3D·

Exciting takeover of ELF Beauty with lots of potential! 🚀

Instagram:

Hailey (Rhode) Bieber has 55 million followers on Instagram alone, $ELF (+1,67 %) only 7 million !

Tik Tok:

Hailey Bieber also has 15.4 million (212.8 million likes) followers on Tik tok , $ELF (+1,67 %) only 2.3 million (50.9 million likes)!

Analyst commentary exciting and $ELF (+1,67 %) was also very euphoric in the earnings call (I listened to it)

BofA Securities raises price target for $ELF (+1,67 %) from 95 to 113 US dollars and maintains its buy recommendation

Analyst comments: "We are positive on the Rhode acquisition for several reasons:

1) As a direct-to-consumer-only brand, ELF has significant distribution opportunities (Rhode will launch in Sephora stores in the US and Canada this fall and in Sephora UK by year-end),

2) Rhode should have a positive impact on gross margin, EBITDA margin and profit, suggesting scope for increased marketing investment

3) ELF strengthens its relationship with Generation Z consumers looking for prestige products. Rhode offers ten products in the price segment between 18 and 38 US dollars (compared to an average of 6.50 US dollars for $ELF (+1,67 %) and 9.50 US dollars for comparable mass-market products).

The acquisition of Rhode is expected to be completed by the end of the second quarter of the financial year."

Analyst: Anna Lizzul

BamBamInvest

@BamBamInvest

3D·

Eleven Beauty Q4 result highlights

$ELF (+1,67 %)

Turnover: USD 332.65 million (estimated USD 327.5 million) ✅
Gross margin: 71%
Adjusted EBITDA: USD 81.4 million (estimated USD 74.5 million) ✅

Strategic update:

Elf Beauty announces definitive agreement to acquire Rhode in a deal valued at USD 1 billion

$ELF (+1,67 %) Beauty has signed a definitive agreement to acquire Rhode, a fast-growing, multi-category lifestyle beauty brand founded by Hailey Bieber and known for its collection of high-performance, skin-focused products. This strong alliance between $ELF (+1,67 %) Beauty and Rhode builds on both brands' shared focus on disruptive innovation and product innovation and lays the foundation for transformative global expansion

3 Comentarios

Chris@Multibagger

Even if you are not invested, you can share a contribution.

https://www.n-tv.de/leute/Hailey-Bieber-verkauft-ihre-Beauty-Marke-fuer-eine-Milliarde-Dollar-article25801032.html

Do you think 1 billion is reasonable?

•

BamBamInvest@BamBamInvest

@Multibagger well there are 800,000 for the time being and the 200,000 are additional if the target is met, which is good. Whether appropriate or not (it's a big chunk) the potential and synergies are huge. $ELF virtually dominates social media with its products among today's youth and is therefore also buying itself in the premium segment. I find it amazing that you can build up a turnover of 200 million + in 3 years with a brand of 10 products and although it is not yet available in retail. Almost only with direct orders through social media and the homepage. Imagine the growth potential if they now get into all Sephora stores US, Canada, UK and then maybe Ulta Beauty. And by expanding into every Roßmann, DM and Müller. I find it extremely exciting, especially the cross-selling effect with $ELF products which further increases the value of the brand and products. $ELF is now also generating more sales due to the price increase and the 1$ is not really significant, especially since the price / performance ratio is still unique. And if the customs duties are now really abolished, this will have an even greater impact. Even my wife now uses several $ELF products on a daily basis, and that's only because I had her test it. And it's only available from Amazon and not from DM, Douglas or Müller stores. So there's huge potential for expansion and this year Rossmann Poland will be next. 👍

••

BamBamInvest@BamBamInvest

@Multibagger 600 million in debt, 200 million in shares and 200 million if certain targets are met, as I understand it. So it could be all right, especially as it keeps the Biebers on board.

The market should also like it from -14% now to +14% pre-market after the earnings call. They dominate the youth and social media and continue to expand their market share, something that $EL, for example, missed out on.

••