3 Beauty Stocks Off to an Ugly Start—Can 1 Stage a Comeback?

Core Viewpoint - The beauty sector is experiencing significant declines in 2025, with Ulta Beauty, Coty, and e.l.f. Beauty all facing steep losses, but Ulta Beauty is positioned for a potential rebound due to its diverse product lineup and strong customer loyalty [12][13]. Ulta Beauty - Ulta Beauty ended 2024 down 11.24% and is currently down 16.05% year-to-date (YTD) [1] - The company reported fiscal Q3 2025 earnings per share (EPS) of $5.14, beating consensus estimates by $0.61, with revenues rising 1.7% year-over-year (YoY) to $2.53 billion [4] - Ulta Beauty issued an upside guidance for fiscal 2025 with EPS expected between $23.20 to $23.75, up from previous forecasts, and revenues projected between $11.1 billion to $11.2 billion [5] - The compound annual growth rate (CAGR) for Ulta Beauty has been 17% since 2010, with skincare being the strongest growth driver at a CAGR of 19.3% [3] Coty - Coty closed 2024 with a 43.96% loss and is down 19.83% YTD [1] - The company reported fiscal Q2 2025 EPS of $0.11, missing consensus estimates by $0.10, with revenues falling 3.3% YoY to $1.67 billion [7] - Coty faced challenges in China and other markets, impacting its sales of color cosmetics, although its Prestige Fragrances portfolio continued to perform well [6][8] e.l.f. Beauty - e.l.f. Beauty has seen a significant decline, with a 41.86% drop YTD as of February 14, 2025, and finished 2024 down 13.02% [1][2] - The company reported fiscal Q3 2025 EPS of $0.74, missing estimates by $0.02, but revenues surged 31.2% YoY to $355.3 million [11] - e.l.f. Beauty lowered its guidance for fiscal 2025 EPS to a range of $3.27 to $3.32, down from earlier estimates, with expected revenues between $1.300 billion to $1.310 billion [12]