e.l.f. Beauty (ELF) Morgan Stanley Global Consumer & Retail Conference 2025 summary

Fiscal outlook and growth drivers

• Organic growth for the second half is projected at 2%-5%, with strong U.S. consumption at 12% and global consumption at 8%.

• Q3 is expected to be at or above the 2%-5% range, while Q4 may dip negative due to a significant pipeline impact.

• International consumption is down mid-single digits, mainly due to U.K. promotional activity and lapping the ROSSMANN Germany launch.

• Long-term, there is confidence in continued strong consumption and market share gains, especially in color cosmetics and skincare.

• Shelf space expansion remains a key growth driver, with consistent gains across major retailers and high productivity per linear foot.

International strategy and market dynamics

• U.K. softness is attributed to heightened promotions, while other markets like Germany are stabilizing post-launch.

• Expansion continues with new launches in Germany (dm), Poland (ROSSMANN), and the GCC (Sephora).

• The strategy focuses on building presence with leading retailers before broader expansion.

• International CAGR over the last five years is 55%, with most growth from Canada and the U.K.

• There is significant untapped opportunity internationally, with disciplined sequencing of market entries.

Innovation and brand portfolio

• Innovation is a core strength, with a focus on launching 'holy grail' products inspired by community insights and prestige trends.

• Spring and fall innovation pipelines are robust, with high consumer demand and value positioning.

• The innovation process is community-driven, agile, and consistently delivers high-quality, value products.

• The brand holds top positions in multiple color cosmetics segments and is expanding in skincare.

• Acquisition strategy prioritizes growth potential and founder vision, as seen with Naturium and rhode.