@GDavenport @ibuildthings I’m curious for your take if there is indeed a widespread shortage of ELF products in physical stores if this is a good or bad signal for the company’s stock price?
On one hand demand could be very high and sales are ramping up significantly. On the other hand a supply shortage could hurt results. A side effect could be more sales are going online. I’m not sure the impact supply shortages could have for online sales as well.
On an unrelated note I picked up on something interesting from the conference call on another read through with regards to international.
The CEO said,
- There’s a tremendous amount of pent-up demand for the brand. It comes from much of our social feed and social strength in the US which is consumed outside of the US. So when we launch Douglas Italy, not only were lines down the block for when we opened, but we quickly rose to the #1 brand in Italy, not only in mass, but across prestige. We recently found the same thing when we went into Etos in Netherlands where we are not complete with the rollout, but already the #1 brand in cosmetics. We’re finding consumers internationally are waiting for ELF and when we enter the market “you see this tremendous excitement”.
It seems like their social media campaigns and marketing are paying off huge when they go international. Basically there’s a side effect of all the marketing they did in the US where it goes viral globally, and consumers outside the US are waiting to get access to the brand.