E.l.f. Beauty CEO rejects growth fears, points to 'great momentum' following Hailey Bieber deal

Hailey Bieber is presently the million-dollar tailwind successful e.l.f. Beauty's (ELF) sails — and CEO Tarang Amin is betting that's beardown capable to stroke distant Wall Street's skepticism.

"I've ne'er seen a marque that's gone from 0 to 212 cardinal successful nett income successful little than 3 years," Amin told Yahoo Finance's Opening Bid, referring to the company's caller acquisition of Bieber's tegument attraction line, Rhode.

Consumers are "willing to hold for 1 of their [Rhode's] popular events 14 hours overnight," Amin said, noting that shoppers were fundamentally "buying into the full lifestyle."

Wall Street, however, isn't convinced. Despite a important bushed successful its astir caller quarter, e.l.f. Beauty is facing a shifting communicative from the Street. Over the past year, shares of e.l.f. person slipped astir 8%.

A caller study from JPMorgan expert Andrea Teixeira highlighted a "concerning" deceleration successful halfway concern growth, noting that portion the top-line numbers are surging, they are heavy propped up by the Rhode acquisition. Organic maturation successful the basal concern is expected to dilatory to conscionable 2% successful the backmost fractional of this year.

Amin isn't buying the carnivore case. Speaking connected the disparity betwixt shipment numbers and existent user demand, helium dismissed the thought of a slowdown arsenic a "pipeline" accounting quirk alternatively than a driblet successful popularity.

The bull lawsuit rests connected 2 pillars: a celebrity-fueled precocious extremity and the inflation-weary debased end. On the precocious end, Rhode gives e.l.f. a foothold successful the prestige "lifestyle" category. With millions of followers connected Instagram and TikTok, Bieber's marque has achieved monolithic standard done a choky lineup of conscionable 10 products.

On the different extremity of the spectrum, e.l.f. is leaning into its footprint successful 11,000 Dollar General (DG) stores. While different user staple giants similar PepsiCo (PEP) are sounding alarms astir the "under pressure" low-income shopper, Amin claims e.l.f. is thriving successful the worth aisle. He noted that 60% of radical who bargain e.l.f. products astatine Dollar General are wholly caller to buying cosmetics astatine the discount retailer.

"We proceed to spot large momentum," helium said. "So I deliberation this quality for america to bring the champion of quality with our unthinkable values truly resonates crossed truly each income groups."

The skepticism from analysts whitethorn stem from 1 lingering question: Can e.l.f. support its 28-quarter maturation streak erstwhile the integrated motor is cooling?

Amin remains confident, acknowledgment successful portion to a loyal roster of Gen Z and millennial consumers. "I don't spot thing that would alteration that," helium said.