OAKLAND, Calif.--(BUSINESS WIRE)-- #avatars--e.l.f. Beauty (NYSE: ELF), the bold disruptor with a kind heart, today announced the launch of Glow Up!, a next-generation makeup game and immersive beauty experience on Roblox (NYSE: RBLX). With 60% of gamers claiming that self-expression through gameplay is more important to them than ever before, e.l.f. is redefining what it means for Roblox players to be their authentic selves in-game.* Designed for players 13+, Glow Up! was engineered to deliver an experie. ...

Key Takeaways ELF gained 140 basis points of market share as brand demand stayed strong in Q2 FY26.ELF invests 24%-26% of sales in marketing, lifting brand awareness across the United States and abroad.ELF expects 18%-20% net sales growth in FY26, supported by innovation and value pricing.Brand-led innovation is emerging as a critical driver of e.l.f. Beauty Inc.’s (ELF) growth momentum in fiscal 2026, enabling the company to outperform a slow-growing mass beauty category. In the second quarter of fiscal 20 ...

Company Performance - e.l.f. Beauty's stock closed at $76.36, reflecting a -2.09% change from the previous day, which was less than the S&P 500's daily loss of 1.07% [1] - Over the past month, e.l.f. Beauty shares have gained 4.84%, while the Consumer Staples sector has lost 0.24% [1] Upcoming Earnings - The company is expected to report an EPS of $0.68, down 8.11% from the prior-year quarter, with a revenue estimate of $452.79 million, indicating a 27.43% increase compared to the same quarter of the previous year [2] - For the annual period, the anticipated earnings are $2.93 per share and revenue of $1.57 billion, reflecting shifts of -13.57% and +19.37% respectively from the last year [3] Analyst Revisions and Rankings - Recent revisions to analyst forecasts for e.l.f. Beauty are crucial as they often indicate shifting business dynamics, with positive revisions reflecting analyst optimism [3] - e.l.f. Beauty currently holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate remaining stagnant over the past month [5] Valuation Metrics - The company has a Forward P/E ratio of 26.58, which is a premium compared to the industry average Forward P/E of 8.06 [6] - e.l.f. Beauty's PEG ratio stands at 4.19, while the average PEG ratio for cosmetics stocks is 0.86 [6] Industry Context - The Cosmetics industry is part of the Consumer Staples sector and currently holds a Zacks Industry Rank of 206, placing it in the bottom 17% of all industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Key Takeaways ELF shares have dropped 37.9% amid slowing organic growth, margin pressure and a tougher outlook. Core sales turned negative as retailer delays, rising tariffs and high SG&A weighed on performance. The Rhode acquisition boosts the portfolio but adds debt as ELF faces sustained cost and margin headwinds.e.l.f. Beauty, Inc. (ELF) has seen a sharp reversal this year, with shares sliding 37.9% in the year-to-date period. The pullback reflects growing investor discomfort with slowing organic growth ...

Core Insights - E.l.f. Beauty has experienced a significant decline in stock value, down 42% over the past year, despite gaining market share from traditional cosmetics leaders [1] - The company faces challenges due to high inflation and tariffs affecting its supply chain, particularly since 75% of its products are manufactured in China [3][5] - E.l.f. is capturing market share as consumers shift from luxury to mass brands, and it recently launched the luxury brand Rhode at Sephora, marking a successful entry [4] Financial Performance - In the fiscal second quarter of 2026, E.l.f. reported a 14% year-over-year increase in sales, but gross margin decreased by 1.65 percentage points to 69%, and adjusted EPS fell from $0.77 to $0.68 [5] - Management's guidance for full-year sales was below analyst expectations, indicating potential challenges ahead [5] Market Position and Future Outlook - E.l.f. has a market capitalization of $5 billion and trades at a price-to-earnings (P/E) ratio of 58, reflecting market confidence but also a premium valuation given its current performance [7][9] - For improvement in 2026, the company needs to enhance its supply chain and potentially localize production to mitigate tariff impacts, alongside benefiting from lower inflation [7] - There is potential for stock price recovery if E.l.f. exceeds expectations, but volatility may persist until market conditions stabilize [10]

Core Insights - The Rhode acquisition is a significant growth catalyst for e.l.f. Beauty Inc. in fiscal 2026, contributing $52 million to net sales in Q2 and setting a record for the largest launch in Sephora North America's history, surpassing the previous record by 2.5 times [1][9] - Management anticipates Rhode will contribute 22 percentage points to net sales growth in the second half of fiscal 2026, enhancing the company's overall revenue trajectory [2] - Rhode is projected to generate $200 million in revenues over the eight months post-acquisition and approximately $300 million on a 12-month annualized basis, reflecting a 40% year-over-year growth rate [3] Expansion and Strategy - The acquisition enhances e.l.f. Beauty's international opportunities, with nearly 20% of Rhode's direct-to-consumer sales coming from outside the U.S. Recent launches in Sephora U.K. and other global markets aim to expand reach [4] - e.l.f. Beauty is investing in brand-building, digital engagement, and retailer partnerships to support Rhode's growth, enhancing visibility across direct-to-consumer and wholesale channels while maintaining long-term margin improvement [5] Financial Performance - e.l.f. Beauty's shares have declined 34.5% over the past six months, contrasting with the industry's growth of 18.1%, while competitors Nu Skin and Coty have seen mixed performance [6] - The forward 12-month price-to-earnings ratio for e.l.f. Beauty is 22.16, lower than the industry average of 28.20, indicating a premium valuation compared to Nu Skin and Coty [8] - The Zacks Consensus Estimate for e.l.f. Beauty's fiscal 2026 earnings indicates a year-over-year decline of 13.6%, with a projected growth of 27.3% for fiscal 2027 [11]

Core Insights - e.l.f. Beauty and Ulta Beauty reported contrasting earnings results, with e.l.f. exceeding earnings expectations but experiencing a significant stock decline, while Ulta continued its streak of earnings beats and maintained stable stock performance [2][6]. e.l.f. Beauty Performance - e.l.f. reported a revenue increase of 14.2% year-over-year, reaching $343.9 million in Q2, but net income plummeted by 84.8% to $3 million [3]. - The company faced an operating loss of $0.7 million despite a gross margin of 69.4%, with selling, general, and administrative expenses soaring to $231 million, severely impacting profitability [3]. - Management's decision to build inventory resulted in a cash burn of $37.9 million, leading to a compressed operating margin of 2.24% [3]. - Executives sold over $24 million in stock prior to the earnings report, which contributed to the stock's decline to the $70s range [3][6]. Ulta Beauty Performance - Ulta achieved $2.9 billion in revenue, surpassing estimates of $2.7 billion, with comparable sales increasing by 6.3% due to higher ticket sizes and transaction volumes [4]. - Net income remained stable at $230.9 million, maintaining a profit margin of 9.93%, while gross margin improved to 40.4% from 39.7% year-over-year [4]. - The company reaffirmed its full-year guidance, projecting approximately $12.3 billion in sales and earnings per share between $25.20 and $25.50 [4]. Comparative Metrics - e.l.f. Beauty's revenue growth was 14.2% year-over-year, while Ulta's was 12.9% [5]. - Profit margins were significantly different, with e.l.f. at 5.91% and Ulta at 9.93% [5]. - Operating margins also reflected a stark contrast, with e.l.f. at 2.24% compared to Ulta's 10.8% [5]. - Valuation metrics showed e.l.f. trading at a P/E ratio of 58.14x, while Ulta traded at 23.1x, indicating a substantial valuation gap despite Ulta's larger revenue base [5][7].

Core Viewpoint - The recent decline of e.l.f. Beauty's share price by nearly 40% is perceived as excessive given the volatility typically surrounding earnings reports [1] Company Analysis - e.l.f. Beauty has faced revenue headwinds in both the domestic US market and other regions [1] - The company operates under NHM Capital, which focuses on global listed equity investments [1] Management Background - NHM Capital is managed by Markus Schmitz, who has 20 years of experience in investment banking with firms such as Goldman Sachs, Morgan Stanley, and Credit Suisse, specializing in Mergers and Acquisitions and Capital Markets [1]

Core Viewpoint - The recent decline of e.l.f. Beauty's share price by nearly 40% is perceived as excessive given the volatility typically surrounding earnings reports [1] Company Analysis - e.l.f. Beauty's share price has historically shown volatility around earnings reports [1] - Current revenue challenges are noted in both the domestic US market and other investment contexts [1] Investment Context - NHM Capital, a family office focused on global listed equity, is mentioned as a relevant player in the investment landscape [1] - NHM Capital is managed by Markus Schmitz, who has extensive experience in investment banking, having worked for 20 years at major firms including Goldman Sachs, Morgan Stanley, and Credit Suisse [1]

Core Insights - The company is focusing on the Solutions Area, which was announced as a key focus in February [1] - The Housing Solutions business is expected to benefit from a decline in new housing starts in Japan, allowing for accelerated nonresidential and overseas expansion [1] Company Developments - The company aims to become a comprehensive building materials manufacturer by offering a wider range of products [1] - Discussions with partners are ongoing to explore nonsequential actions related to the business strategy [2]