our line sales starting Moving raises, second quarter consistency net delivery top will with guidance the the of the and forward, to with beats outlook, versus magnitude of which our where half exited consistent to prioritize end XX% XX% basis.

contribution versus contribution start the net in half. more first of cycle becomes points the in Natrium reminder, its sales we modest QX As top growth and the to acquisition line a XX to

channel Additionally, deliver to for definition an share diversifying increasingly Sircana. on given we diversified business thoughtfully different do our the several and and our and track expanded penetration across portfolio brands addition sources not give outlook of channels, U.S. continuing of while trends category-leading internationally. remain focused We the brands in Nuturium, changing the the gaining and expanding Nielsen with data growth in plan international our our with of to track U.S.

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

terms expect transportation price In costs. key takes, the offset savings, be international in puts the of from second implemented we benefits 'XX year favorable of half and higher cost and FX mix full fiscal partially gross and margin to by increases rates

EBITDA. adjusted to Turning now

For EBITDA million million previously. the million, from up $XXX million $XXX full to between year, expect we adjusted $XXX $XXX to now

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

basis, our EBITDA We compared XX at year-over-year. basis 'XX to in adjusted continue approximately points and XX% still sales last are We leverage 'XX. From XX% was category-leading a balanced We a to second margin in XX% continue and our the to digital of you as underscore expect the quarter QX cadence expect drive year. as our strategy year-over-year throughout to full market to net and the raised in summary, on and our sales of year of have investment early approximately a fiscal innings more sales questions. believe marketing consistent pace QX, may particularly in spend fiscal leverage believe 'XX. in digital open growth. outlook we In XX% standpoint, in we to implies of for approximately operator, reflected marketing net for plan the full share continue winning some of and to a for That as marketing results unlocking in marketing spend ability call that, we potential fiscal our brands. With

Helgans first from [Operator Jefferies. question Today's Ashley Instructions] comes with

challenges cosmetics has And sales? makeup your of as then percentage As channel. a load, called mass spend a few you reconsidered in have competitors of the marketing out have some drug guys or

just drug So the would can you about be anything tell helpful. us

Tarang. is this Ashley,

bullish we of it category, comes little QX take in look when to down the with find more as a we overall category. overall the the the bit at on category category pullback saw, We're we saw a often As a different cycles X%. we

working. is insistent is Our strategy remain marketing our to and

pace marketing, to the really XX% throughout year. normalizing about feel that of that the XX% kind range good we So of

seeing see in certainly, above growth the to industry top benchmarks. you're ROIs well continue line. And the We

our great of then in the mass our spend. And outlook about probably channel, legacy of cosmetics little the different business expanding some bit than terms the and drug. highly are raised distributed in feel we still drug, our of cadence we're is drug in who So marketing a brands

NCAP to this the space. as XX in of also we've they're Just spring. of this to from X- expand and about last expanding, we're in X-foot presentation Walgreens years, mentioned, were And expanding feet to couple further a in-line X in in even now we gone CVS to

So I'd offset the channel say drug. that within has than of more any dynamics

in the other see in to share we We continue up pick of channels. to -- ability all our just our have drug as

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

Tarang, growth categories, I Beauty to have love signing a your benefit category. your competitive, you stay and view on your ability slowing Mass can the the key as of offset. whether you're retailers gets about how you adjust to trade market the more and strategy drivers gains, market share of from materially and key Maybe to of ahead more talk down

exceptional so to we've our growth. growth are consistent to about we stay great consecutive XX say [indiscernible] but Olivia, feel the driven of ahead the category. quarters And net I highly what's seen, deliver of ability would drivers sales also with that

foremost best the of of every eye, making lip be accessible to First is and value proposition our face. and

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us rewarding As you heard, space. not with targets more standing still

all customers. have our opportunity retail We of major across

We markets. have exciting in international fastest-growing X and out different been as care brands of to particularly roll the skin brand then we the has start

continue continuing continue to So I about the great playbook our to disrupt of terms in build this ability to and to feel market share. follow core

follow Are All they replacing General. or And on is go Dollar you CoverGirl? do the up space expansion right. Maybelline That's beauty? your helpful. General Dollar decision into just General? that Dollar view to I existing want you your Or expanding the think to to how retailers to get

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And from our Truist Securities. with next question Chappel today Bill comes

tariffs. the would Just the Tarang, obviously, of day, question be

thinking So for if and move it Mandy, starting if we there's you're round tariffs or into could you you think it it of dealt just even or kind remind if as us about with kind and administration how 'XX. past how you're of maybe about prepare the another to in

Mandy Bill, here.

tariffs. So

So to tariffs. previously we've address what done with

at XX% And order disposal. those tariffs you So -- had a did number to in levers if the our tariffs, we level. of offset I we at XXXX, take we were experience to back

our our portfolio suppliers, also savings cost that favor, we exchange and our X/X with of into foreign moved our time. cost We at suppliers, with concessions took pricing have about on

of days, today, we out in Today, that's products -- coming about coming pocket of we those out we international I to will lever was were we business that our I our of we and think China. addition grow and tariffs also, about you where XX% international our about about are that XX% But import as have would not to in tariffs. have say say additional we China. And back would back are the we As an XX% and quarter. countries if this to just penetration, talked represent also help offset subject the our of are That think impact into growth continue diversify. about seeing XX% of to we

And think potential so number scenarios disposal. a but we those early in, number a we certainly level I a have have still too it's run tell of may levers for playbook of to at we tariffs. our what And have and come

just concessions that, enact new the I'll power, tariffs when have of into well-balanced in that and the given something a our And further is administration XXXX. to a select FY plan of length plan, see And FX, combination we'll with comes and 'XX. we no Mandy's This impact to diversification. will they later add what pricing have Bill, that in It's cost us supplier chain. would hit potentially supply savings,

of tariffs ability team's navigate no to So highly confident tariffs. our or

next from our comes today Grom And UBS. Peter at question

something approach. guidance So think Mandy, around in a shift you the I mentioned

specifically in magnitude X versus top of delivery [indiscernible]. of consistency think line I prioritizing the beat

terms in that in a shift bit thinking be just how So about should unpack more that maybe we can approach? just you of

Absolutely, Peter.

well. guidance. anchoring for it and annual has as So our served I strategy that us has on last consistent the quarters would remains we're XX say largely, guidance

a that's quarter a I taking mean and that it what We And time, at is consistency. by so are consistent.

law grow As we a smaller. will of into it's be just numbers, of big beats company, a larger and magnitude raises

I little in really a that's that for we done so believe us. do XX of continue to last and recipe we've shift But to consistent the terms delivery, right for a that the so. of quarters And bit think have

comes Andrea Looks our today with her lost connection. we like from Teixeira JPMorgan. next And question

Dara Mohsenian with Morgan comes Our Stanley. next question from

So X me. things for

a you Tarang, lower-priced bit guidance? Just expect makes what do aggressively about as I'm General. on to fiscal And that a follow-up, manage move just revenue front? risk perspective, guidance, the why your talk today timing channels. And things back back, to Dollar change it's brand just comparisons potential you just reasons right go a for and Tarang take little assuming Can have gave as how get that just you more why category the the you to sense growth is as into obviously the over equity can into category you any you will better a what any embedded it you And you but detail then time. pretty get step half perhaps in been easier, consistent on

some about category weakness perspective and more So that maybe the what driving just in on seen you forward. we've performance how the think category is think and recently you going the

terms distribution in of So Dara, do advance. dollar, our on our we a lot of distribution plans in

on they see a particularly brands. than strategy. in And it a again, to make bigger in They beauty presentation you at it, more e.l.f. other from as much And advance. we a these better want look want started in a conversations was resulted alignment it So year take presence than

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that to important that brand particularly will elasticity. The of for that our is areas most underserved, us in make sure set thing whole been now to have that those e.l.f.. is though e.l.f. that we're So community. serving has a And rural smaller consumers a have there's access

in and then retail I'm show also take remain really customers excited of of arc. gear and across categories. So through. And a up we growth. of I as on about go in all I terms terms personally category how we cosmetics longer-term the dollar excited our skin color bullish the

seen where We it slowed. cycles different have

pullback to [ been XXXX, really pretty couple this roller overall the on that been we a exactly a for company fall consumer those And categories, haven't category the pandemic, dip only saw of every the strongly, bounce quite experienced certainly what's We of last saw across ] instances, back category of little certainly back the hit. we've of to when terms XXXX for the it a find able has in We saw that going years, we bought strong. X the We of an we summer, even seen of in in year, in bit next before. saw In sometimes number of we've couple last pandemic after year. years.

build I overall. remain the as the about build overall on the category that the the way is of the can space and we guidance the talked anchored we as overall expansion. that on we to much expansions we continued bullish pipeline is not know share, our market category And continue international So it

regardless feel in of highly around. we drive the where confident our to ability terms growth continue of So bounces outsized to category

And TD our next from Cowen. question Chen Oliver today comes at

have we and with investors good an as seen building do as accounts about your the minimize TAM international, a be than expect, well. what's lot easy be channels does would unfortunately, about the you bear in place that in I worse ERP side, think to processes as to case that softer as Also, terms finally, of not we've awareness model and well thing track just what And countries continue there. as do, to there. infrastructure in toolbox for companies to look can you have on issues If execution ERP. And or what timing great and blocks It's on to of you scenario? in think progress of you of that are should focus risk the lots

thanks the for much Oliver, questions. so

said we So channel not the a perspective, I from the I on any track for mean, on implies on channels. a basis. saw XX% that an And the I we -- as second QX really really call, organic we that's said as really is color really out what incur growth. the to call, XX% of of continuation and half of year, to track would giving around love guidance to you our the What XX% what

we and outlook market pipeline we with our with space talked And U.S. Target, we again, feel in also expansions and associated share second great just into that momentum. Walgreens Dollar continued drivers, so look building the about then as those half. And the about international the

blocks of really we so year. half are those the second in that building the And see the

switch are On here the we're But to go also you flip an just we do the we that we a prepared, of on ERP. team on not that, ERP to spring give like if on aligned to as XXXX. say the feel live update we're all side, SAP later the going expecting in not have to

go we testing, and here through So before Oliver, of risk we of a a to lot want way, doing we're lot training that team live. the minimize lot of a of preparation

of of transitions trying to make right put to from have others types mistakes we before so want and there. have learn sure these we through And that the gone XXX% switch it

demand question supply that to fuel I the And great making the continue seeing. on we're to global investments ability feel your and then our about on international, we're to

good well And ago, distribution we months And last different team the and have London. world. growth As a to international the other continue know ability that of we XX strategy. within in over our for I going that the calls support we think feel We're the to it's by aided planned. to can the markets it. And also the the We're been to international about not it's be team, I just to but growth also continual that in we infrastructure. getting so also We've we're our few and map in U.K. members to at people that's from once. them, in team it's built and in investment. to capacity mentioned it's find all We're leading then establish also retailer a a ourselves market a not XX beauty this make look to sequential around adding approach like a putting disciplined sure countries expand there. into with We the a get hurry added

we that well it's of pacing make the and So that. in how follow within our terms sure control we

today [ Our next Savanna comes JPMorgan. from ] question with Chaudhary

-- I sell-in sell-out question on a don't a can okay. you question I hear have on know have me. if sell-in a and clarification. I and

the Or exited you volatility all there's clarification some channels across brands seems all retailer, the there as the caused again, be it is of sell-in was mid-single U.S. said. With can a you a congrats around it any of the General, Thank digits. comment back not, like we cadence? in Tarang, 'XX. that like complementary obviously end And planning? impact if you bounce destocking on quarter. fiscal If back, we have inventory both. pace? lot on Dollar ex-Natrium of consumption that similar faster, is see mentioned included for very should this for are even the more ex-Naturium, saw then How there of And mean, a entering, How a I into COVID have the in at that, and the into it's situations, the the growth the grow to headwind? how a volatility on you you you or things may that fiscal numbers there. And was And if seems that obviously, but many doors and when on elections perhaps

Andrea and Savanna.

sell-in a from seeing the Again, dynamic, end. a by So as sell-out anything is productive brand are reminder, retailers. really our our on not most we carried

volatility, so very so going pipeline kind would that's momentum continuing share be from tracked XX% kind of international we're seeing with talked of year, that is the there. to market build just the to our they that and I reorder say XX% kind continue annual And about, those in that focusing out. for place to back why up look category need that we're really our of as category keep channels more bounce I do and strong a the guidance, to volatile blocks the the demand and piece And the the to we we're and guidance we the then building focused of seeing. overall on have on to

on is subset see to November. in on that but we it Andrea, nature with will disclosed the it to General, channels. very the setting be That will haven't going before see feel tell complementary and follow-up how further chain deciding we'll can Dollar many be feel of get experience what highly question, it's channel, the to about some excited other ability how a it's But And of consumers doors, you your I then give us the expansion. accessing we do and customer goes how incremental on well, new relative again, the

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

I wondering bit front. guess maybe little a the more was on I innovation

having like incubation from [indiscernible] then out to the there's innovation? do roll maybe should long when I guess, to then out? And down it out about to It does looks come categories bit I inventory. get shelf guess, or this less a talked did think come product I quarter. franchises this And opportunity to guess, it You you expect take, quick there? how we on still really new quarter. what little just

you're needed that So as inventory that should curious I'm excess about if you of the forward. done kind and inventory that, go think how growth we up building we

Susan.

in in our really were growth channel on is XX% the below at It So about in what commenting came XX%. remarks, we out at tracked we're slightly our came looking.

a the share. We X%. in was We growth, still little a XX% in consumer ton we it strong. down bit still pullback terms was cited picked of of category see a So being still did factors. up One X of

Super storm had back terms our we coming Filter, of our run Glow On continuing which franchises, is basically The Filter. Power core stock Halo other a perfect Glow Glow support. year Halo in those off we We're Grip to Halo support of on Liquid last on Power level going have whole viral and Primer. Liquid a franchise Primer the basically we went of in Advance, had got launched a and that We thing Grip couple the had Bowl and it. ton of spots. getting

franchises of between core new mix the about products. talking really some our those and we're So

actually of the stronger expecting this of Color were XX all having top products were than Cosmetics newness. terms in in year X new items we Our of

we great. So feel

So better making franchises we the new balance the these us indicated is support for have just items. our action and sure we behind

core news, the Now Grip, SKUs X the Power in cosmetics even top the we our on entire good franchises category. have X of on

also go forward. have Grip Halo in So talked our and core that strength one Power we about franchises as the we is of Glow

spring further bring core year. those innovation significant we on as of particularly our going of And see is you other franchises. to reanimations be encouraged the of we by continue seen franchise. And about the that number our as going every franchise, to thing time news to accelerates we've are it innovation, a You're the particular some our can focused think spring I a

the core come got even full that business our continue ability I and be overall, and So spring, them with feel, about out strength great to slate franchises, will the that news have there the new very we on. innovation then a coming to and them, in again, of we've reanimate on

we And to about feel have position our support seeing. on then, feel Susan, we we're continue we on question your demand inventory, inventory that the need the that the great inventory that and to

And more this and into QX it go quarter, you things an looking of come need I that this as out. do up, we to like exit terms down innovation and get and as saying typically, into year. comfortable kind outlook, we feel there's build haven't kind of spring see I but our can't. pipeline then a bit that at we're third In of go that, given there's as a should we buildup

today question from with Anna next comes of Lizzul Bank Our America.

more was themselves here the expansion, product there. of planning wondering if the assortment seeing any I that channels and shift wondering And is between what the about you're in that between sales could habits also retailers you versus you're purchasing bit you're and to that talk in General was then retailers a feature and online? Dollar I different seeing terms

last around on as based what our channels I we're seeing of year. across Nielsen customers data take on say bounce or each on So strength think sometimes the Circana broad-based will and Anna, going it we also I'd a look data, was core the

last distribution comping those to for Beauty Ulta example, the go time lip out oils and through. Around of a between that year, tend had we our be at we'll But as our things this we that you So different particularly even over time, have. retailers launch breadth massive of

and also at but national the consumption XX% international. the last to retailers, only strength not our on strong kind certainly So XX% of overall good with continues digital over top be then in year of I feel about quarter

we have of -- between there. we our feel retailers, really So of digital kind prospects good our and the we diversity that about business because national have international, levers growth

And bringing -- of are said, the beauty then as best making on Dollar we we General, accessible.

best General have the presentation, we We're as the we And dollar so feel our And Dollar to Grails that merchandising stores. about modified the we'll products, great we assortment. bringing channel. assortment, the our not enter our the Holy have

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

do My mix. with first to had question

You or the I of into wholesale exclude you mix was gross or Naturium positive was minds because is decelerating positive was then growth, the the moving mix if term and question effect and long curious then be and effect, rates second negative to gross a growth on said was effect of negative seems margin. a the effect channels. on for quarter Naturium mix international negative around my investors. growth, growth the margin in the on And related margin. And that accelerating on slowing to and gross

how one So algorithm expand did these expanding cetera. you're might rapidly when I'm long have a about internationally, growth defining helps you can you into growth a areas that help, algorithm a you've et if you And that brands, various lower company. long-term growth it investors were new wondering think you if would thought understand term if

you're why good to So that you hesitant have growth. such now state curious I'm one

question I'll gross take the margin. on Linda,

I'm very So one, with would say, pleased I progression. margin gross our

margin quarter. gross the previously points XX on raised Our our gross points XX basis on basis points was basis this to up XX from year. We outlook up margin

expected. gross the So to that planned out did feel start piece called we reason our go and wholesale we because is was about into Naturium The margin. great mix

think gross not that diversification international we is as I so to we margins, a is kind International that great are you of they in talked as to margins feel overall. can really -- tariffs. And as about gross have because subject help may our the way about earlier,

about And of as you better would margin that gross that. so a to think naturally, bit little lead

"Hey, investors growth the And in time heard things we've it have algorithm, said, on you was then from long-term algorithm, last some long-term inadequate. of mixed Linda, growth [indiscernible] out terms -- put

single mid- and years. to you've delivered I think growth we to the we're high the had over X last said grow going seen we've digits

does part there's box in. some of us So it it

having data, pay said pool think to been also bit attention and some have with. Now to go Nielsen which little there preoccupied think weekly that, we a too it's I investors

market correlates I growth, us, share. on. with go sales refresh adjusted think they're missing the closely entire things point. net the and long-term EBITDA our and measures, most focused share absolutely And growth will X what Periodically, X we performance. And those for there's we're are

terms the is can leading outsized first that, And You continuing raised feel to of guidance. to growth. to industry. in about be able X our within drive see We really growth our very market turn, in good strong share

color market international. But what industry-leading and a great if continue to I long-range continue staying number. sense to have continue really I plans, to makes We including the out those X business, to on. and We'll can to white are right expect space certainly you our focused now, the care skin discuss growth visibility things think, So put and think share we're it that. debate our longer-term we'll, cosmetics, is But areas gains. of

next from comes And Korinne with Piper Sander. our question Wolfmeyer

you teens. does touch a bit on little like you're And of of last put It down kind a low there to QX. was came the up. you like that. seem well were I'd that talking into in believe little mean, spend of kind the I bit EBITDA of quarter, EBITDA was you pushed ahead number target margin. I obviously,

quantify should how QX of half? cadence to much And could into the and we how back help and the QX? the QX about thinking maybe between was be pushed us you So margin

was a QX. QX. shift prepared saw bit expense our to expenses we EBITDA I to so our really non-marketing talked in than shifts down as for And the in out timing quarter. in to both did marketing comes SG&A Korinne, come that and in We little better expected remarks, out --

we QX, that second EBITDA half, little And little that higher roughly QX at And second the so XX-ish envision for we're can our that of then those that bit be just bit shifting. a you the because margin. when expenses guidance the half. you a outlooking percent XX% about a look implies lower margin talked than would

next question with our Altschwager And comes from Mark Baird.

distribution to the guide, you've on international on year. this this there. And considerations growth the versus how XX% continued we from the channel in Just XX% model QX then just half fill more different what the versus help quarters? new the the see quarter there then cadence broadly materially recent to other half. for to just great contemplate back in momentum on just was And QX. any seen back international, as tailwind the any of revenue

is Tarang. this Mark,

consistent. So I'd say international is largely

able be above pleased when we in Etos, as overall you Mexico, well. I Germany, Douglas, Italy most markets. that we're our If goes really what by in go a a think out terms in was the with particular strength existing Sephora, good consumption into about. Rossman, customer. I is launch the seeing as in we're the will growth overall, at #X timing look XX% gate of to well launch for feel that of particular we're different There as seeing terms with think being QX, the at XX%. but We pipeline And had --

solid. it's pretty feel So we

to an strong. have be growth continue expect We we the it back to what half outlook international the would in than be other

have half, XX% building to to the we other outlooked for for half, achieve say we've blocks that providing second and color to feel about second in XX% really not quarterly then And Right. place any that. the than great we the

our And Astrachan Stifel. from comes question today Mark with next

I then, it's basis, it to XQ And 'XX expected like to much higher year-on-year have about was still I and it I also bit but a than 'XX again. given growth greater. look expectations your a growth. was on seems year-on-year guess, would sequentially XQ Wanted inventories it decelerating ask more the maybe for up at

related trying -- that terms Like of much and of just from in I bit what inventory? And on for? China. when there's guess about the obsolescence on? of what would maybe going hold to it's talked what to you something this good not I part sort of inventory? maybe potentially is want is, explain long timing too So around other is you're taking be timing concerns to of Is any you more figure that? And it and the just going more guess, out why Are a ownership how of any terms in little question of there specifically

let so a take yes, Mark, me quarters on back just inventory. our you of couple maybe

this product change time when last taking that is we're ownership leaves China when we So arrives year talking of started earlier ownership taking about when around with here. instead it

we've that talking been So on couple quarters about last impact had for an that of been the inventory, has that. that

So seeing our want And I inventory color overall new global we've no your building as footprint. that's to here. And for build new is to anything obsolescence as not in for like address is portfolio, of well. on risk talked There you're our narrative cosmetics, addition question being a inventory, that. obsolescence really what the on our that about,

here Germany, e-commerce. in the U.K., in in DC about second talked U.S. the with centers Asia, we've distribution So setting the up additional here the nodes world our across on in

levels So that us to that to the overall, inventory demand higher but allows seeing. also leads service we're

that feel demand that inventory we service that and it we will to seeing. be enough the hand with quite have that comfortable help we're believe on So

Parikh And comes our with next Rupesh question from Oppenheimer.

distribution just So at further thinking was about curious here. from opportunities performing how to back then you going Ulta it's Nutorium. how I guys and are

We this Tarang. Rupesh, great Natrium. feel about is

We're a growth. with a the strong year to ago reminder, Ulta very Beauty. acquired As very see launch about and brands continue we pleased at it the

in really there and I as presentation care, but think, not We have only a assortment, skin facial full also good in body well.

Boots internationally. will the opportunities the U.K. Natrium just doors at -- set big a we'll addition where expansion innovation. in of to opportunity, other we only Space as Natorium but expansion in distributed look continue And So first in got distribution were into of also Nutorium our there. in U.S. in not NK We particularly as well think at we has

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

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

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

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