e.l.f. Beauty, Inc. Stock News

The causes of weaknesses include an underwhelming performance by rhode—Hailey Beiber's lifestyle beauty brand—and the impact of tariffs, which are largely beyond the company's control.

Investors punished the stock after management projected slower profit growth for the year. Tariffs and higher marketing spend weighed on margins even as sales kept rising.

Explore the exciting world of e.l.f. Beauty (ELF 3.79%) with our contributing expert analysts in this Motley Fool Scoreboard episode.

e.l.f. Beauty (ELF) stock has dropped 35% after Q2, but I believe the market is overreacting and now offers a buying opportunity. ELF's Q2 revenue grew 14% YoY, but organic sales fell and guidance missed consensus; many issues appear temporary, not structural. Valuation is now attractive, with a forward P/E of 20.5x for 2027, providing a margin of safety and potential for upside if sentiment im...

e.l.f. reported a mixed quarter, and its outlook calls for slow organic growth and an earnings decline for the full fiscal year. Tariffs are hurting the bottom line, and the acquisition of Rhode is driving most of the company's revenue growth.

e.l.f. Beauty Inc (NYSE:ELF) shares fell 34% after the beauty company issued weaker-than-expected full-year guidance and reported a fiscal second quarter sales miss.

e.l.f. Beauty plunged after weak Q2 results and a cautious outlook, but now trades at a significantly lower valuation. Despite shipment delays, tariff pressures, and margin compression, ELF projects mid-teens top-line growth and healthy long-term EPS gains. The stock's forward P/E has dropped to the mid-20s, making ELF undervalued versus historical averages; I maintain a "Buy" rating.

The retailer declined to provide guidance in the prior two quarters, citing tariff-related uncertainty.