elf.-beauty-stock-plunges-as-cosmetics-retailer-lowers-outlook-on-weak-january-sales

E.l.f. Beauty Stock Plunges as Cosmetics Retailer Lowers Outlook on Weak January Sales

KEY TAKEAWAYS

  • E.l.f. Beauty shares sank in intraday trading Friday, a day after the cosmetics retailer lowered its outlook for its fiscal full year following soft sales in January.
  • The retailer said it now expects full-year sales of between $1.3 billion and $1.31 billion, below the $1.315 billion to $1.335 billion it had forecast earlier.
  • Shares in E.l.f. Beauty have lost almost half their value in the year through Thursday.

E.l.f. Beauty (ELF) shares sank in intraday trading Friday, a day after the cosmetics retailer lowered its outlook for its fiscal full year following soft sales in January.

The retailer said it now expects full-year sales of between $1.3 billion and $1.31 billion, below the $1.315 billion to $1.335 billion it had forecast earlier, and undershooting consensus estimates compiled by Visible Alpha of $1.34 billion.

“Given softer than expected trends in January, we are taking a prudent approach and lowering our outlook for the final quarter of our fiscal year,” said Chief Financial Officer Mandy Fields, adding that the new outlook for fiscal 2025 reflected a 27%-28% gain in net sales year-over-year, versus a 28-30% rise before.

The reduced guidance comes as the company, known for its vegan cosmetics, reported third-quarter earnings that undershot estimates by a wide margin. The company posted third-quarter adjusted earnings per share (EPS) of 74 cents that missed projections of 2 cents each, as per Visible Alpha. Revenue of $355.3 million, up 31% year-over-year, was above analysts’ estimates, however.

Shares in E.l.f. Beauty are down 20% and have lost over half their value in the past year.

UPDATE—Feb. 7, 2025: This article has been updated to include refreshed share prices and the addition of adjusted EPS numbers.