Please see the Morgan Stanley Research website at www.morganstanley.com/researchdisclosures or contact your Morgan Stanley representative if you have any questions. And with that, I'm Darren Mohsenian, Morgan Stanley's household products and beverage analyst. We're very pleased to welcome e.l.f. Beauty's Chairman and CEO, Tarang Amin, and Senior Vice President and CFO, Mandy Fields. So maybe, Tarang, to start with, you have a long history of outsized share gains within mass cosmetics over the last few years. Maybe you can just take us back with what you think the key drivers have been over that period of time, and then we can talk a little bit about the go-forward from there. Sure. So we've had 23 consecutive quarters of both net sales and market share gains. And if you look at the drivers of both of those, it's really four things, I would say, or actually five things. One is the passionate team of owners and a high-performance team culture. Two is our value proposition, being able to take the best of beauty and make it accessible. Three is our powerhouse innovation, a unique ability to be able to have prestige quality at these incredible prices. Four is our disruptive marketing engine, a unique ability to engage and entertain our community. And the fifth is a productivity model that's generated strong comp growth year after year with the most productive brand that any of our major retailers will carry on a dollar per basis. Great. And as you think about the go-forward from here, any changes in terms of what drives market share from here over the next few years as you look out relative to history? No. I think it's going to be pretty consistent. We're not going to keep promising 300 basis points of market share growth, but just even in the last quarter, our weekly market share was 195 basis points, and for a broader perspective, nationally, we're the number one unit share brand, the number two dollar share brand with about a 12% dollar share. Yet at Target, our longest-standing national retail customer, we're their number one share brand with over 20% of their entire category, and so we see others who are maybe four or five years behind Target following that same trajectory, and so these drivers, fundamental drivers, are working, including at Target. I mean, Target, we announced on our last call, is rewarding the brand with additional space coming here in the spring. We continue to pick up space, continue to drive strong productivity, have an incredible consumer appeal, particularly among Gen Z, Gen Alpha, Millennials, and have the innovation that our customers want. So we continue to see major opportunity in color cosmetics to continue to grow share, but also in skincare. We have two of the fastest-growing skincare brands in e.l.f. SKIN and Naturium, and we're making great progress there. e.l.f. SKIN 's now a top 10 skincare brand. We have major plans for both e.l.f. SKIN and Naturium, so we feel really good about our share growth prospects both in color cosmetics and in skin. Great historical share performance hasn't gone unnoticed by the competition. You talked about the marketing success historically, the innovation success. You've been sort of at the forefront of the industry on those fronts. How do you stay ahead of the competition going forward and create sustained competitive advantage? I think we continue to innovate and we continue to disrupt the category. I think one of the things you can count on with e.l.f. is we have an incredibly robust innovation pipeline with this ability that I said to have these holy grail products that we take inspiration from, prestige or our community, and be able to bring them at incredible prices. Our marketing engine, we continue to disrupt from a marketing standpoint in terms of how we engage and entertain our community. I'd say those fundamentals are still intact no matter how much people will try to copy us. By the time we were one of the first beauty brands on TikTok, by the time others started copying us on TikTok, we took it to a whole different level by our own channel on Twitch. We have the number one branded experience on Roblox. So our platform's quite broad in terms of our ability to continue to engage consumers and continue to drive that interest. Great. That's helpful. And maybe we can talk about the short term a bit. We've obviously seen very strong historical share gains. Last quarter, you saw deceleration, obviously still gaining share, as you mentioned. Just put that in perspective for us, what you think drove that. Is that more of an aberration? How do you put that in sort of longer-term context, what we've seen recently? Yeah. Well, I'd say the share gains were probably ahead of what we expected. Last year, we grew, I think, over 330 basis points of market share, growing another 195 basis points on top of that. We actually felt quite good about it. I think we're obviously comping huge numbers from last year. Last fiscal year, I think we delivered 71% net sales growth. This year, we've outlooked 28%-30%, which is still very strong growth. And so I would say if there's any slowdown, I'd attribute it to probably two things. One is we did see the category dip, like a lot of consumer categories kind of headed kind of through back to school. We've seen that start to recover. Then I'd say we've been incredibly successful in our new product launches, but an insight to maybe reanimate some of our core franchises, like our Power Grip franchise. We just did a major activation over Thanksgiving. That will continue. Almost seen an immediate result there. So I feel really bullish about our ability to continue to gain market share. Right. Okay. And you've had really strong distribution expansion and shelf space expansion. We've seen velocity slow a bit if you look at the scanner data. Maybe put that in context and how you think about that longer term. Yeah, so as I mentioned, we have this productivity model that's been able to drive higher dollar per foot sales at every one of our major retailers. Sometimes when we pick up new space, it takes us a cycle or two to fully optimize that space. We've done that over and over again. Major space gains. You can take a little bit of a dip in your dollar per foot productivity, but over time it goes up. A good example is Walmart. We picked up almost 50% space in Walmart, and we still saw very strong growth. We're now the number two brand within Walmart. We're the only major brand growing share there. Walmart itself is growing share, so I feel really good about that trajectory of continuing to be able to optimize that for the future, and we've seen that across every one of our major customers. Okay. And the category declines we've seen, can you put that in perspective versus long-term performance of the U.S. mass cosmetics category? What do you think is really underpinning that and behind that? And you touched on perhaps things picking up a bit this holiday season. Going forward, we see easier comps from here. So do you see a path to recovery in U.S. mass cosmetics as you look at other? I'm pretty bullish on U.S. mass color cosmetics. I mean, I've been CEO of e.l.f. Beauty now for almost 11 years. You see sometimes momentary dips in the category. I saw one back in 2014, 2018. Of course, the pandemic really impacted the category. And every instance of that, you see the bounce back. It's one of these great categories. It's absolutely essential for self-expression, a high degree of interest in new products, in trends. And so particularly given the innovation pipeline we have coming this spring, I'm very bullish both on for e.l.f. especially, but also for the category. Okay. Maybe we can stick to innovation for a minute. Can you just give a little more insight into your process and why you've been so successful there, and also as you look at the pipeline over the next few quarters here versus the last few quarters, just what your thoughts are around revenue contribution and how excited you are about that forward innovation pipeline? Yeah. I'd say there's two main parts of our innovation approach. One is we take inspiration from our community and the best product in prestige. In fact, our community gives us many of the biggest ideas we have. They'll say, "Hey, there's a prestige lip oil that took off, but it's $40. I can't afford it." We'll study that product. We'll put our e.l.f. twist on, put it in a completely different hydrating formula, a better applicator, and introduce ours at $8 versus the $40. You'll see overnight it go viral and even hard for us to keep in stock. We've done that time and time again across 18 segments where we have the number one or two share in the market. And we're also conquesting some of the bigger categories. We're underdeveloped in share, so we're seeing progress in both those areas. And the second thing is this real focus on franchise builds, our Power Grip franchise, Halo Glow franchise. Each of these core franchises, every time we launch something new in the franchise, you see the entire franchise grow, and so I think that focus on both the productivity, really following that insights, and just how integrated our innovation model is to our supply chain that gives us the best combination of quality and cost. Right. Okay. And maybe looking at the external environment a bit here, given the category weakness we've seen, what are you seeing in terms of promotional environment? How does that impact your business? Maybe how has the category impact played out in terms of impacting your market share? And And give us some context there. And also just with what's going on in the drugstore channel, put that in context for us. It's not a huge piece of your business, but your thoughts around some of the store closures there coming up and how that impacts the industry and e.l.f.? Yeah. So I would say that from an overall category standpoint or a competitive standpoint, you do see periods of higher promotional activity. I think right now we're seeing higher promotional activity at Ulta, at Sephora. Historically, that hasn't really impacted us that much because people can't keep promotions on forever, and those who have promotions, you see a pretty big trough after the promotion, whereas our growth has been consistent, and you can see that being able to go through, and so from that standpoint, that doesn't really bother us. We're an extraordinary value every day at $6.50 average unit retail versus legacy players at over $9, prestige over $20. We just have that phenomenal value day in, day out that really resonates with our community. Great. And speaking about the external environment, tariffs are obviously a big topic of discussion. So Mandy, maybe you can just review your sourcing strategy. You talked about this on the last earnings call, but plans as you look going forward, understanding it's a bit open-ended and how you potentially manage any tariffs in China, both in terms of switching your sourcing, but also levers you can pull to offset any impact that you see? Sure. Well, I would say, first of all, the narrative on tariffs has improved over the last couple of weeks. I mean, we had been hearing of incremental tariffs at a 60% level. Latest kind of talk is closer to a 10% level. So that is a dramatic difference. In either case, we've been through this before. Back in 2019, we were impacted by 25% level tariffs, right? And the tools that we had in our toolkit at that time, we took pricing on about a third of our portfolio. We had cost concessions and savings from our suppliers. Foreign exchange moved into our favor, and we were actually able to build margin out of that scenario. As we look forward to today, we have a couple more levers that we can pull. One being top-line diversification. So international was about 21% of our net sales in the latest quarter. As we have higher international sales, those products go into those countries without a tariff. So that is a help from a gross margin standpoint. The second is supplier diversification. So if we rewound the clock back to 2019, all of our products was coming out of China. Today, we have about 80% coming out of China. And so that is also a help from a supplier diversification standpoint. And again, we do have pricing as a tool, but we also want to be very judicious. So Tarang just talked about our value proposition and how important that is to us. And so we've always been very mindful of when we've had to take pricing, but we have all of those tools at our disposal. Right. And Tarang, maybe you can just review your thoughts around pricing strategically here. We have a stressed consumer. We've got a weak category, but we also have historical instances where you've taken pricing and you've seen very little demand elasticity. And as you mentioned, your brands do offer incredible value. So just putting everything together, how do you think about pricing? Is it more of a judicious strategy here? Even if you were to see some cost pressures, how do you think through that? Yeah. So our approach here again is different where we've held pricing for external events. If you look at our gross margin progression over the years, when I started, I think gross margins were closer to 42%. They're 71% now. Most of that gross margin progression has been driven by innovation mix. As we have these holy grails, since the only other thing like it is a prestige item, it gives us a pricing umbrella to still have a phenomenal value and be able to also drive gross margin. The pricing that we've held in our 20-year history, we've only taken two pricing actions. One in response to the 25% tariffs in 2019, one in response to the inflationary pressures everyone's facing post-pandemic. A number of our competitors took pricing in the last year. We chose not to, to be able to really drive. I think they were taking it because they thought they could. That's not our approach. Our approach is make sure we have incredible value and hold pricing for levers like if there are additional tariffs or any additional inflationary pressures. That strategy has worked well. If you take a look at the top 10 brands in color cosmetics, we're the only ones who've driven meaningful unit volume growth. That's been pretty consistent for the last 23 quarters. We feel good about this great balance we have between strong unit volume growth and then AUR progression really through our innovation. If we had to take pricing, we certainly have pricing power. I mean, particularly in a tariff environment, we saw pretty broad pricing across the industry. Just even if you weren't manufacturing in China, componentry, so much raw has come out of China that we think that would be an environment where others would also be taking pricing. And so I feel pretty bullish about our ability to have pricing as a tool if we need it. And I think a big part of that is we've been really choiceful when we take pricing. Great. You mentioned the shelf space expansion at Walmart. Maybe for a minute, we can talk about your newest customer, Dollar General. Why launch there? Why now? B. Maybe as you think about your overall shelf space opportunity in the U.S. going forward, can you give us a sense of how that compares versus recent history when you have had some pretty large shelf space gains? And C. Spend some time on your argument to retailers and gaining more shelf space. And in this environment, are you seeing more traction there? Yeah. We certainly are seeing great momentum. Not only the space we just gained at Walmart, we announced Target's going to be taking up space on us. Walgreens is taking up space. We continue to pick up space internationally and new countries. Overall, the strategy for Dollar General, to that part of the question, our mission is to make the best of beauty accessible to every eye, lip, and face. So we want to be broadly accessible to our consumers looking for the best of beauty at incredible prices. Dollar General actually has been trying to get e.l.f. for years, and at first, we were a little hesitant because the presentation of beauty in their stores is not optimal. It's a lot of pegs and a lot of product on pegs and not that much branding. We told them that, "Hey, we see a connection here, but we're not sure." They came to us with a big end cap presentation and said, "You design this. Make it the way you want to show up." And I wish I had a side-by-side picture here. We'll do it on the next earnings call to see what their category is versus what e.l.f. is going to look like. And then we decided to do a subset of the doors. And the reason why Dollar General is strategically the right connection is their mission is to serve the underserved. 80% of their stores are in rural areas with less than 20,000 people. Those consumers really only have access to Maybelline, L'Oréal, and legacy brands. We think there's a great opportunity to bring them kind of the best of beauty at accessible price points. And then the approach we're taking is they have 20,000 doors. We didn't go into all 20,000 doors. We went into a subset of their doors, their setting right now, so that we could make sure that the execution showed up right and more importantly, that they could replenish us. We move so fast that we want to make sure we're doing that. If we see that, we see a good connection between our mission and being able to serve consumers that aren't currently being served. Right. Okay, and we've seen you strategically mix up over time. That's been true from a product standpoint, but it's also been true from a retailer standpoint. Just, I'm sure you've done a lot of consumer studies and research. Any concerns about moving into a lower price channel and how that might impact brand equity? How do you think through that? Yeah. So a little bit of our history. We bought the company 11 years ago. And at that time, our only national retailer was Target. And under this mission that I just talked about, we decided we would expand. And every time we expanded, we went from Target to Walmart. We were able to show Target data that said the Targets within three miles of Walmart actually did better when we went into Walmart. We did the same thing again. We went from Walmart to Ulta Beauty. Same thing as we've started expanding in drugs. We've been able to show the incrementality of these different points of distribution and lack of cannibalization. I think we're probably the only company that reported in the last quarter that could talk about expanding distribution in both Dollar General and in Sephora. So it tells you the elasticity of this brand. Our launch with Sephora Mexico is probably one of the best launches I've ever seen. Not only the sales incredible, but we brought in a whole different consumer to there. So I think that's the key for us, the consumer appeal we have is quite broad, that we're able to live in a bunch of different channels. But we're also selective. So when it comes to the drug channel, it has a role in the number of doors they have. But we chose not to go in all drugstore doors because there's quite a big variance between the top-selling drugstores and the ones on the bottom. So I think some of the closures and some of the things that we've heard about have not really impacted us as much because we're really focusing on their top-tier stores where we're going from three-foot gondolas to six and ten-foot inline space and seeing better productivity from that presentation. So I think our distribution strategies, we want to go with retailers that consider beauty important and that we can show up the right way. And that's served us well regardless of whether it's I mean, even when we went from Target to Walmart, we saw incredible results. And at that time, Walmart wasn't as focused on beauty as they are now. And so highly confident of our ability to do that. We're seeing the same thing internationally. Every new market we go into, we're coming out of the gates number one in the stores we're in. You're seeing tremendous momentum. And it really talks to the strength that we have in social. So much of that is consumed outside the U.S. It's already pent-up consumer demand well before we get into a country or a particular retailer. As we saw with Sephora Mexico, saw the same thing with Rossmann in Germany, Etos in the Netherlands, Douglas in Italy. And obviously, we had a very strong business in the U.K. already with Superdrug and Boots, as well as in Canada with Shoppers and Walmart. So we've got a very broad array of retailers. The one unifying element of them is do they consider beauty important and do they reach a broad set of consumers that we want to reach? That's helpful. Maybe we can switch off the retail store sales to e-commerce and digital. Tremendous momentum over the last year. The business has basically doubled. A. Just short-term, a bit of a slowdown in the most recent fiscal quarter. Is that more just comps or any thoughts there? B. As you think out longer term and you look at the U.S., given we've seen a lot of volatility in digital mix over the last few years, certainly a lot of that was driven by COVID and then the recovery post-COVID. What are your thoughts on how the business trends from a digital standpoint for you and e-com sales, over the next few years relative to retail store sales? We're quite bullish on our prospects on digital. If you just take a look at our growth, not only in the last couple of years, but even this last quarter, digital is growing faster than our retail business. And it's really being driven by two different things. One is our investments over time in our Beauty Squad loyalty program. We have 5.3 million Beauty Squad loyalty members. We're still the only major mass brand with its own direct-to-consumer site. And that loyalty program not only will drive better results on our own e-com business driving that, but we get a rich source of first-party data to really improve our marketing and get insights from our consumers and that community of Beauty Squad. The second thing is we have been growing with retailers that consider digital more important. So if I look at Target, Ulta Beauty, a number of them, as well as Amazon. Our business is quite strong in Amazon. And we've now got to a point where not only do we see much greater potential on Amazon and these different retailers, but also taking them to other markets. So we opened up Amazon in Canada, the U.K., Germany, Italy, and there will be more countries that we can continue to follow that. So we feel as we've increased digital penetration over time, there's still an opportunity to further increase that penetration. Great. Why don't we talk about a couple of expansion areas which you touched on in terms of international and skincare? Maybe just a bit of state of the union on where we stand today. You've launched in Italy internationally. You talked about Germany and Australia more recently. So just some learnings over the last year or two, thoughts on how quickly you expand internationally over time. What are the key criteria in deciding that? And then maybe we'll go back to the skincare side. Let me stop there. I'd say two things on international. One, it's a tremendous white space opportunity. Our international business in the last quarter is 21% of our business. Most of our competitors have over 70% internationally. So it's a massive opportunity. The second thing is it's remarkably similar to our experience in the U.S. in terms of how we're successful and we're able to roll out. We have a very disciplined rollout strategy. We typically go and partner with one retailer that considers beauty very important. Our success there then attracts others. That happened in the U.K. We started with Superdrug in the U.K. Boots came calling on us saying, "Hey, we really want e.l.f. We're seeing what you're doing in Superdrug," and we have now and then you get the same kind of arms race that you see in the U.S. Target will increase space. Walmart will follow. Ulta will follow. And you've got this virtuous cycle of people continuing to drive because of the productivity we deliver. That's exactly what happened in the U.K., where Superdrug expanded space. Boots expanded space. Superdrug expanded again. Boots is expanding. So that's worked. And we're following that same approach in terms of our rollout strategy. It's that same discipline sequence approach. So we find a leading retailer. Rossmann in Germany is a great example. The day we launch in Rossmann, dm calls us and says, "Hey, wait, why did you launch with Rossmann? We're really interested in e.l.f." And so you get this pent-up demand not only from consumers, but also from retailers. And the way we handle that is we want to keep discipline in terms of how we roll out. The two opportunities internationally is not only expanding into new countries with new retailers or existing retailers that we have in another country, but also increasing our penetration within a country we've been in. My example in the U.K., over time, we'll have other retail partners in each of the countries that we've recently entered in. So just a huge opportunity. Our approach is you're never going to hear me talk about like, "Hey, we just opened up 30 countries." We want to make sure that we can use that same model we've used in the U.S. to drive up productivity year after year and make sure that each customer we're in is happy with what they're seeing. Great. And any learnings or success you'd care to share from Italy as you think about that? Yeah, so I would say the learning back to this I mentioned earlier, our strength on social. When we were entering, when we were partnering, approaching Douglas Italy with that launch, we asked Douglas, "Hey, how much should we customize this brand for the Italian consumer? We don't even have anyone in Italy. What should we do?" And they said, "Not much. Italians like hot American brands." Sure enough, the day we launched, there were lines all the way down the block. You had e.l.f. and it's maintained it from day one, and Douglas Italy is mainly a prestige shop. In fact, our e.l.f. gondola is right next to Chanel, and it looks like it belongs right next to Chanel. We're their number one brand, not only in units, but in dollars ever since launch. So it tells us that strength that we have, that pent-up consumer demand that I talked about is there. We see the same thing in Rossmann, Etos, every one of the launches, Sephora Mexico. That's one learning. The other learning is when I said there's more similarities than differences, the only argument we had with Douglas when we were about to launch is they said, "You know, I know you guys are big in primers. We have over 60% share of primers in the U.S. That's not really a category in Italy. Italians don't use primer." We said, "Well, we're a test and learn brand, a digitally native brand. Why don't we put our Power Grip Primer, which is the number one SKU in all of U.S. color cosmetics, why don't we put it in? If it doesn't do well, we have plenty of innovation to sub it up with." Well, Power Grip Primer is the number one SKU in Douglas Italy, so apparently, the Italians do use primer. They just didn't know they needed it until they saw all the buzz on e.l.f., and we've seen the same thing in each of the other countries where those core franchises and holy grails that work in the U.S., there's a ready audience in those markets and they're resonating, and so that's actually one of the great things. This is one where we can expand without having to overly customize the success model that's worked in the U.S., and it's great to see that the biggest lesson is just consistency of how strong the productivity is, how strong the sales are, how strong the consumer interest is. And I think one of the stats we talked in our last earnings call is as we're tracking these different retailers and countries, the common theme is we're driving greater productivity. We're driving category growth, higher baskets, a whole new consumer set that's coming into their stores, that younger core consumer. And all of them have loved that. And it's been really, really gratifying to see. Great. Maybe we could talk about another expansion area, which is skincare. Maybe we just start with Naturium and we're a year into that acquisition. So give us an update on where you stand. What are the plans in terms of retailer expansion going forward? What I'd say is skincare is another huge opportunity for us. I'll get to your Naturium question. I'll just give the context of we didn't enter skincare until just a few years ago versus being in color cosmetics 20 years. Came from the insight of we have a very high share of the face category. Consumers were already used to putting e.l.f. on their face and feeling good about kind of our face products. We saw an opportunity in terms of using that same model with e.l.f. of taking some of the best products in prestige and in skincare, period, and making them much more accessible. That strategy for e.l.f. SKIN has worked great. In fact, we're now a top 10 brand in skincare in just a few years. Most of the brands in that top 10 list have been around for decades. So just in a few years, we've been able to show that same model we have on e.l.f. can work. Given the success that we had in skincare and given that global skincare is even bigger than global color cosmetics, we are very open to what other brands can we have as part of our skincare portfolio. And when we saw Naturium, we had to buy it. It reminded me a lot of e.l.f. back when we bought the company. The distribution of Naturium was only in Target, Amazon, and in its own website. So quite limited distribution, yet they were able to go from $0 to $90 million in net sales in less than three years, which is a very hard feat in our category since there's 1,900 cosmetics and skincare brands just tracked by Nielsen. Only 26, I think, have scaled above $100 million in retail sales, not even talking net sales. So we knew there was something special in Naturium. What we particularly liked about Naturium is it had a very strong profile of growth, both on the top line as well as I think it just had EBITDA margins at 20%, which we often don't find. We sometimes find things that have good top line growth, maybe not there on profitability or vice versa. Tremendous amount of white space, and then probably most importantly, it complemented the e.l.f. SKIN brand so well. e.l.f. SKIN is $9 average unit retail. Naturium's $18. The positioning on e.l.f. SKIN is as best as skincare made accessible, particular focus on hydration, SPF, bronzing drops are some of the main categories there. Naturium's clinically effective biocompatible skincare. The formulations are phenomenal. Not only does everything have a clinical justification of the care of that formulation in terms of how it feels. The e.l.f. user base is primarily Gen Z women. Naturium skews more Millennial and 40% of its user base is men, including in the body category. So we love that we have two complementary brands that both have a similar profile in terms of their growth prospects in the white space ahead. Great. Maybe we can switch to the margin side. And obviously, advertising spending is an area that you guys have increased your spending a lot over the last few years. What do you think is the right level longer term? Are you comfortable with the ROI you're getting on the marketing spending? And it does seem like top lines come in much better than expected, and that allowed you to sort of spend more back behind the business opportunely. So just as you think out longer term strategically, what's the right level? And again, it'd be helpful to hear about your thoughts around the payback from this higher marketing. Yeah. Well, maybe let me start with the ROI. We're very pleased with the ROIs that we get on our marketing spend. We've talked about the ROIs being multiples above the category benchmarks, which is incredible. It would actually tell us that we should spend more behind marketing and digital. But how we've managed that is really on a rate basis. So this year, we're targeting 24%-26% of our net sales behind marketing and digital. And we feel great about that range. And in longer term, we'll have to see where we take that. But certainly, based on the ROIs that we see, it would tell us there's more room to go from a marketing and digital standpoint. And we've always balanced that with we've been able to do, I call it the perfect virtuous circle, where we've been able to invest more in our brands and deliver stronger profitability over time. And we like that combination. And that's the reason why we didn't just follow the Nielsen piece and go all the way up to the top, or why we're taking this gradual approach. And it allows us then to also optimize that marketing spend over time in those increments. And we've seen great results. Great. Maybe give us a bit more detail under the hood in terms of what's driving that strong ROI on marketing. Is it more effective tools you're using? Is it where you're spending the money? Is it a shift to digital? What's behind that? Yeah. So we use a Nielsen marketing mix model to give us those ROIs. And it really measures it by vehicles. So across everything from our PR to what we're seeing on social, all of these things, the investments that we're making in digital, what we do with Amazon or with our retailers, all of those things are measured in that marketing mix analysis. And so we're seeing progress across each of those areas. And so that helps us to inform where should we go heavier, where should we pull back, where should we optimize as Tarang talked about. And so we're able to see that across vehicles. Great. Okay. So Tarang, maybe let's look out five years. Obviously, an incredible history of market share success over the last few years. How would you help us dimensionalize the long-term market share opportunity for your business? And also maybe touch on some of the more highly penetrated areas. You mentioned the above 20% share in Target, low 20s% now, or some of your product categories with higher share. What are you seeing in terms of momentum there that maybe informs where you can eventually end up at? Yeah. I'd say we still have a massive opportunity in the U.S., our home market, and perhaps even bigger internationally. And I've been CEO for 11 years. Every. Your participation in this conference has been terminated by the host. Goodbye. Welcome to the conference center. Even a bigger market share opportunity at Walmart. We're number two at Walmart with about a 12% share. We think we can get Target's share. We don't know how high it's up yet on Target. I didn't expect to get to 20% this fast at Target. And so as we take a look, particularly with the plans we have, what we're thinking with them, we think we can get to a higher share position than even the low 20s with Target. Walmart gives even just a much bigger ceiling to be able to go. Ulta, which isn't tracked by XAOC, again, we're one of the most productive brands they carry. And you have this ability to continue to pick up more space, continue to do more things. So I'd say even in our top three customers where we have the most amount of business, I just see a ton of runway from both growth and market share position. And then there's channels where we're underpenetrated that we've been more disciplined in terms of how we roll out. So as I mentioned earlier, drug, we're not in all doors. We like, and we don't want to overspace in drug either. We think that 6 to 10 feet of inline space is the right amount. I see some drugstores where a legacy brand has almost 16 or 20 feet. I think it's too much relative to the traffic a drugstore would have. Grocery, we've been very selective with the grocers who care about beauty. H-E-B is a great example in Texas where they have an incredible beauty presentation, incredible execution. We've seen the same with Meijer. We've seen, obviously, we've gotten into Publix, a number of the Kroger banners, so our ability to be sequential in those to where we have under share to be able to pick that up based on distribution. We talked dollar a little bit earlier, so still, and then just backing up nationally, if you just looked at the Nielsen XAOC, we're the number two brand with a 12% share. Maybelline has around a 17%-18% share, mainly because of the strength that they have in grocery, drug, dollar. If you look at this new Circana tool that shows total market, not only were we the number one unit share brand, but we're very close to L'Oréal, I mean, to Maybelline in the number two position, so we still have quite a bit, and that includes both Prestige and MS. So we see continued opportunities for market share growth, even in the U.S., and even a bigger opportunity internationally. Great. Well, that was very helpful. We really appreciate you being here and flying across the country for us. Thank you so much. Thank you so much. Thank you.