At least that's what Tarang Amin, e.l.f. chairman and CEO, told TheStreet in an interview recently after the cosmetics company reported a massive second-quarter earnings beat of 12 cents a share, compared to estimates for earnings of a scant 3 cents a share.
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Amin's statement comes after an Alphabet Inc.'s (GOOGL) - Get Report Google engineer's manifesto against the tech giant's diversity efforts went viral. The main argument presented by the employee, who has since been fired, was that women are less suited to be engineers than men -- an argument that Google CEO Sundar Pichai swiftly denounced.
e.l.f. reported revenue of $55.9 million for the three months ended June 30, higher than the $55.7 million Wall Street expected. The company reiterated its full-year guidance of a 24% to 28% net sales growth.
Here's a condensed and edited version of TheStreet's interview with Amin.
Question: What led to your decision to reaffirm guidance?
Answer: It's our approach. We go into each year providing really strong guidance and execute against it. We feel 24% to 28% sales growth is quite strong relative to anything else out in the market place.
Q: Seeing as you are always coming out with new products, what goes behind a new launch?
A: This last quarter we had 25 launches, 10 of which were First to Matte, items that didn't exist in the market place or only existed in prestige that we made more accessible to consumers. So, the Mad for Matte eyeshadow palette (launched August 8) was an extension on something that we had that has been really successful. In fact, if you go on [our website], you'll see two to three launches every week. It goes back to our target, our consumer, who's a makeup enthusiast. Our ability to bring it to her fast and in great volume allows us to fuel our growth.
Q: How do you get products out so fast?
A: It's an advantage we've honed over the last 15 years. We have an incredible team. Everyone in the company is passionate about innovation. It's about our culture of speed. We make big decisions really quickly and one of the big enablers of that is a company full of makeup enthusiasts; 85% of our company is women, over 75% are Millennials, over 60% are diverse. Our company is made up of the same core consumer that we're targeting.
Q: How big is e-commerce for e.l.f. and how big do you want it to be?
A: Last year, our sales were roughly 80% from national retailers and about 20% from our direct-to-consumer business which is a combination of our e-commerce business as well as our own stores. We have about 19 stores. We're a true multichannel brand and we think that's the right proportion. We plan to grow all three channels - through retail partners, e-commerce and our own stores.
Q: How open is e.l.f. to being acquired?
A: There's an old quippy line that goes, "We're a public company so we are on sale every day in a way." But, our primary focus is on the tremendous opportunity in front of us in terms of making luxurious beauty accessible. It's an organic growth story here. We have so much white space when I look at our existing customers, new doors we can be in. That is our focus.
Q: Are you concerned by the growing promotional environment in department stores?
A: No. We've been around for 15 years, and we've grown every single year regardless of the economic cycle or where the category was. We have these high-quality products at an extraordinary retail value. Consumers love our incredible value proposition so we haven't seen any external factors impact us.
Q: In terms of new products, what's hot this summer?
A: The Beauty Shield Skin Care Collection, which is a lightweight formula with SPF 50 sunscreen. More and more consumers recognize that you need great skin to have great makeup coverage. So, our ability to have both skincare and color cosmetics really tapped into that core insight.
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