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25 Walmart Personal Care Products That Understood The Assignment...And Got An A+

25 Walmart Personal Care Products That Understood The Assignment...And Got An A+

Buzz Feed27-05-2025

An SPF 45 setting spray by E.l.f. so you can refresh your makeup *and* reapply sunscreen simultaneously. It'll obvi set the beat face you spent all morning on, and you can also use it as a primer!
Promising review: "I participate in an outdoor sport later in the afternoon and I was concerned that the sunscreen I'd applied in the morning wasn't providing me any protection later in the day when I needed it most. Cue the E.l.f. sunscreen spray! I just give myself a few spritzes before heading out to my sport, and my face is more protected from the late-day rays. This definitely does not take the place of cream sunscreen but it's a great option for renewed protection when you already have a full face of makeup on." —AnnePrice: $14
A Cosrx peptide boosting serum, which is basically a magic potion that'll help improve *so* many skincare probz. Pores, sebum, firmness, fine lines, texture, tone, dullness, oily skin, dehydrated skin, redness...what can't this bottled miracle improve?!
Promising review: "Makes my skin look and feel great! Will be purchasing again!" —GinaPrice: $25
A bottle of Nair body cream hair remover for anyone who'd rather ditch the blades and painful waxing or sugaring sessions. Getting rid of the hair on your legs has never been easier. Literally, all you do is apply a thick layer of Nair, wait three minutes, wipe it off, and rinse. That's it! The hair will just magically fall off. Witchcraft, I tell ya.
Do a patch test before applying this all over! If you have sensitive skin, you may wanna leave this on for less than three minutes, but you can leave it on for up to 10 minutes. Do not use this on your face!! Only on your legs, arms, underarms, and bikini area. Promising review: "I absolutely love Nair Body Cream Hair Remover! The cocoa butter and vitamin E formula not only effectively removes body hair, but also leaves my skin feeling incredibly smooth and hydrated. The scent is divine, making the hair removal process a pleasant experience. I appreciate the ease of use and quick results. I highly recommend this product to anyone looking for a reliable and effective body hair removal cream." —TiaraPrice: $5.84
A cuticle remover with aloe and chamomile to soothe, moisturize, and condition your cuticles as it quickly eliminates the excess skin.
Promising review: "I have cuticles that grow out fast and I have a hard time cutting them myself. This cream helps so much that my nails look like I went to the salon. Highly recommend." —MaureenPrice: $4.97
A passion fruit sugar scrub that'll help exfoliate dead skin, deliver deep moisture, and bring back your skin's natural ✨glow. ✨ Ya know the glowing skin you had when you were 8-years-old, before you developed the stress emotion like Riley in Inside Out? It's makin' a comeback.
Promising review: "It smells amazing and after only one use, my skin feels so smooth and baby-soft to the touch. My husband noticed immediately and loves to run his fingertips along my arm. All of my sisters are using it now!" —SophiaPrice: $8.94
A six-pack of dark spot brightening patches infused with brightening, hydrating, soothing ingredients like niacinamide and hyaluronic acid to help speed up the dark spot healing process.
Promising review: "I have super bad acne and a picking problem when I see it pop up. These patches have helped with my post-blemish marks and make me feel more confident!" —shelbyPrice: $5.32 (available in a three-pack)
An Eos body lotion that TikTok went wild for. And rightfully so — this stuff smells too good to be true. It is lightweight, will deliver a whole lotta long-lasting moisture, and will surely make its way to the top of your favorites list.
Promising review: "I'm obsessed with this lotion, from the smell to the texture. If you are a sweet vanilla type, then you will love it! The smell and hydration last all day (maybe a touch-up or two), and the scent lingers on your clothing. The texture is very smooth, it's not sticky or overly oily, it absorbs fast, and softens the skin, leaving a hydrated glow. I'm very picky with my lotions' smell and texture. I have dry skin, and I can use this with or without my after-shower body oil. It's a must-have in your lotion collection!!" —mistyPrice: $9.97 (available in a three-pack)
Plus, an Eos whipped oil butter because their body lotion has held you down for so long, you KNOW this is gonna be incredible. The thicck (two Cs because she's extra thiiiccckk), rich, buttery *but not heavy* texture will help lock in moisture, leaving your skin hydrated. Plus, it's got cocoa and argan butter in it, so it's like they just took perfection and threw it in a jar, basically.
Promising review: "AMAZING!!! Smells incredible, like warm vanilla and almost like birthday cake. It goes on smoothly, the scent lasts a long time, and it makes your skin feel great. 100/10!!" —LindseyPrice: $12.99
A Beachwaver curling iron, which will literally take all the hard work outta curling your hair (that is, the curling part). Simply press the button, and it'll curl your hair in whatever direction you want.
Promising review: "Bought as a Christmas present for my daughter, and she loves it. After I used it, I had to buy my own. It's super easy to use and quickly transforms my usually straight hair into beach waves that last into the next day." —ChristinaPrice: $99 (available in three sizes)
A self-tanner because it applies evenly and delivers you some magical results in only an hour. And best of all, no fake-tan smell!
Leave it on for 4+ hours for darker results.Promising review: "I absolutely love this self-tanner. It doesn't make you look orange, it goes on easily, and it gives you a very dark, natural-looking tan that lasts days. You don't have to use much, and it lasts at least five to six applications. It is just awesome. Best self-tanner I've ever used, and I've tried several different self-tanners from different companies, and they don't hold a candle to this tanner or company. You can't beat the price." —TeresaPrice: $9.97
A jar of The Best Damn Beard Balm made with *superior-grade ingredients* like lanolin and cocoa butter to help keep your beard and skin lookin' and feeling moisturized.
Promising reviews: "The best bread balm I've used. The scent is great, you won't be disappointed." —Lee"Great beard balm! It holds, conditions, and I get a lot of positive comments on the redwood essence from the ladies." —RussellPrice: $9.98
A 12-pack of chemical-free Honey Pot overnight herbal pads because you've got a heavy flow and a wide...oh, you know the rest. They provide a ~cooling sensation~ and mask odors while also providing maximum comfort all night long. They're super absorbent and breathable, plus they'll feel SO soothing when your period is causing you to feel like there's an Avengers fight going on in your uterus.
The Honey Pot Company was founded by a Black woman!Promising review: "I've been using Honey Pot for three years now, and I'm grateful they're carried at Walmart. They've completely changed how I view PMS time. The cooling sensation is awesome, and using cotton pads that have no chemicals has really minimized my cramps over the last couple of years. Don't put the bad stuff in you, buy Honey Pot!" —AlyssaPrice: $8.38 for a pack of 12
A cordless water flosser because constantly buying those little picks is not the move. Plus, you need several of 'em just to get every part of your mouth. With this, you'll be able to remove plaque and bacteria with just water.
Promising review: "I never thought water flossing was effective, but my dental hygienist suggested I try one, so I bought this. I couldn't believe how much better a Waterpik cleans between teeth than regular floss — and so quickly. I just had a regular checkup, and my gums didn't bleed. I am recommending this to everyone I know... I'm 73, and I can't believe I'm only now trying out a Waterpik!" —Lady73Price: $37.97 (available in a two-pack)
A tube of nipple cream for the breastfeeding mommas with sore nips. And don't worry about cleaning it off before feeding, it's 100% natural and safe for baby!
Promising reviews: "This is one thing I recommend to anyone planning on breastfeeding. I have nursed four children and have had it for each of them. (Just bought another for our new little one.) A little goes a long way. I used it for the first couple of months, and then I didn't need it anymore. I always have half of the tube left." —Erica4"Definitely a lifesaver for first-time breastfeeding mommas. Relieves pain immediately after application and is safe for baby, so you don't need to wipe it off." —AngieMPrice: $9.12
A Kitsch heatless satin curling rod for beautiful, juicy curls on those days when you don't wanna sit and bother with other tools. (So, like, every day, right?) Stunning curls with minimal effort.
This also comes with two satin scrunchies. So, I bet you're thinking, *how does this baby work?* Start with slightly damp hair. Position the curling rod to the middle of your head, then begin to wind one side around the curler. Once you get to the end of your hair, wind it with the included scrunchies and do the same on the other side. Take it out the next morning and enjoy your voluminous, gorgeous curls!Kitsch is an LA-based woman-owned small biz that specializes in hair accessories. Promising review: "Love these heatless curls, this is the only way that I can get my curls to stay, very comfortable to sleep in, and pretty curls in the morning. Highly recommend, super easy to do. Would recommend getting a claw clip or having duck bills to hold in place while putting it in." —LoraPrice: $15.98+ (available in two colors)
A set of 20 Babyliss nano titanium hot rollers — six small, six medium, and eight large, so you can always look like you *just* stepped outta the salon.
You'll also get 20 butterfly clips and 20 color-coded metal clips.Promising reviews: "I use electric curlers. Curlers keep my hair healthy instead of an iron. I have used heated curlers for many years. This product is fabulous. It is made like the curlers in the 1970s. I am glad I purchased them. I have used many brands, and this one is the best I've used in 20 years. I am glad I discovered them. The old set I had fell apart and smelled like they were on fire the last two months. I paid twice as much money for those. I hope these curlers last a long time. Very pleased!" —Elizabeth"This is a must-have if you want hot rollers. It's perfect for all hair lengths and especially good for color-treated hair!!" —osagePrice: $79.99
A Flamingo razor with two five-blade refills that'll serve you up a *reaaaally* close, comfortable shave. The blades are surrounded by water-activated aloe and shea butter strips to help it effortlessly glide across your skin and protect you from irritation. Plus, it comes with a shower holder!
Promising reviews: "I love how I don't have to use any shaving cream or soap with this razor. It easily glides and makes my legs feel so smooth! I got out of the shower, and it felt like my legs were in silk sheets! Iykyk! I also love how comfy it is to hold and that it comes with a suction cup holder! It's very cute and definitely worth the price!" —Ashlee"I was very surprised and impressed with this razor!! First time using it today and I thought it was gonna cut me just like all the other new ones did, but it didn't!! I always shave with just water, and this razor makes it slide smoothly without any problems!!!" —HeatherPrice: $9.97
And a roll-on ingrown hair treatment because shaving seems great — ya know, the super smooth legs you can't stop touching — but you also know the razor bumps are on their way. This'll help you prevent AND get rid of those pesky suckers. Plus, it'll do the same for ingrown hairs, so you won't have to skip the beach because of a super annoying pus-filled bump.
Promising review: "I am super prone to ingrown hairs and razor bumps. This stuff is seriously a miracle!! I've used countless products over the years that I found from internet searches or TikTok videos, and none really worked for me. I have always dreaded shaving my legs because it never fails, I have angry bumps by the next day, and super itchy legs. I've epilated, waxed, sugared, it seems like I tried everything. Wasted so much money on fancy razors even, and none of it ever mattered. Since incorporating this product, my legs look and feel so much better! The roll top kind of sounds like an excited raccoon while I am rolling it on my legs, but that's my only criticism. It does burn a bit when applying, but with how bad my razor burn is, it is a small price to pay. Do yourself a favor and try this product. I wish I had found it before the end of summer." —KayPrice: $13.97
A facial steamer for the full *spa* experience right at home for a fraction of the cost. This baby even doubles as a humidifier and has an extra chamber to warm towels. No more standing in front of boiling water or opening your dishwasher for a little steam. You'll get TONS of use out of this awesome little device.
You'll also get a set of five stainless steel extraction tools.Promising review: "I love my steamer. The steam gets a little too hot, but it does the job. I especially love the tools, so now I don't have to pay an aesthetician to get the junk out of my pores. And I love steaming my hair with it too. I'm very happy with my purchase." —KelliPrice: $39.95 (available in three colors)
A bottle of YSL Black Opium perfume to treat yourself to, because nothing says personal care like the sweet smell of this beloved fragrance. With hints of coffee, pink pepper, orange blossom, jasmine, vanilla, patchouli, and cedar, everyone will be dying to sniff ya.
Promising review: "I honestly did not want to buy a perfume online. I was definitely scared to, but I am so happy that I did! It is now my most favorite perfume scent ever! And I got it for so cheap compared to the other places I've seen this scent. I will 1,000% be buying this again, I am so happy to finally have found a scent that I love!" —KaitlynPrice: $39.90 (originally $155)
A Bubble Skincare tone and texture serum that'll help brighten and smooth your skin, reduce sun damage, hydrate, calm irritation, and improve your skin barrier with the help of vitamin C and niacinamide. Your skin will be glowy and radiant in no time.
Promising review: "I have combination, acne-prone, sensitive skin. Nothing has ever helped me. This, along with the acne treatment serum by Bubble, has been magical. Within two days, I saw effects. I use a gentle cleanser, then apply the serum, and top it off with CeraVe moisturizer." —PoojaPrice: $13.48
A teeth whitening kit designed with sensitive teeth in mind. Just seven minutes a day can help remove years of stains and help whiten your smile up to 12 shades.
Promising reviews: "Absolutely amazing teeth whitening kit! I am blown away at how well this worked, and FAST! I experienced zero pain or sensitivity — nothing at all. It was clean, mess-free, had no harsh taste, and it worked. I swear I saw a difference in just my first use. Popped it in and went about my day for a few quick minutes to come back to a whiter smile. WOW!" —Kimberly"I honestly couldn't be more pleased with the results. As a coffee lover (lol), I have always been self-conscious about the discoloration of my teeth, but this kit helped me regain my smile, which is way whiter. Glad I found the brand." —WillPrice: $28.99
A ceramic hot comb, but not the one like your momma used on you every Easter as a kid. You don't have to put this bad boy on the stove (thank goodness — those things got hotter than Michael B. Jordan). Simply plug it in, choose from the 10 adjustable heat settings, and perfect your style.
It also has an automatic shut-off feature so after an hour of being inactive, it'll turn off.Promising review: "Y'all, please don't walk, RUN!! It's affordable and gets the job done! It has different temperature settings, and whichever one you pick, the LED display counts up to the number, and you'll know when it's ready!! The highest is 450, and I use 450 every time. It might take like 60-65 seconds to get there, but when it gets there, it gets there! Please buy it, you won't regret it." —DaDonnPrice: $23.47
A rechargeable mini gel polish UV/LED lamp with six powerful settings to dry your at-home gel mani quickly and efficiently.
Promising review: "Works like a more expensive one. Love that you can put it away easily for storage. Love that there's a 30-second timer on the light as well. Recommend, 10/10." —candice"Bought this in a pinch, it's great! Just as good as my professional ones at home!" —lesliePrice: $9.98
An arousal gel that'll increase sensitivity, thus intensifying your experience. In just five minutes, you'll feel a gentle tingling, buzzing, warm sensation, enhanced stimulation, and increased blood flow, making it easier to climax if you have trouble. After using it, you'll feel like you've truly been missing out.
Promising review: "Very small size for how much it costs, but it really does work. I put some on my wife, and it really got her going fast. It does last a long time, my wife didn't want to stop, so it was a very long night." —jenniferPrice: $19.95 (available in two styles)
You watching your Beachwaver curl your hair:
The reviews for this post have been edited for length and clarity.
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In my previous article on e.l.f. Beauty (NYSE:ELF), the stock had plunged over 40%, yet I remained optimistic. Despite short-term headwinds, e.l.f.'s exceptional revenue growth and market share gains underscored its status as a standout performer in the beauty industry. Back then, I highlighted the risks around the reliance on TikTok marketing and an 80% China-based supply chain. Although the TikTok ban now seems to be in the rearview mirror, the heavy reliance on China continues to significantly impact e.l.f. However, management's track record suggests these challenges are navigable. Now, with fourth-quarter fiscal 2025 results in hand and a major acquisition announced, it's time to reassess. In this article, I will break down e.l.f. Beauty's latest financial performance, analyze the tariff situation impacting the outlook, examine the strategic Rhode acquisition, and update my investment thesis. E.l.f. Beauty is a cosmetics and skincare company known for delivering eyes, lips, face products that are high-quality, cruelty-free, and vegan, all at drugstore prices. Its core business spans color cosmetics and an expanding skincare line, distributed through mass retailers such as Target (NYSE:TGT), Ulta (NASDAQ:ULTA), drugstores, and direct-to-consumer (DTC) channels. The company has built a passionate customer base, especially among younger generations, by offering premium-quality products at an accessible price point and by leveraging savvy digital marketing. For instance, e.l.f.'s viral TikTok campaigns, with over 2.3 million followers, have driven brand awareness and engagement, solidifying its position as a top brand among Gen Z and Millennials. In just a few years, the e.l.f. Skin line has become a top 10 brand in U.S. skincare. This combination of value, innovation, and digital engagement has fueled e.l.f.'s growth and differentiated it in the beauty industry. The brand has built a loyal following, particularly among younger consumers, by offering prestige-quality formulas with a sharp focus on affordability and digital engagement. Its viral TikTok campaigns, with over 2.3 million followers, have driven exceptional awareness, making it a top brand among Gen Z and Millennials. These campaigns have also kept customer acquisition costs low despite rapid growth, enabling short payback periods and high marketing ROI. In just a few years, e.l.f. Skin has also become a top-10 brand in U.S. skincare, showing strong traction in a category that carries higher average selling prices and longer product cycles. Much of e.l.f.'s growth has come from consistent market share gains, a core pillar of my e.l.f. Beauty investment thesis. The fourth quarter of fiscal 2025 marked the 25th consecutive quarter of both net sales growth and market share expansion. According to Nielsen data, no other cosmetics brand (among nearly 1,000 tracked) has maintained such a streak. These gains span multiple demographics and regions. But growth isn't only coming from share gains in U.S. mass retail. The company is also broadening its geographic and category footprint. International revenue, which now accounts for 20% of sales, grew 60% in FY2025. In fiscal 2025, e.l.f. increased its U.S. market share by 190 basis points, alongside 170 basis points in Canada and 270 basis points in the UK. E.l.f.'s brand strength with young consumers continues to shine. In Piper Sandler's Spring 2025 Taking Stock With Teens survey (a key barometer of Gen Z trends), e.l.f. was ranked the #1 favorite cosmetics brand among teens for the 7th consecutive survey. E.l.f. captured a 35% mindshare among teens, which is 3.5 the next closest competitor. Beyond Gen Z, e.l.f. is also the #1 purchased brand among millennials and Gen Alpha. The company reports that in the U.S., more than one in three households now purchase e.l.f. products. Its household penetration jumped 400 basis points in the last year alone. This means there's still room to grow. While legacy brands boast over 50% household penetration, e.l.f. is steadily closing the gap. While the U.S. beauty market is highly fragmented, with no single player holding more than 15% market share, in the cosmetics category, E.l.f. is the #1 brand in the U.S. by unit share and #2 by dollar share, and it is the fastest-growing among the top 20 brands by a wide margin. The company has expanded its #1 rank in Target, holding 21% of their entire cosmetics category, and has climbed from the #4 to the #2 brand in Walmart. In skincare, E.l.f. Skin and Naturium are recognized as two of the fastest-growing mass skincare brands. Internationally, E.l.f. has successfully launched with Rossmann in Germany as well as expanded into over 1,200 Kruidvat stores in the Netherlands and Belgium, 1,000 Rossmann locations in Poland, and more recently into France and Italy. These moves signal e.l.f.'s intent to become a global player. These rankings are supported by third-party data, including Nielsen and Piper Sandler. These gains speak to e.l.f.'s strong consumer appeal and effective execution at the store level by expanding shelf space and distribution. Despite its significant growth, the gap in unaided brand awareness for e.l.f. has climbed to 33% (as of 2024) from just 13% a few years ago. The leading mass cosmetics brand has around 55% awareness, so e.l.f. still has upside as more consumers become aware, a significant runway for continued organic growth through increased marketing efforts. These share gains validate e.l.f.'s competitive moat. Its combination of on-trend products, value pricing, and marketing savvy. While many retail/consumer brands are struggling to maintain relevance, e.l.f. is consistently taking share from legacy brands like L'Oreal's (LRLCY) Maybelline or Coty's (COTY) CoverGirl. E.l.f. Beauty's fiscal 2025 (year ended March 31, 2025) capped off another strong year, albeit with some signs of growth normalization. For the fourth quarter alone, net sales came in at $332.6 million, a modest 4% increase year-over-year (YoY). This single-digit Q4 growth marks a sharp deceleration from prior quarters (which were lapping exceptionally high growth a year ago), but notably it still represents e.l.f.'s 25th consecutive quarter of positive sales. Full-year FY2025 net sales surged 28% to $1.31 billion, reflecting robust expansion across product lines and channels. Management emphasized that growth was broad-based, with strength in both domestic and international markets, retail and e-commerce. Importantly, profitability remained solid. Gross margin for Q4 expanded about 60 basis points to roughly 71.3%, showcasing pricing power and cost efficiencies despite geopolitical constraints. Adjusted EBITDA for FY2025 was $296.5 million, up 26% YoY, with a 23% EBITDA margin. At the bottom line, Q4 GAAP net income was $28.3 million, and GAAP EPS was $0.49. Management withheld issuing fiscal 2026 guidance this quarter, due to the uncertainty around tariffs. Tariffs have emerged as the biggest near-term cloud over e.l.f. Beauty's outlook. The company's supply chain has long been concentrated in China, as of mid-2025, about 75% of e.l.f.'s product volume is manufactured in China. This wasn't a major issue in recent years (in fact, e.l.f.'s China-based sourcing was perceived as a cost advantage in normal times). However, U.S. import tariffs on Chinese goods, originally imposed during the Trump administration, have come back into focus with potential increases that could materially raise e.l.f.'s costs. At the time of writing, U.S. imports of cosmetics from China face a steep 55% tariff rate. This rate is composed of the prior 25% Section 301 tariff (in place since 2019) plus an additional 30% incremental tariff that recently took effect. The 30% increment is currently set to last through mid-August 2025, pending further government review. E.l.f.'s management quantified the risk: if that extra 30% tariff remains, it would hit the company's cost of goods sold by roughly $50 million on an annualized basis. To put that in perspective, this represents nearly half of e.l.f.'s annual net income. In a worst-case scenario, the impact would scale accordingly. Facing this uncertainty, e.l.f. has paused FY2026 guidance and is focusing on mitigation. Management has a three-pronged plan to blunt the impact of tariffs: Pricing Power: E.l.f. will implement a $1 price increase across its entire product assortment globally, effective August 1. This across-the-board price hike is designed to pass through some of the tariff cost to consumers. Despite the price hike, e.l.f. Beauty proposition is still below competitors. As CEO Tarang Amin noted, The average price point for e.l.f. is about $6.50 today, as compared to nearly $9.50 for legacy mass cosmetics brands and over $20 for prestige brands. As we look ahead, we expect many brands to take pricing in response to tariffs and macro environmental pressures, further accentuating our core value proposition. Supply Chain Optimization: E.l.f. is accelerating efforts to diversify its supply chain outside China. The company actually began this process years ago. By the end of fiscal 2026, e.l.f. expects China to account for significantly less of its production, as they work with key Chinese suppliers to set up operations in other countries. Rather than abandon its China partners (which are a core strength for e.l.f. in terms of cost, quality, and speed), the company is helping them expand into places like Vietnam, Mexico, or elsewhere to mitigate geopolitical risk. Additionally, e.l.f. is pursuing cost savings and supplier concessions to offset tariffs, such as negotiating lower manufacturing costs or finding efficiencies in packaging and logistics. Business Diversification: Another vector of mitigation is to grow revenue streams that aren't subject to tariffs. International sales have become e.l.f.'s fastest-growing segment, up 60% in FY2025 and now accounting for roughly 20% of total revenue. These overseas sales (to Europe, Canada, etc.) do not incur the U.S. import tariff, so expanding abroad naturally dilutes the impact of U.S. trade policy. E.l.f. is aggressively expanding distribution in Europe. It plans, for instance, to launch in 1,200 stores with Kruidvat (a major beauty retailer in the Netherlands and Belgium) and to enter 1,000 Rossmann stores in Poland this year. Adding another layer of complexity to the tariff landscape, a U.S. federal court recently blocked President Trump's sweeping tariffs. The court ruled that the 1977 International Emergency Economic Powers Act (IEEPA), which Trump cited as his authority, does not grant the president unilateral power to impose such broad tariffs. While the White House immediately appealed this decision, and the long-term legal outcome remains uncertain, this ruling introduces a layer of legal and political unpredictability to the tariff environment. It is important to note that this ruling does not directly remove the current 55% tariffs on China, which are still in effect for the time being. Source: E.l.f. Beauty E.l.f. Beauty has announced it is acquiring Rhode, the upstart beauty brand founded by celebrity Hailey Bieber. E.l.f. is set to pay $800 million upfront ($600 million in cash and $200 million in stock), with an additional $200 million earnout contingent on Rhode's growth over the next three years. All-in, that values Rhode at up to $1.0 billion, a 4.7x price to sales (P/S) multiple. To put that in context, $1 billion is 76% of e.l.f.'s entire FY2025 revenue, a hefty investment for a three-year-old brand. So, what does e.l.f. see in Rhode? Rhode was founded by Hailey Rhode Bieber in 2022 and has quickly gained traction in the skincare market. The brand focuses on a minimalist lineup of products (such as peptide glazing fluid and barrier restore cream) with a clean aesthetic and a devout following on social media. According to e.l.f.'s CEO Tarang Amin, Rhode achieved $212 million in net sales in the last twelve months, an impressive ramp for a new beauty brand. Unfortunately, more financial details haven't been disclosed, so we can't dig into the numbers. For e.l.f., acquiring Rhode is about bolstering its skincare portfolio and expanding into a more premium, DTC arena. E.l.f. has been primarily known for color cosmetics, though it's been pushing into skincare (e.l.f. Skin and the 2023 Naturium acquisition). Rhode is purely a skincare player with a high-profile founder. This gives e.l.f. a bigger foothold in skincare, one of the fastest-growing segments of beauty, and potentially access to customers willing to spend more on prestige products. Rhode has an intensely engaged fanbase; the CEO recounted how people camped out for 14 hours at a Los Angeles pop-up just to buy Rhode products and meet the team. This kind of brand loyalty and buzz is invaluable. E.l.f., of course, has its own army of fans and a savvy social media presence. By joining forces, e.l.f. can amplify Rhode's reach (e.g. introduce Rhode to e.l.f.'s millions of customers and retail partners) while Rhode's hype and celebrity aura rub off on e.l.f. The founder, Hailey Bieber, will stay onboard. Rhode has primarily been a DTC brand with limited physical retail presence. E.l.f. can leverage its robust retail distribution network to scale Rhode beyond DTC. There's an opportunity to get Rhode products on shelves worldwide, dramatically increasing their availability. E.l.f.'s international infrastructure can accelerate Rhode's overseas growth. After the stock's rollercoaster in late 2024 and early 2025, e.l.f. shares have partly recovered but remain below their previous highs. At the time of writing, ELF trades around $112 per share. At this price, e.l.f.'s market capitalization is $6.34 billion. That puts EV/EBITDA at 22 using FY2025 adjusted EBITDA of $296.8 million, and P/S at about 5. On an earnings basis, the stock trades at around 58 price to earnings (P/E). Source: Gurufocus A closer look at these multiples reveals the current P/E ratio is 37% below its 10-year historical average of 93x. It also falls below its 5-year average of 90x and its 3-year average of 68x. The current P/S is also below its historical average. While elevated in absolute terms, the current multiples are below e.l.f.'s historical range, highlighting potential upside. Still, part of this compression likely reflects investor caution amid macro uncertainty and tariff-related risks. Source: Author When compared to select beauty industry peers, e.l.f.'s valuation looks expansive at first glance. Aside from global giant L'Oreal, most competitors trade at around 1x P/S (both trailing and forward) and similar multiples on price-to-gross-profit. However, those same peers are expected to post negative revenue growth over the next two years, while analysts project e.l.f. to grow revenue by around 18% annually. While I take these projections with a grain of salt given the macro uncertainty, e.l.f. warrants a premium. The company has disrupted the market by offering high-quality products at low prices, while sustaining gross and EBITDA margins above industry averages. e.l.f. is also better positioned to raise prices if the tariff war intensifies, given its value positioning and built-in pricing elasticity. That combination is precisely why the stock deserves to trade at a higher multiple than slower-growing peers. Finally, it's also worth noting that, despite the heightened uncertainty, Baillie Gifford (Trades, Portfolio) has maintained 14% of e.l.f. Beauty shares outstanding, reflecting institutional confidence in its position. As I've discussed throughout the article, there are several risks to consider. The tariff overhang is the most immediate risk. If the 55% import tariff on China-made goods remains in place or worsens, e.l.f.'s costs will rise significantly, squeezing margins or forcing further price hikes. E.l.f. has been outperforming rivals, but competition in beauty is fierce and relentless. Giants like L'Oreal, Estee Lauder, and Coty won't cede market share without a fight. Additionally, the rise of new celebrity brands (every influencer and celebrity seems to launch a beauty line nowadays) means e.l.f. must keep its edge. E.l.f.'s products are affordable, but they are still discretionary purchases. A downturn in consumer spending, whether due to recession, inflation reducing disposable income, or shifts in preference, could impact sales. E.l.f. now has the task of integrating Rhode and realizing the growth that justifies the hefty price tag. We don't know its full financials, and Rhode could become a drag on e.l.f.'s earnings. Also, mergers can be distracting and sometimes fall short of expectations. There's a risk that management bandwidth is stretched, or that Rhode's growth slows under a new corporate structure. Additionally, the deal's financing involves $200 million in new stock issuance (diluting existing shareholders) and a large cash outlay that will increase debt. E.l.f. Beauty results demonstrate strong momentum and gaining share globally. It has been gaining shelf space and remains the #1 brand across Gen Z, millennials and Gen Alpha. E.l.f. continues to disrupt the sector, but now its supply chain has also been disrupted by external forces. The tariffs from China are a real headwind, and they warrant caution in the short term. The stock has surged over 25% post-earnings, driven by strong results and the news that a U.S. court blocked Trump's tariffs. However, there are tools at the Trump administration's disposal to reinstate back tariffs. With that in mind, the 25% jump might have been overexcited. The ride in the short term will be wild. For long-term investors, the company is executing well on the matters that are under management control, with expanding market reach and a clear strategic vision. Given the strong fundamentals and long-term upside, I will continue to hold. This article first appeared on GuruFocus.

Scavenging sharks' peaceful response to rivals surprises observers
Scavenging sharks' peaceful response to rivals surprises observers

CNN

time4 days ago

  • CNN

Scavenging sharks' peaceful response to rivals surprises observers

Scavenging sharks' peaceful response to rivals surprises observers Observers captured video of tiger sharks and oceanic whitetip sharks peacefully feeding together on a carcass despite conditions that posed the potential for aggression. 01:31 - Source: CNN Elephant seal in Cape Town wanders into suburbia, stops traffic and wins the hearts of locals A Southern elephant seal makes a surprise visit to the residential neighborhood of Gordon's Bay in Cape Town, South Africa, and triggers an almost nine-hour rescue effort to return him to the coast. 00:57 - Source: CNN Why e.l.f. just bought Hailey Bieber's beauty brand for $1 billion e.l.f. Beauty is buying Hailey Bieber's makeup brand, Rhode, for $1 billion. Founded in 2022, Bieber's brand racked up $212 million in net sales in its last fiscal year. 01:11 - Source: CNN Contestants risk injury in cheese wheel competition An annual race held in England has attracted thousands around the world. It's been described as the world's most dangerous race: a 200-yard dash after a wheel of Gloucester cheese. 01:15 - Source: CNN Should Sean 'Diddy' Combs testify? CNN's Laura Coates speaks with Benjamin Chew, co-lead counsel for Johnny Depp in his defamation trial, about whether Sean "Diddy" Combs should testify in his high stakes criminal trial. 01:55 - Source: CNN SpaceX Starship outperforms previous missions this year Regrouping after two consecutive explosions, SpaceX launched the 9th test flight of Starship, the most powerful rocket ever built. The mission marks the first time the company reused a Super Heavy booster from a previous flight. 01:55 - Source: CNN Two birds found onboard Delta flight A flight from Minneapolis to Madison, Wisconsin, was delayed for about an hour after two birds tried to stow away on a Delta Air Lines flight. 00:44 - Source: CNN Trump pardons reality TV couple Todd and Julie Chrisley President Donald Trump has signed full pardons for imprisoned reality show couple Todd and Julie Chrisley, who were sentenced to lengthy prison terms in 2022 for a conspiracy to defraud banks out of more than $30 million, according to a White House official. CNN's Kaitlan Collins reports. 01:07 - Source: CNN Former 'Diddy' employee describes alleged abuse Former employee for Sean 'Diddy' Combs, Capricorn Clark, took the stand to testify in the federal trial against her long-time boss, seemingly corroborating accounts from witnesses Cassie Ventura and rapper Kid Cudi. Capricorn alleges Combs made threats and carried out acts of violence against her, including forced lie-detector tests Capricorn claims to have been administered by Combs' security guard while she was held. 02:37 - Source: CNN All-American Rejects singer talks house party tour The All-American Rejects lead singer Tyson Ritter joined CNN News Central to talk about his band's house party tour that started as a protest against pricey arena shows. 01:34 - Source: CNN 'Duck Dynasty' star dies at 79 Phil Robertson, patriarch of the reality show 'Duck Dynasty,' has died at 79, according to a family statement. Robertson founded Duck Commander, a business making duck hunting supplies, which later became the center of A&E's hit show. 01:06 - Source: CNN Truck explodes after possible propane leak A home security camera caught the moment when a box truck driving through a residential neighborhood exploded in Addison, Illinois. The driver walked away with only minor injuries, CNN affiliate WLS reports. 00:36 - Source: CNN Teens help rescue family from garage fire CNN's Fredricka Whitfield speaks with Aiden Kane and Tyler Sojda, who helped rescue a family in Marcy, New York from a garage fire after spotting the flames while driving home from junior prom. 01:16 - Source: CNN Where Kermit the Frog's tea meme came from Kermit the Frog tells CNN's Sara Sidner his thoughts on being an infamous part of meme culture. 00:41 - Source: CNN Verdict reached in Paris robbery of Kim Kardashian After a weekslong trial, eight people behind the multimillion-dollar armed robbery of Kim Kardashian in Paris were found guilty. Most of them received prison sentences, portions of which were suspended, but all will walk free due to time already served. 00:43 - Source: CNN Anderson catches up with man sailing around the world Anderson Cooper speaks with Oliver Widger for an update on his viral adventures sailing across the world. Widger quit his job, liquidated his 401(k) and bought a sailboat to see the world with his rescue cat, Phoenix. 01:55 - Source: CNN See moment OceanGate team noticed something wrong Newly released video shows OceanGate founder and CEO Stockton Rush's wife, Wendy Rush, who was working on the communications and tracking team, notice the sound of a 'bang' while monitoring the submersible. The Titan submersible imploded on June 18, 2023, killing all five passengers on board. 00:49 - Source: CNN 'The Points Guy' on the best deals for summer travel Brian Kelly, founder of breaks down the best deals for summer travel and how to make the most of your frequent flyer miles. 01:00 - Source: CNN

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