What Has E.l.f. (ELF) Stock Done For Investors?

Core Viewpoint - E.l.f. Beauty is facing challenges in a tough market environment, but it continues to grow and gain market share despite recent stock performance issues [1][2]. Group 1: Company Performance - E.l.f. Beauty has reported sales growth while much of the cosmetics industry is under pressure, guiding for full-year growth of 18% to 20% in the 2026 fiscal year [4]. - The company remains popular among consumers, being the favorite teen cosmetics brand for the eighth consecutive year and gaining traction across multiple generations [4]. - However, earnings per share (EPS) have significantly decreased from $0.33 to $0.05 in the fiscal second quarter, indicating challenges in maintaining profitability [5]. Group 2: Market Environment - The overall discretionary spending is down, impacting E.l.f.'s organic performance, and the company is heavily affected by tariffs due to 80% of its products being produced in China [2]. - Despite the challenges, the lower-cost nature of E.l.f.'s products may attract customers switching from premium brands [3]. Group 3: Stock Performance - E.l.f. stock has seen a decline of 45% over the past year, but it has outperformed the S&P 500 over longer periods, with total returns of 71% over three years and 216% over five years [8]. - The current price-to-earnings ratio of 50 suggests that the market still sees strong long-term prospects for the company [9].