The Estee Lauder Companies Inc (ELAA.SG)

E.l.f.'s success is due to a mix of 'prestige and value': CEO

E.l.f. Beauty (ELF) is on an impressive growth trajectory, surpassing $1 billion in sales for the first time ever in a fiscal year and reporting a fourth quarter earnings beat. Chairman and CEO of the beauty powerhouse Tarang Amin joins Asking for a Trend to discuss this remarkable achievement. Amin attributes the company's growth to a combination of factors: "Consistency, leading growth, and the white space we see ahead of us." He notes that the company's sustained momentum, coupled with its ability to continue innovating, is something "investors can appreciate." On the beauty company's price point, Amin says, "Value is one of the things we're most known for." In an era where consumers are under pressure due to high inflation, the company's ability to offer "prestige-like quality at these extraordinary price points" is resonating well with customers, Amin adds. Regarding international expansion, Amin notes that Canada and the UK have shown substantial growth for the company's margins. E.l.f. has also ventured into Italy and the Netherlands: "There's pent-up demand in these countries before e.l.f. gets there," Amin says. "The real insight here is you used to have to pick. You'd either do prestige brands, but it'll cost you a lot of money, or you went to value," Amin says. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Angel Smith