What could go wrong

1. 1Retailer concentration: Target, Walmart, Amazon and Sephora together accounted for 52% of net sales (fiscal year ended March 31, 2026, high); a change in orders or business problems at a major retailer could affect sales.
2. 2Trade and supply-chain changes: the company sources most products from third-party manufacturers, primarily in China. Its latest quarterly report describes changing U.S. tariffs and says it may not be able to fully offset tariff costs or find alternative sources.
3. 3Product and brand performance: if new products do not sell as expected, or product quality, safety or public perception damages a brand, sales and the company’s reputation could be affected.