e.l.f.(ELF) The Motley Fool·2025-02-14 13:15Group 1: Ulta Beauty - Ulta Beauty has seen its stock decline by 27% over the past year, facing challenges from a shifting economic environment and increased competition [1][3] - In Q3, comparable-store sales increased by only 0.6% year over year, a significant slowdown from the previous year's 4.5% [4] - Despite recent underperformance, Ulta Beauty remains profitable with solid fundamentals and anticipates a robust holiday shopping season, guiding for positive comparable sales and a modestly higher operating margin [5][6] Group 2: e.l.f. Beauty - e.l.f. Beauty has experienced a 55% decline in stock price over the past year but has been successful in democratizing makeup with affordable, professional-grade products [1][8] - The company has maintained an impressive growth record with 24 consecutive quarters averaging over 20% growth, although it faced a slowdown in Q3 of fiscal 2025 with a 31% sales increase compared to an exceptional 85% growth last year [9][10] - e.l.f. Beauty is targeting 27% to 28% revenue growth for full-year 2025, with adjusted EPS around $3.30, reflecting a 4% increase from 2024 [11] - The stock trades at a forward P/E ratio of 22, which is higher than Ulta Beauty's 16, but its stronger growth outlook justifies this premium valuation [12]