• by Sarah Mahoney , Yesterday

On store shelves and in social-media feeds, E.L.F. and Bubble are straight-up competitors – buzzy, low-priced beauty products with a strong appeal for Gen Z. But the two are joining forces, launching a hybrid collection, a limited-edition mash-up of their greatest hits, further blurring the lines between skincare and makeup.

The move comes as E.L.F., while reporting blistering sales gains, is struggling with declines in its core cosmetics business.

"E.L.F. and Bubble are fellow bold disruptors, each of us with a community-first approach and an instinct to respond to culture," said Oshiya Savur, E.L.F. Brands CMO, in the announcement. "This collaboration is inspired by what our communities are actively doing: mixing skincare with makeup, layering formulas and making beauty their own. We are bringing that creativity to life through hybrids that deliver care, color and the kind of joy our communities expect from us."

The products recreate what innovative consumers have already been doing, "cocktailing" skincare and makeup to match their changing demands, often mixing, layering and customizing products for their own signature look.

Drop N' Dunk, for example, combines E.L.F. Skin's Bronzing Drops, a best-seller, and Bubble Slam Dunk Hydrating Cream Moisturizer in one package, with two pumps. And Glow Talk blends E.L.F. Cosmetics Glow Reviver Lip Balm shades with Bubble Talk Back Lip Serum, resulting in a glossy serum that delivers color, shine and lasting hydration.

This week, E.L.F. Beauty, the parent company, reported yet another quarter of impressive growth, with total sales rising 36% to $479.4 million, driven by strong performance in both its retailer and ecommerce channels. That marks the 30th consecutive quarter of sales gains, with especially strong results from Naturium and Rhode, the Hailey Bieber brand it acquired for $800 million last year. Overall business trends are so good, in fact, that it raised its full-year forecast, and now expects sales to rise 18% to 20% for the full year, up from a previous forecast of 12% to 14%.

Yet organic sales growth in the company's core business decreased in the high single digits, as expected. The company has been experimenting with selective price reductions to see if it can win back customers. It says trends in that division are improving, encouraging some observers.

"We are focused on traction with efforts to drive stronger growth for the E.L.F. brand," writes Rupesh Parikh, an analyst who follows the company for Oppenheimer, "which appears to have some green shoots." And the unexpected strength of Rhode, contributing $160 million in sales in the quarter, continues to be a positive.