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

Key drivers of growth and market share

• Achieved 23 consecutive quarters of net sales and market share gains, driven by a high-performance team, value proposition, innovation, disruptive marketing, and a strong productivity model.

• Maintains leading positions: #1 unit share and #2 dollar share nationally, with over 20% share at Target and strong momentum at Walmart.

• Expanding shelf space at major retailers like Target, Walmart, and Walgreens, and entering new channels such as Dollar General to reach underserved consumers.

• Focused on both color cosmetics and skincare, with e.l.f. SKIN and Naturium among the fastest-growing skincare brands.

Innovation and competitive advantage

• Robust innovation pipeline inspired by community feedback and prestige products, offering high-quality items at accessible prices.

• Early adoption and leadership in digital marketing platforms like TikTok, Twitch, and Roblox to engage younger consumers.

• Franchise-building strategy with products like Power Grip and Halo Glow, driving growth across multiple segments.

Market environment and category trends

• Recent deceleration in share gains attributed to tough comps and temporary category dips, but recovery is underway.

• U.S. mass color cosmetics category expected to rebound, with innovation and new product launches fueling optimism.

• Promotional activity at competitors has limited impact due to strong everyday value proposition.