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    Alec Legg • Canaccord Genuity Group Inc.

    Alec Legg's questions to elf Beauty Inc (ELF) leadership

    Alec Legg's questions to elf Beauty Inc (ELF) leadership • Q1 2026

    Question

    Alec Legg of Canaccord Genuity inquired about the amount of inventory impacted by the 170% tariff rate versus the 55% rate and the timing of its flow-through. He also asked for a breakdown of the drivers behind the expected Q2 EBITDA margin deleverage.

    Answer

    Senior VP & CFO Mandy Fields explained that inventory is a mix of products purchased at various tariff rates (25%, 55%, and 170%), with a higher portion of the 170% rate inventory expected to flow through in Q2, pressuring gross margin. She attributed the Q2 EBITDA margin decline to three factors: this gross margin pressure from tariffs, a timing shift of marketing spend from Q1 into Q2, and the inclusion of Rhode's SG&A expenses without its corresponding sell-in revenue.

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    Alec Legg's questions to Kenvue Inc (KVUE) leadership

    Alec Legg's questions to Kenvue Inc (KVUE) leadership • Q1 2025

    Question

    Alec Legg, on for Susan Anderson, asked if Kenvue is observing consumer trade-down to private label and which brands or categories are proving most resilient versus those where consumers are seeking more value.

    Answer

    CEO Thibaut Mongon asserted that Kenvue is not seeing a global trade-down to private label, noting that consumer behavior in health categories remains consistent and focused on trusted brands. He stated that Kenvue's exposure to private label is limited and that private label penetration in their categories has recently declined. The company remains focused on providing the right value proposition through various pack formats and price points.

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    Alec Legg's questions to Sally Beauty Holdings Inc (SBH) leadership

    Alec Legg's questions to Sally Beauty Holdings Inc (SBH) leadership • Q1 2025

    Question

    Alec Legg, on for Susan Anderson, asked about the current promotional environment compared to prior periods and for more detail on the drivers of gross margin, specifically if the lower shrink benefit would continue.

    Answer

    CEO Denise Paulonis noted that while value remains important, promotional levels and frequency were relatively flat year-over-year, with a focus on strategic promotions to drive volume. CFO Marlo Cormier explained that gross margin expansion will continue but moderate in the second half as the company laps prior-year shrink improvements and promotional strategy changes. However, she affirmed that Fuel for Growth initiatives will provide a consistent benefit.

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    Alec Legg's questions to Olaplex Holdings Inc (OLPX) leadership

    Alec Legg's questions to Olaplex Holdings Inc (OLPX) leadership • Q3 2024

    Question

    Speaking for Susan Anderson, Alec Legg asked for a breakdown of the Q4 sales guidance reduction, specifically how much is attributable to the international realignment versus U.S. performance. He also inquired about the expected timeline for international sales to stabilize.

    Answer

    COO & CFO Catherine Dunleavy confirmed that the weaker international outlook is the primary driver of the reduced Q4 guidance. While not providing a 2025 timeline, she noted that U.S. sell-through is showing signs of stabilization and the company intends to apply that playbook to its international markets. She added that Olaplex's strong balance sheet enables it to make these necessary long-term decisions.

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