E.l.f. Considers M&A, Brand Incubation

E.l.f. is thinking about M&A again, now that the business is back on track. Chief executive officer Tarang Amin said E.l.f. is considering “strategic extensions” — either “small, tuck-in acquisitions” or launching another brand. Without a major shift, E.l.f. is projecting low- to midsingle-digit growth over the next three years. But, with either more shelf space, or a “strategic extension” the company projects growth in the mid- to high-single digits. “We’re really interested in small, tuck-in acquisitions, using some of that cash that we’re siting on either in a brand that brings us in an adjacent space or a capability we don’t have that could leverage all of the investments we’ve made in our team and infrastructure, particularly when it comes to customer relationships, our supply chain, our innovation model — we could see that be accretive to our business — or, introduce a new brand,” Amin said. “Both are interesting to us in that strategic extension bucket,” he added. Amin gave an interview surrounding the company’s earnings for the quarter ending Dec. 31. For the quarter, E.l.f.’s net sales were $80.7 million, up from $78.6 million in the prior-year period. Net income was $8 million, down from $9.67 million in the prior-year period. The prior-year

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