e.l.f. Beauty stock falls on January sales concerns

Published 04/02/2025, 21:30
© Reuters.

Investing.com -- Shares of e.l.f. Beauty (NYSE: NYSE:ELF) tumbled 7.4% amid concerns over January cosmetic sales following recent Nielsen data. The company saw a decrease in sales ahead of its earnings report set for Thursday, with Nielsen reporting a 2% decline in e.l.f. Beauty’s sales year-over-year (YoY) in the latest week, including Amazon (NASDAQ:AMZN), and a 7% decline YoY when excluding Amazon.

TD Cowen analyst Oliver Chen noted that while e.l.f. Beauty’s sales remain muted due to pressure in the cosmetics category in January, the brand continues to gain market share, albeit at a slower pace. "ELF (Buy, $93.44) total sales fell by -2% in the latest 1 week reported, down from +5% prior week, and grew +2% in the latest rolling 4 weeks reported," Chen said, highlighting that on a 12-week rolling basis, e.l.f. sales increased by +12%.

DA Davidson analyst Linda Bolton Weiser also commented on the brand’s performance, reiterating a Buy rating and a $170.00 price target on e.l.f. Beauty. "For the March quarter-to-date, Y/Y growth notched lower to +2.1% from +3.0% despite easier prior-year comps," Weiser stated, expressing caution about the company’s ability to surpass expectations for the fourth quarter, given that the consensus sales are projected at +19% YoY.

The Nielsen data and analyst comments provide a mixed picture for e.l.f. Beauty, with sales declines in the most recent week contrasting with share gains and overall growth on a 12-week basis. Investors will be closely watching the upcoming earnings report for further insights into the company’s performance and future outlook.

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