"Last year was a roller coaster ride for e.l.f. Beauty , but also a transformational one. The company continued to take market share, but it did see its swift revenue growth stall after running into some industry headwinds and tariff pressures. E.l.f. also acquired the prestige skincare brand Rhode, which helps set it up for its next leg of growth."
"Taking a page out of the fashion industry, and popularized by clothing brands like Zara, e.l.f. would make copies of hot-selling prestige brands and sell them at a fraction of the price. Its product quality is generally considered good, although not to the same level as the originals. At the same time, management targeted a younger demographic and pushed hard to attract Hispanic consumers. It leaned heavily into influencer marketing and has been one of the top companies to find success with social media campaigns."
E.l.f. Beauty sustained significant market-share gains in mass cosmetics by using a fast-follower product strategy and heavy influencer marketing. The brand targeted younger and Hispanic consumers and expanded distribution in retailers including Target, Ulta Beauty, and Dollar General, with further shelf-space opportunity at Walmart. The company acquired prestige skincare brand Rhode to broaden its portfolio and support future growth. Revenue growth slowed amid industry headwinds and tariff pressures, contributing to a roughly 40% decline from stock highs. Management set a 2% to 5% organic growth outlook for the second half of the fiscal year. International expansion has shown progress but remains in early stages.
Read at The Motley Fool
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