Waldencast (WALD) Oppenheimer's 24th Annual Consumer Growth and E-Commerce Conference summary

Market and consumer trends

• Beauty market remains resilient and continues to grow, with U.S. selective beauty up 9% year-to-date and premium beauty historically growing 4%-6% annually.

• Developing markets show strong growth as middle-class consumers seek premium products.

• Skincare outpaces makeup in growth, with clinical, science-based brands gaining traction.

• Younger consumers, including Gen Z and Gen Alpha, are increasingly engaged, influenced by social media trends.

• Clean, vegan, and cruelty-free products align with evolving consumer values.

Brand performance and growth drivers

• Q1 saw 21% sales growth, with expectations for further acceleration driven by increased marketing, innovation, and international expansion.

• Milk Makeup benefits from heightened brand awareness, successful product launches, and expansion beyond North America.

• Obagi's growth is supported by innovation, expanded product penetration, and direct market entry in Southeast Asia.

• Execution risk is the primary concern for sustaining growth, but confidence remains high.

Consumer engagement and marketing

• Obagi targets a traditionally older, high-income demographic but is attracting younger consumers through digital engagement and product innovation.

• Milk Makeup's core demographic is Gen Z and Millennials, but the brand appeals to a broader audience through its values and unique creative approach.

• Social media and influencer partnerships have significantly increased Milk's earned media value, moving its ranking from 22 to 9 among makeup brands.

• Marketing spend for Milk has increased 2.5 times since acquisition, driving top-line and margin improvements.