Can Hailey Bieber revitalize the elves?

Elf Beauty (elf 0.79%)) Over the past few years, stocks have passed Wringer and have fallen 40%last year. It is a brand that continues to increase its market share despite its strong growth at that time.

The market was worried about price rising and slowing growth, but smart investors can see that elves have a long and strong future. By adjusting this, the company acquired the cosmetics line inlod developed by the model and social media star Hailey Bieber. The announcement overcame the analyst’s expectations with Elf’s 4Q import report, and the market gave the company a passionate thumb. Let’s see why Yi’s acquisition is doing for the ELF.

Hailey Bieber, Elf Savior?

Elves accounting for several highlights in the fourth quarter of 2025 (end of March 31): Revenue increased 4% year -on -year to $ 322.6 million, up to $ 326.7 million, and EPS reached $ 0.78. Imported bites are large, but 4%of the growth of ELF has long since its long -term growth. It is reasonable that the price has fallen with performance because the company that has seen this kind of growth cannot be highly regarded.

By developing the market uncertainty of ELF, management refused to provide guidelines. The tariff situation is too unclear, and the elves are exposed to the impact because 75%of the production comes from China. Tarang Amin said the company is fighting in three ways with potential tariffs. First, the product price is increasing $ 1. He is only the third price hike in 21 years of history, and in the past, customers have been able to absorb an increase.

Image Source: Getty Image.

Next, we are diversifying the supply chain. AMIN pointed out that a few years ago, 100%of production was supplied in China. We continue to build a variety of supply chains.

Finally, it is also diversifying its business. It has a greater propulsion internationally, which is still a small part of the whole, but it is growing faster with an increase of 60% in the 2025 fiscal year. Six years ago, the International accounted for 10%of the business and reached 20%today.

Another way to expand your business is to expand your brand portfolio. And that is where bieber and rhodes come in.

How to help the elves

I will admit that I didn’t know too much about the erod before I heard about this deal. However, according to a quick explanation of the product line and review, the brand is a lot more helpful to the elves’ market of younger and more sensitive to social media, and the approach to product development is synchronized with the ELF. For example, we sell a popular patented silicone phone case designed to keep the company’s lip gloss. This matches the product line of the ELF that meets the needs of a particular shoppingist in an innovative way. In a press release, Amin said, “Elf Beauty has found a confusion with the same idea on the road.”

The difference from the load is the price. The big part of the elves and popularity is low price. We are proud to provide products that compete with luxury brands with the lowest price in the market. Rod is a luxury brand.

First of all, the elves do some things. It helps the gun margin. Luxury brands with premium prices tend to have a higher total margin. Next, the elves enter the exclusive Sephora store owned by high -end large corporations. LvmhIt is exposed to Sephora’s global customers.

Finally, this can be the beginning of a huge cosmetic company that can compete with a larger competitor. Estee Lauder and L’OrealBoth own several brands. This strategy applies to mature companies that bring new brands to increase profits and relevance. They have too big and well -established distribution systems, so you can add new brands with simplified systems and wider margins. The elves have acquired the skin care company Naturium in 2023, so it is clearly moving in this direction.

Is this the beginning of an elf rebound?

The elves are the most popular cosmetics brands for teenagers, and the industry has reduced its market share in the past few years.

The acquisition strategy is an attempt to create the growth of a slowing company, and especially this product has a clear benefit to Elphrods, which doubled its consumer base last year and generated $ 222 million in sales. The ELF pays $ 800 million to the company, and another $ 200 million pays potential $ 200 million as it grows. The powerful distribution system of the ELF can speed up to create value to ELF and shareholders.

ELFs have a lot to increase growth from new brands to international sales and innovation of product lines. I don’t think I need a Hailey Bieber to save it, but this acquisition seems to be another reason for the positive stage of travel and the long -term potential.