E.l.f. Beauty Reports Strong Growth Amid Tariff Changes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 04 2026
0mins
Source: NASDAQ.COM
- Market Share Growth: E.l.f. achieved its seventh consecutive year of market share growth in fiscal 2026, with fourth-quarter sales growth marking the 29th consecutive quarter, indicating strong performance in the cosmetics and skincare market.
- Strong Financial Performance: The fourth quarter saw a 35% year-over-year revenue increase, with gross margin expanding by 1.4 percentage points to 73%, and earnings per share of $0.32 exceeding Wall Street's expectation of $0.29, reflecting enhanced profitability.
- Successful Brand Expansion: The Rhode brand, acquired by E.l.f., became the largest launch in Sephora's history in North America and the U.K., with plans to launch online and across most of Europe in September, marking a successful entry into the luxury brand segment.
- Tariff Impact and Strategic Adjustments: In response to the new tariff system, E.l.f. raised all product prices by $1 to offset costs, but after lowering the price of Halo Glow Skin Tint, unit sales surged by 38% on Amazon and 36% across retailers, demonstrating significant price sensitivity changes.
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Analyst Views on ELF
Wall Street analysts forecast ELF stock price to rise
15 Analyst Rating
12 Buy
3 Hold
0 Sell
Strong Buy
Current: 63.180
Low
85.00
Averages
112.21
High
136.00
Current: 63.180
Low
85.00
Averages
112.21
High
136.00
About ELF
e.l.f. Beauty, Inc. is a multi-brand beauty company. The Company offers inclusive, accessible, clean, vegan, and cruelty-free cosmetics and skincare products. The Company's family of brands includes e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People, Keys Soulcare, and rhode. Its e.l.f. SKIN is an ingredient-focused, dermatologist-developed formula for every eye, lip and face. The Company operates across beauty categories including eye, lip, and face makeup, beauty tools and accessories, and skincare products. Its color cosmetics and skin care products are broadly sold through food, drug, and mass channels, as well as through department stores and direct and specialty channels. The Company sells its products with retailers in the United States, as well as internationally. It also sells its products online through its own direct e-commerce channels, as well as through other e-commerce websites.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Outstanding Graduate Outcomes: 58% of graduates from the program are now serving on boards, demonstrating the effectiveness of intentional investment in building a pipeline of board-ready talent, further advancing diversity in corporate governance.
- Deepening Strategic Partnerships: e.l.f. Beauty is committed to doubling the rate at which women and people of color are added to U.S. public company boards by 2027 through its collaboration with NACD, showcasing the company's strong commitment to advancing corporate governance and social responsibility.
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See More
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- Board Diversity Initiative: e.l.f. Beauty's 'Change the Board Game' program has launched its third NACD cohort, welcoming 22 executives, marking the largest class to date and highlighting the strong demand for board diversity and inclusivity.
- Significant Participant Growth: Since its inception in 2024, over 60 executives have participated in the NACD Accelerate program, with a 4x increase in applications compared to the previous year, reflecting the rapidly growing demand for board readiness education.
- Outstanding Graduate Outcomes: 58% of graduates from the program are now serving on boards, demonstrating the effectiveness of intentional investment in building a pipeline of board-ready talent, further advancing diversity in corporate governance.
- Deepening Strategic Partnerships: e.l.f. Beauty is committed to doubling the rate at which women and people of color are added to U.S. public company boards by 2027 through its collaboration with NACD, showcasing the company's strong commitment to advancing corporate governance and social responsibility.
See More
Positive Outlook for Cosmetics Industry Amid Growth Trends
- Industry Growth Drivers: The cosmetics industry benefits from sustained consumer demand for skincare, makeup, and personal care products, prompting companies to invest in innovation and digitalization to enhance customer engagement and expand market reach.
- Innovation and Digitalization: Firms are developing science-backed formulations and clean beauty products to meet consumer demand for differentiated offerings, thereby driving industry growth and enhancing competitive positioning.
- Economic Challenges Response: Despite facing high input and logistics costs, cosmetics companies are navigating economic uncertainties by focusing on omnichannel expansion and operational efficiencies to ensure long-term sustainable growth.
- Optimistic Industry Outlook: The Zacks Cosmetics industry ranks #107, placing it in the top 43% of 247 industries, indicating solid near-term earnings prospects, with consensus estimates for fiscal-year earnings having increased by 17% since April 2026.
See More
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- Southwest Airlines Stock Surge: Southwest Airlines shares rose almost 4% after Jefferies raised its price target from $37 to $44, although the new target still indicates a 4.5% downside from Monday's close, reflecting optimistic sentiment regarding the airline industry's recovery.
- Gildan's Stock Plunge: Gildan's stock plummeted about 24% following a negative report from Jehoshaphat Research, which claimed the company's
See More
e.l.f. Beauty Expands into Haircare Market
- Market Expansion: e.l.f. Beauty (ELF) is officially entering the haircare market after successfully launching cosmetics and skincare, introducing products like shampoo, conditioner, and styling sprays to meet the 77% of customers requesting haircare, thereby solidifying its market position in the beauty industry.
- Successful Product Testing: Prior to launching the new haircare line, the company conducted market research and tested two limited-edition styling products, achieving a remarkable 96% positive feedback on social media, indicating strong consumer recognition and anticipation for the new offerings.
- Innovative Advertising Campaign: The new line's advertising campaign features “Bigfoot,” showcasing how its haircare products can help consumers improve their hair quality, leveraging platforms like TikTok and Roblox to engage younger consumers and enhance brand visibility.
- Significant Market Potential: With the U.S. haircare market projected to approach $40 billion by the mid-2030s, e.l.f. Beauty (ELF) can effectively capture the growing demand for organic and premium products by offering high-quality haircare at affordable prices, further driving company growth.
See More
Consumer Goods Companies Face Pressure and Opportunities
- Chewy Customer Growth: Chewy added over 200,000 active customers in the recent quarter, achieving a 7.7% year-over-year sales increase, indicating strong growth potential in the pet food industry, with pet spending expected to reach $165 billion this year, presenting a significant market opportunity.
- Cava Sales Recovery: Cava has seen same-store sales growth in every quarter over the past two years, with a 9.7% year-over-year increase in the latest quarter, demonstrating robust market performance even in a weak consumer spending environment, indicating substantial future expansion potential.
- e.l.f. Beauty Brand Growth: e.l.f. Beauty achieved a 25% increase in net sales for fiscal 2026, and despite facing macroeconomic pressures, the brand continues to expand across multiple product categories, particularly in skincare, reflecting strong market demand and growth potential.
- Investor Opportunities: Despite short-term pressures on consumer spending, stocks of Chewy, Cava, and e.l.f. are viewed as attractive investment options, especially considering their growth potential and relatively undervalued price-to-earnings ratios, making them suitable for patient investors seeking long-term returns.
See More
Growth Potential of Chewy, Cava, and e.l.f.
- Chewy Customer Growth: Chewy added over 200,000 active customers in the recent quarter, driving a 7.7% year-over-year sales increase, showcasing strong market expansion potential in the pet industry, with consumer spending expected to reach $165 billion in 2026, indicating significant market opportunities.
- Cava Sales Performance: Cava has reported positive same-store sales growth in every quarter over the past two years, with a recent year-over-year increase of 9.7%, demonstrating resilience in a challenging consumer spending environment and substantial growth potential for market-beating returns.
- e.l.f. Beauty Products: e.l.f. achieved a 25% increase in net sales for fiscal 2026 and has gained market share for seven consecutive years, with management optimistic about the growth potential of its skincare line, despite facing macroeconomic pressures that could impact margins.
- Investment Opportunities: Despite current market uncertainties, Chewy, Cava, and e.l.f. exhibit strong growth potential, particularly Chewy, which trades at a forward P/E of just 12, attracting long-term investors and potentially leading to significant returns.
See More
