Thu, 06 Feb 2025

Thu, 06 Feb 2025 E.l.f. Beauty stock tanks after retailer cuts guidance, citing 'soft' January amid TikTok saga and LA wildfires

E.l.f. Beauty has been one of the cosmetic industry's biggest winners, but its growth has slowed and recent product launches have underperformed.

* E.l.f. Beauty cut its full-year guidance due to a 36% drop in profits and "softer than expected" sales trends in January.
* The company reported holiday sales that were higher than expected but profits that narrowly missed estimates.
* Shares of E.l.f. fell more than 20% in extended trading Thursday.
* For the fiscal third quarter, E.l.f.'s net income was $17.3 million, or 30 cents per share, compared with $26.9 million, or 46 cents per share, a year earlier.
* Sales rose to $355 million, up about 31% from $271 million a year earlier.
* For the full fiscal year, E.l.f. is now expecting sales of between $1.3 billion and $1.31 billion, below estimates of $1.34 billion.
* The company is also expecting adjusted earnings per share of between $3.27 and $3.32, far below StreetAccount estimates of $3.54.
* CEO Tarang Amin attributed the slowdown in sales to an overall decline in the beauty category, tough prior-year comparisons, and recent product launches that did not perform as well as previous new items.
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