Conference Transcript - ELF 2026-06-04

Tarang Amin, Chairman

Right.

Operator

Thank you, everybody. For our next session, I'm very happy to welcome back Elf Beauty to the conference. And with us, our chairman and chief executive officer, Tarang Amin. Thank you, Tarang, for being back. Well, thank you for having us. We have limited time, so let's just dive in. And I guess we'll start broad and maybe update everybody just on how you're feeling about the business and the category amidst what we've all been talking about this week as a relatively challenged consumer. Sure.

Tarang Amin, Chairman

So I'd say a little bit of background on Elf Beauty. We've existed for 22 years. We were founded almost 22 years ago with this radical idea of selling cosmetics over the internet for $1. Everyone thought the founders were crazy. This is pre-iPhone. You couldn't sell cosmetics over the internet. It certainly couldn't make money at a dollar doing it, but they figured it out. While we've migrated since then to different channels, different price points, the core fundamentals of the business have remained intact for over 20 years, which is making the best of beauty accessible for every eye, lip, and face. And we've seen tremendous success because of that. I think we most recently reported our 29th consecutive quarter of net sales growth. For those keeping track, that's seven years of continuous growth, averaging at least 20% growth per quarter from a net sales standpoint. Our namesake, Elf Cosmetics brand, has built over 900 basis points of market share over those last seven years. We have an incredible portfolio. Elf Skin is now a top 11 skincare brand in the U.S. In addition, we've had two major acquisitions. Notorium, the clinically effective biocompatible skincare brand we acquired about three years ago, is currently the fastest growing skincare brand in the U.S. amongst the top 50. We've more than doubled its sales to over $250 million of global retail sales. And then Rode, which is a brand that we acquired in August, Haley Bieber's brand, is probably one of the most phenomenal brands I've ever seen. It is in our last fiscal year, which we just finished, did about $390 million of net sales annualized. And that's in less than 20% of Sephora doors. And as far as Sephora is concerned, Rode had the most successful launch as Sephora has ever seen in its history in Sephora North America, Sephora in the UK, and Mecca in Australia and New Zealand. And we're very excited to be launching Rode all throughout Europe this fall. So I would say in the backdrop of a challenging consumer segment, one of the reasons why we've continued to be successful is because we offer extraordinary value to the consumer. Prestige quality at a fraction of the price. Every single one of our brands is accessible, even though we cover different price tiers. So Elf Beauty has this incredible value proposition. Average unit retail is around $7. uh notorium is in the mastiche price range closer to 18 and um road is entry-level prestige but each of them are accessible relative to if you look at the quality of the products and what they offer and so i think that's helped us you know really over a pretty long period of volatility from a consumer standpoint going all the way back to kind of even the pandemic post-pandemic inflationary pressures, you name it, we've been able to navigate that with consistency. And as great as all of that is, what I'm most excited about is the tremendous white space we have across our portfolio.

Operator

Yeah. So let's talk about that. As you say, the last seven years during not a simple environment to navigate. As you think about the building blocks of historical growth, and then you look forward to the next seven years, how many of them remain sort of intact and it's more building on that momentum? And how are things maybe changing and different elements of the portfolio requiring different efforts to drive future growth?

Tarang Amin, Chairman

Sure. So if you think of health beauty, we have four durable competitive areas of advantage. And we believe all four of them are equally relevant for the next seven years as have been for the last seven years. The first is our passionate team of owners and high-performance team culture. We're unique in our space in that we grant equity to every single employee every year. So every employee at Elf is a meaningful shareholder in the company, and we train in high-performance teamwork. And the reason why that's important to you as investors is the level of engagement we have from an employee base is off the charts. 97% recommend Elf as a place to work, over 94% extremely strong engagement. And you also see it in the level of productivity of our workforce, where the net sales and adjusted EBITDA per employee is miles apart from any of our competitors. And it really talks, I think, our most important durable advantage is the passionate team that we have and high-performance team culture. The second big advantage we have is that value proposition. So as I mentioned, on Elf Cosmetics, our average unit retail is about $7. uh most legacy most of our legacy mass peers are about 11 so a pretty sizable difference and prestige over 20 and the reason why that's important is sometimes people pay attention to the price point uh the key for us is we've been able to engineer in better quality every single year for the last 10 years so with elf you really have no compromise you get prestige level quality at a fraction of the price and that value that i talked about not i own elf elf skin but across our portfolio is a second core advantage and we believe value i mean it's always involved regardless of where the economy is the third advantage we have is our powerhouse innovation we have a unique ability of taking inspiration from the best products in prestige as well as what our community is looking for putting our elf twist on and bringing it in an extraordinary value And that has been pretty consistent over time. And it's one of the reasons why, if you look in the cosmetics category, we have 22 segments where we have the number one or two position in color cosmetics. And the way we've built that market leadership in the 22 segments is through innovation. A consistent track record of innovation year after year and a volume that really responds to what our community is looking for. And then the last advantage is our disruptive marketing engine. We are by far the number one brand amongst Gen Alpha, Gen Z, and millennials. And that strength is really built on our ability of living with where our community lives, being pioneers on different platforms, and the level of kind of engagement that we do. We sometimes say we're an entertainment company that happens to sell beauty products, but the level of kind of disruption that we have in marketing and that engagement model. So I'd say those are our four advantages that have really propelled our business over actually the last at least seven years, maybe even longer. And we believe are just as relevant for the next chapter over the next seven years.

Operator

One thing that it feels to me, at least, maybe different as you move forward is the fact that the portfolio itself has evolved. So this the growth going forward is going to be more reliant on multiple levers of growth across multiple brands and really across multiple geographies, which we'll talk about. I guess that portfolio management capability, how does that, you know, how I guess how well developed you feel that muscle is? And how does that maybe change the outlook going forward as you have to balance, you know, investments across multiple brands?

Tarang Amin, Chairman

So I think one of the strengths of this business today, those who follow the company for a long time, is the strength of the portfolio and how we're managing that portfolio. If you look at me, look at Elf Beauty over our 22-year history, I think we've shown growth in all but maybe two quarters. There were two quarters in 2018 where we didn't grow, where we, like any business, you hit a soft spot. And in 2018, when we hit a soft spot, the only business we had was Elf Cosmetics. So if you hit a soft spot, you're really dependent on that. We have a much richer portfolio. I talked about the growth rates as well as the prospects of our entire brand. And then our approach is different. Every brand in our portfolio is important. When we look at acquisitions, we have an exceptionally high bar. It has to meet our vision first and foremost of building a different kind of beauty company, one that disrupts norms, shapes culture, and connects communities. Most brands drop off right there. The level of white space that we see, obviously, the financial profile, those things are table stakes, but the team is actually really important too. So we're different than other companies is when we do acquisitions, part of our underwriting case, is we don't assume any synergies. We actually want the entire team that's been doing an exceptional job building that business, and we bring them all over. I'll give an example of Road. Nick Flahos is the CEO of Road. Nick and I worked together all the way back in Clorox days. I've known him for 20 years. Incredibly strong consumer background. That entire team, all the founders came on board, the entire team came on board, and our approach is how do we enhance the team? what capabilities you need. In Rhodes' case, they're about to enter Sephora. We helped build out their field sales team before we even closed the transaction. We talked about investing more in the brand. It's accretive to the overall company, so we can make those investments and still have it be accretive, shoring up kind of that innovation capability, particularly from an R&D scientific standpoint. And so that's allowed us to manage this portfolio really well where the people focused on Elf are highly focused on Elf and continue to be. We have a dedicated team on Notorium, a dedicated team on Rode, even a dedicated team on Elf Skin as we take a look. And that really has allowed us to be able to pursue the white space across the brand portfolio. And then our role, like I said, we're different than other companies. Our role is how do we help support a founder's vision and enhance it?

Operator

And so that goes really early on in the diligence process of what are we trying to accomplish and where can we add value so it's more of a pull model which really allows us to manage that portfolio and be able to pursue multiple vectors of growth at the same time yes um on road again the momentum i mean has been exceptional um your outlook uh for for 27 um embed you know implies strong momentum certainly into the first half of the year and beyond um i guess one of the the questions from investors is just you know on the plus side can it be better right on the on on the other side of the coin is um not so much you know

Tarang Amin, Chairman

will fall short in the near term but just how long it lasts um so how do you think about um you know both those aspects you know what are the potential levers of upside but also how are you uh where's your confidence come from in terms of duration of growth yeah so I've been in the consumer space 35 years uh Rhodes probably one of the brands that have been most confident in terms of the long-term trajectory and that went all the way back to diligence I think we sometimes get this question which is a little perplexing to us of Hayes wrote a celebrity brand and a lot of celebrity brands have gone up and they've kind of come back down and we kind of scratch our heads to that because I got to tell you, I see a ton of founders. Hayley Bieber is not just a celebrity, but she's one of the most thoughtful founders I've ever met. Her level, her instincts, how beautiful her aesthetic is, how involved she is on every aspect of that brand. I don't know how many rounds of submission we get into. And then her vision, one of everything really good. So the foundation of Rode is really built on the strength of a product portfolio that's highly curated, that has numbers no one has ever seen in terms of individual product level. If you look at Rode, one of the things that attracted us to Rode was they were doing $212 million of net sales, DTC only, with just 10 products in less than three years. We'd never seen that before in our space in terms of that type of trajectory. as we've taken it into sephora the launches in sephora north america sephora uk and mecca and australia new zealand are multiples higher than anything else those retails are ever seen i'm talking about any brand those retails has ever carried so it's in a level and a category that is unlike anything else that goes beyond that and then the sustainability really comes from a couple of things number one is the strength of the fundamental products as we take a look at the repeat rates of those products, how the brand continues to build month after month. So not only do we have the most successful launch in Sephora, but you take a look at the momentum that we see in Sephora as we continue, particularly under this curated product line. The other great signal for me is every subsequent launch we do on road is bigger than the prior launch. So you see this momentum continue to build. And yet for all the success that we've had on road, it still has a tremendous opportunity in terms of brand awareness. The unaided awareness on road is probably in the single digits. And we've proven on Elf Cosmetics and Elf Skincare our ability of building awareness. On Elf Cosmetics, we've taken unaided awareness up from 13% to 45% in just a few years. So we know how to drive awareness and bring more consumers into a franchise. So this is a brand we definitely are building for the long term. and then the most exciting part of it is we in our fiscal 26 we did 390 million dollars of net sales in less than 20 percent of sephora's doors we're going to 19 european countries this summer over time if sephora could have it they would love the brand in every single sephora around the world we're very big on disciplined rollout strategy making sure you're building the brand making sure you're building the community as we go through. So, yeah, I do get a chuckle when people worry a little bit about Rode. I'm like, you've got a lot more to worry about than Rode. Rode is a pretty phenomenal brand. Just like I'm sure there's a lot of pull for more distribution on Rode, I would assume that there's lots of, on paper, lots of opportunities for that brand to go in lots of different directions into new subcategories and white space. at the same time that that heavy curation is key to the brand how are you managing that that tension yeah you know so i give um hayley bieber a lot of credit on that she set out to create this brand on something that was one of everything really good uh the only thing that we will introduce on road is something that she personally uses is a big believer in and like i said we go through dozens of submissions on each product so i'm not we have a robust product pipeline on road but it follows that same philosophy you're never going to see some of the brands that we sometimes get compared to you know they had 100 skus 150 skus um we don't see road going there we continue to see it to be um something that is continues to be highly curated even at the same time you know just i think this last week we introduced our next slate of innovation online you're going to start seeing that in sephora soon um the response to that innovation has been incredible so everything that we're doing just given the thoughtfulness in terms of it's a very different strategy it's not about proliferation it's about meaning for the consumer and the quality of those

Operator

products gives me a lot of confidence in terms of how we continue to drive innovation but do in a way that's consistent with the brand ethos great um turn to the core elf brand you mentioned that softer patch in 2018 the good news is i mean we're in a little softer patch now the good news is we've got um the broader portfolio as you mentioned but as you as you look at what has been softer consumption on elf of late you know flattish low single digits um by by our observation on consumption data. I guess, what is your diagnosis of that slowdown? I think there are probably multiple facets to it. And then what are you doing about it to reignite growth as we move into 27? Sure.

Tarang Amin, Chairman

So as I mentioned before, our business is driven on four core fundamentals, team, value, innovation, and marketing. And so let's go through that. Maybe I won't go in the same order, but Let's start with value. Last year, because of tariffs, at one point last year, we're facing as much as 170% tariffs. We took a dollar price increase across our entire portfolio, which was a 15% price increase. Now, on the surface, that was a successful pricing action. We took 15% higher pricing. We only saw mid-single digits unit decline. In the last few months, we've seen a bit higher unit decline, I think, based on the consumer sentiment that's out there that a number of companies have talked about. And so we take a look at it and say, hey, look, we feel that pricing overall was the right move relative to the costs, both tariffs as well as inflation that we're facing. Having said that, we also take quite seriously our responsibility of delivering superior consumer value. So we've been doing some price discovery. We had a skin tint, a new item, that came out last year, that was priced at $18, that we just tested at $14. We saw more than a 40% lift once we did that test. In the last few weeks, we've seen as high as a 60% lift. So that really got us interested in saying, hey, are there some selective other products that we want to test and do some discovery to say, if we took the price down a dollar on those items, what type of elasticity do we see in this consumer macro? And I think two important notes there. This is not a wholesale rollback across the entire price increase we took last August. It's really discovering which items, which prices do we feel has some resonance that we can potentially take some selective pricing action because value has been the big driver of our business just to see in this macro, are there places that we can offer better value to the consumer? The second thing from an innovation standpoint, as I mentioned, we have had a consistent, strong track record of innovation, our innovation in the spring cycle that we just launched was below our expectation. Let's say it's the first time in eight years that we've had innovation that was below our own internal expectations. And while it was below our expectations, it's still some of the strongest innovation in the category. We already have two of the top 10 launches of the entire category. If you take a look at what's the difference there, we tend to do best when there's a very clear frame of reference to prestige, the prestige inspiration. And if you look at the two of the top 10 launches we have so far this spring, one is our lip oil stick. It's priced at $10. The only other thing like it is a prestige item at $48 in the marketplace. Consumers got it right away and we've seen really great results. The second is our melting lip balms. It was an item we launched last year that we've continued to extend on again at $9 versus prestige at $24. an incredible, incredible value. There are a couple other items that we thought would do better than they have. Like, so we had a part of our Soft Glam franchise. We did a Soft Glam concealer at $5. We thought that would have incredible virality at a $5 price point. There's not another $5 concealer in the marketplace. It's had good offtake, but not nearly the level of virality we had. And so what we're doing from an innovation standpoint is reinforcing where do we have clear frames of reference now the good news is in another month we start setting our fall innovation we've already seeded online four items that have very clear frames of reference to prestige we have a makeup brush that is the only other thing like is a prestige item that's selling extremely well same with these blush and bronzer sticks again very clear reference from a prestige standpoint we take a look at our lip stains as well as our quads early results and all you have to do is go on online and take a look at Michaela one of the big influencers in our space in the last two weeks just look at the reviews she's left on that product as well as a number of the other ones that are quite encouraging the other thing that we're doing is we're leaning on our one of our superpowers is our speed to market and so we're known for listening to our community and delivering what they want to market so we've actually brought incremental innovation into this fiscal year based on the volume of what we're hearing the community wanting and based on what our community wants we can go from an initial idea to actually having them in market within six months and so really leveraging that strength we have an innovation to to be able to do that as we go through third from a marketing standpoint Our marketing works best when you start seeing that virality on innovation, our ability to feed that and be able to sustain that demand and build growing franchises. And then last, in terms of team, we made some important team moves. One was recognize the contribution of Cori Marchesota, our CMO, over the last number of years. She has a particular passion for the Elf brand. So making her president Elf Brands, where she has a passion, particularly not only on the Elf brands, but also the expansion in other categories of the Elf brands, as well as our international growth aspirations there, I think plays well. And there's a great analogy there. When I look at Nick Vlahos, CEO of Road, I look at Suzanne Pingeli, the president of Notorium, really bringing that focus on Elf, bringing Oshia Savor as CMO on Elf brands. She is somebody we've had our eyes on for a number of years, tremendous talent from a marketing standpoint, bringing those fresh eyes into e.l.f. And then last but not least, appointing Ekta Chopra, the chief technology and AI officer. Ekta has been with us a decade, led our technology initiatives, including probably one of the most successful conversions to SAP anyone's ever seen. Last year, she has a real passion for AI and how we embed that across every workflow within the company. And so those are the core actions that I feel confident in terms of, because they go back to the fundamentals that have grown in the business over a long period.

Operator

We didn't hear much about that SAP implementation, which is a good thing. Yeah, which is always a great thing. When you talk about the frame of reference criteria for innovation relative to sort of crowdsourcing from your community, is there a good overlap there? And if there was not, what would you prioritize, if that makes sense?

Tarang Amin, Chairman

Yeah, no, there's always overlap. I think part of what we do is when we study, we've got such a great innovation capability that our teams are always sensing what's in the market. And the great thing for us is we're not dependent on any season of prestige innovation. If you look at some of our biggest innovations, there are prestige items that existed for a decade, 15 years, that became viral over the last couple of years. One of the biggest launches we ever had were our lip oils. The inspiration of that had been in market for more than a decade and really took off after the pandemic as people wanted bolder looks from a lip standpoint. If I look at our camo concealers, that was a prestige item that had been highly successful for 15 years. Our ability, and I think the real secret for us is putting our e.l.f. twist on it and bringing in a much better value as we go through. So those things have both where you can actually see the size of the prize based on what's actually sold for a very long period of time in prestige that we can bring greater accessibility to that our consumers are already responding to. and then those moments that you hit particular virality one of the great things about being in beauty and particularly in color cosmetics and skincare is the level of consumer engagement in these categories is off the charts relative to any other consumer category so this is one i mean i was in i've worked almost every consumer sector over the years and you know relative to food to pet to home care laundry and paper i mean a number of the other categories this is a space where consumers are not shy of letting you know what they're most excited about and our ability to be able to respond to that so there is often a convergence between the two uh as we take a look and and the way we navigate that is our innovation pipelines go out at least three years uh where we are and i would say that is the the science aspect of mapping which are the biggest items in beauty or biggest sources of innovation how are we engineering our quality and our our value into those as we go through and then giving yourself we have another lane where we give ourselves the ability to pivot when people i mean we did this just even um last year where we had on our pipeline uh bronzing drops uh our community came to us and said no no we want them now and we were able to launched them six months later so we pulled them up a full at least a year from where our original slated launch was based on the level of volume we heard from a consumer standpoint so we'll continue to see us follow that approach of if if we see our community particularly spike in a particular area our ability to move around the innovation timeline to be able to take advantage of of the um the interest in that in that item which is exactly what we're doing right now in FY27, where we're bringing additional innovation.

Operator

I'll put some of this in the context of your 27 outlook, because the pricing machinations that we're talking through, that you're working through, some of the incremental innovation, as well as what's going on in the commodity cost market, inflationary pressures, those are not explicitly embedded in the 27 outlook. So I guess two questions. How are you managing through that uncertainty? And then I guess, how would you like investors to be thinking through those same variables?

Tarang Amin, Chairman

Yeah, so I'll start with the second one first. If you look at our overall philosophy on guidance, our initial guidance has always been the floor. So if you look over the last seven years i think we've out delivered the net sales guidance by something like 1500 basis points uh just a bit of guidance probably about the same amount so when we put our guidance our initial guidance it's something that we're incredibly confident of regardless of what we've said has been embedded in or not like we it's just our approach and you can look over 29 quarters our overall approach of pretty conservative how we take it one quarter of the time. And we're focused on the long term. So the other thing I would tell, because I always get a little perplexed when I hear people like, hey, what's the gross margin impact of price discovery you're doing? And, you know, at first I started answering the question by saying like, well, it's not across the entire line. It's certain items. And the elasticity is a key part of what we're looking for. But the bigger thing, which I think everyone seems to forget is we're set to receive 58.5 million dollars of tariffs that we paid last year um and uh and we've already started receiving some of the tariffs so we're going to get 58.5 million dollars that is also not in our guidance which will more than pay for or will certainly pay for any of the activities we're doing to drive stronger unit growth so if i think of the price discovery we have if i think of inflationary prices. And we're not as exposed as some other companies are to oil prices. But the inflation that we may see there, if I think of the innovation and any incremental support we put behind innovation, we anticipate to use the 58.5 million. It's really a one-time thing. We had a one-time tariff piece that we paid that shouldn't have been paid in prior years. We're going to refund this year, it gives the ability to really drive stronger unit growth. And so the way to look at that for investors is our ability to take that tariff refund and invest in our community and our consumer to drive even stronger unit growth, we feel will set us up even better for the longer term. And so any of the noise on what price discovery during what level inflation, anything else there is pales in comparison to those tariffs and gives us a great deal of optionality as we navigate this year in terms of really being able to have that dry powder to be able to.

Operator

Yeah, it's an important point because there has been uncertainty questions as to the likelihood of receiving that. So you are receiving some and you have high confidence.

Tarang Amin, Chairman

We've already received some and we do have high confidence. I mean, it was very clear uh we were early in line uh in terms of kind of seeking it um and so now like many companies we have no schedule we have no certainty of kind of what what cadence will come in because i know i'll get 100 questions afterwards so okay well now that you've got it when are you getting your next payments and we don't know that we just know that we are not only in queue but we've actually already started it yeah very good receive so very good um one you know one key aspect of the growth story we we alluded to earlier but we really haven't talked about is um international um and it's international across now multiple brands um i guess maybe there are a couple of markets that

Operator

have been topical the uk and germany because there's been some volatility there may be an update on where we are in those particular markets and then just more broadly how you're thinking about and prioritizing the international opportunity, not only in 27, but over the next several years?

Tarang Amin, Chairman

So stepping back, international is a massive opportunity for us. Only 20% of our business comes outside the US. So still, I mean, relative to our peers, I have about 70% of their business outside the US. So we have a long way to go, primarily US company that's now starting to expand our, if you look at our business, maybe I'll step back even further, start with the cosmetics category. If you look at cosmetics overall, the number one player in cosmetics is a L'Oreal brand that has $5 billion of global retail sales, but they do that out of 120 countries. If you look at the Elf brand, we have about $2 billion of global retail sales, and we do that out of 16 countries. So it shows you the power that we have in terms of long term as we continue to expand our portfolio, what we can do, that's just on Elf. We believe we have massive opportunity on Elf Skin, Notorium, and Road. We already talked the Road one. Notorium is another brand that we see a lot of opportunity. In terms of the biggest countries we're in right now, there are really four countries that are our big countries, the U.S., Canada, the U.K., and Germany. And I would say in the U.K. and Germany, we did have some challenges last year. in the uk we saw a more promotional environment um and in germany we were lapping our massive launch in rossman in germany the year before the good news is coming out of q4 uh we saw major progress in both markets uh the uk went from negative to positive trends uh we continue to build week after week in the uk and germany again has has gone quite positive as particularly as we've launched to DM as overall market. And the reason why both of them have inflected positive is we now have more than 70% ACV coverage in both markets. So we're able to put the full e.l.f. model on. It's been actually quite a while since we had any awareness advertising in either the UK or Germany. As soon as we've put on a little support from an awareness standpoint, we saw most immediate results in the business in both countries. And so we feel good about the model we have, particularly as we build up acb coverage at the same time you'll continue to see us seed new markets and you'll see us seed new markets really in two ways but one of our strategies is win with the winners so i already talked about sephora and our plans not only on road with sephora but also with notorium elf cosmetics and uh had two of the best launches of sephora last year with sephora in Mexico, Sephora and the GCC. We see further opportunity with Sephora. So Sephora is certainly an opportunity for us to continue to strengthen that relationship globally over time. Second is we've seen real tremendous progress with Amazon TikTok shop in the US. And we see this greater global potential with those platforms as well. We're one of the fastest growing brands or our portfolio brands, amongst the fastest growing on Amazon, TikTok shop plays well into the strength that we have on social. So if I think of connected commerce, the strength we have on social directly translates in terms of what we're able to do there. So one is continue to follow areas of where we have advantage, whether it be Sephora, whether it be Amazon, TikTok shop. And the second is a disciplined approach country by country. And it will vary by brand in terms of how we are able to do that. We do have a team in London that is responsible for the NIA region. We have opportunities in other parts of the world, but it's the same discipline sequencing that we've done. You know, even if you look within the U.S. of how we went from Target, probably like five, six years before we went into another customer in Walmart, a couple of years before we went into Ulta and continue to expand from there. The same is true internationally. It's still a massive opportunity and still a tremendous amount of white space.

Operator

Just a couple minutes left, and I guess both a financial capital allocation type question, but also just a strategic question on the portfolio. We talked through Elf Cosmetics, Elf Skin. We haven't talked much about Neuterium, but it's there, plus ROAD. So you have lots of opportunities across those four core categories today. at what point again both financially and strategically would a fifth brand make sense you know how you know on your rank order of importance how much time are you thinking spending on so i'd say look the the the primary focus for us is realize the organic growth we have within our existing portfolio just this tremendous opportunity and since we didn't talk that much about notarium i didn't mention it was the fastest growing skincare brand amongst the top 50 in the US.

Tarang Amin, Chairman

We've expanded the footprint of Notorium into Ulta Beauty, into Shoppers, Drug Mart, Boots, Sephora in Australia, New Zealand. There's much further expansion. We just most recently took it into Walmart, have a massive opportunity there. So I'd say the number one focus is realize the potential of our existing portfolio. As I mentioned earlier, we have an exceptionally high bar for M&A. If we saw another Notorium erode, which are incredibly rare, we would acquiring. We have a very strong balance sheet as we go through, and particularly given our acquisition approach, where we bring in an entire team, enhance that team and our ability to go there. So I would say the first priority from a capital allocation is investing behind our brands, looking at strategic extensions where they make sense. Second, but we also will take advantage. We have, in the last few weeks, we purchased another $50 million of stock. When we see a disconnect between the stock price and the fundamentals, both with what we've delivered as well as the white space we have, we took advantage of that. So we've now, I think we had a half a billion dollar authorization. I think we've gone through about $150 million. So we still have $350 million left in terms of capacity to continue to kind of repurchase as we see that first priorities clearly in our brands. But we will take advantage, particularly in times like this where we just, the fundamentals, the stock price doesn't reflect the fundamentals and particularly the future that we have.

Operator

So with that in mind, in closing thoughts, what should investors be most focused on as they think about investing in Elf to get the stock price higher?

Tarang Amin, Chairman

Well, I'd say two things. One is focus on the consistency of the performance over time. It's so easy to get trapped in current consumer sentiment or where things are and the core durable areas of competitive advantage we have. And then the second thing is the white space we have ahead of us. I'm more excited today and I've been CEO more than 12 years than I've ever been in terms of the future potential of this company given the strength of the portfolio and how much white space we have Fantastic Terang, thank you so much Thank you Thank you all for joining us and enjoy the remainder of the conference Thanks