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E.l.f. Beauty Stock Plunges as Cosmetics Retailer Lowers Outlook on Weak January Sales
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E.l.f. Beauty ( ELF ) shares are sinking around 26% in premarket trading, a day after the cosmetics retailer lowered its outlook for its fiscal full year following soft sales in January.
The retailer said it now expects full-year sales of between $1.3 billion and $1.31 billion, below the $1.315 billion to $1.335 billion it had forecast earlier, and undershooting consensus estimates compiled by Visible Alpha of $1.34 billion.
“Given softer than expected trends in January, we are taking a prudent approach and lowering our outlook for the final quarter of our fiscal year,” said Chief Financial Officer Mandy Fields, adding that the new outlook for fiscal 2025 reflected a 27%-28% gain in net sales year-over-year, versus a 28-30% rise before.
The reduced guidance comes as the company, known for its vegan cosmetics, reported third-quarter earnings that undershot estimates by a wide margin. The company posted third-quarter adjusted earnings per share (EPS) of 74 cents that missed projections of 2 cents each, as per Visible Alpha. Revenue of $355.3 million, up 31% year-over-year, was above analysts' estimates, however.
Shares in E.l.f. Beauty have lost almost half their value in the past year through Thursday.
UPDATE—Feb. 7, 2025: This article has been updated to include refreshed share prices and the addition of adjusted EPS numbers.
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