e.l.f.(US:ELF) CNBCยท2025-02-06 21:09Core Viewpoint - E.l.f. Beauty has cut its full-year guidance following a 36% drop in profits and weaker-than-expected sales trends in January, indicating a downturn for the brand despite previously strong performance [1][6]. Financial Performance - The company's net income for the fiscal third quarter ending December 31 was $17.3 million, or 30 cents per share, down from $26.9 million, or 46 cents per share, a year earlier [2]. - Sales increased to $355 million, a 31% rise from $271 million a year prior [3]. - For the full fiscal year, E.l.f. now expects sales between $1.3 billion and $1.31 billion, below the previous estimate of $1.32 billion to $1.34 billion [3]. - Adjusted earnings per share are now projected to be between $3.27 and $3.32, significantly lower than the previous estimate of $3.47 to $3.53 [4]. Market Trends - The overall beauty category has seen a decline, with mass cosmetics down 5% in January, attributed to holiday discounting and reduced social media engagement [7][8]. - E.l.f. acknowledges that while it is still growing and outperforming the overall category, the pace of growth is slowing, and recent product launches have not been as successful as before [9]. Strategic Focus - The company is focusing on using profits to invest in inventory management, infrastructure improvements, and international expansion [10].