Why e.l.f. Beauty Stock Was Crushed Today
Shares of cosmetics company e.l.f. Beauty (NYSE: ELF) were crushed on Friday after the company reported financial results for its third quarter of 2025. As of 2:30 p.m. ET today, e.l.f. Beauty stock was down 19%. That was slightly better than the 28% it was down earlier in the day, but it was a painful drop nonetheless.E.l.f. Beauty stock is now down nearly 70% from its all-time high and down over 40% year to date, so allow me to cut to the chase of the problem: Management said that sales were slower than expected in January, motivating it to lower its financial guidance for the upcoming quarter. The cosmetics stock had traded at a high valuation because it was a high-growth opportunity. But with growth now showing signs of weakness, investors are heading for the hills.Unfortunately, this commentary overshadowed strong third-quarter financial results for e.l.f. Beauty. The company's net sales were up 31% year over year to $355 million, which was ahead of expectations. Moreover, its sales guidance for fiscal 2025 was only lowered by about 2%, which hardly seems worthy of a 19% drop for the stock price.Continue reading
Shares of cosmetics company e.l.f. Beauty (NYSE: ELF) were crushed on Friday after the company reported financial results for its third quarter of 2025. As of 2:30 p.m. ET today, e.l.f. Beauty stock was down 19%. That was slightly better than the 28% it was down earlier in the day, but it was a painful drop nonetheless.
E.l.f. Beauty stock is now down nearly 70% from its all-time high and down over 40% year to date, so allow me to cut to the chase of the problem: Management said that sales were slower than expected in January, motivating it to lower its financial guidance for the upcoming quarter. The cosmetics stock had traded at a high valuation because it was a high-growth opportunity. But with growth now showing signs of weakness, investors are heading for the hills.
Unfortunately, this commentary overshadowed strong third-quarter financial results for e.l.f. Beauty. The company's net sales were up 31% year over year to $355 million, which was ahead of expectations. Moreover, its sales guidance for fiscal 2025 was only lowered by about 2%, which hardly seems worthy of a 19% drop for the stock price.
