E.l.f. Beauty (ELF 0.89%) stock has been through the wringer over the past few years, and it's down a whopping 40% over the past year. That's despite robust growth over that time, and a brand that continues to surge and gain market share.
When the news hit on Wednesday that e.l.f Beauty (ELF 0.42%) was spending up to $1 billion to acquire a beauty company called Rhode, I quickly turned to the most authoritative expert I knew on the subject: my teenage daughter. I asked her if she had ever heard of the brand.
e.l.f. Beauty NYSE: ELF declines to offer guidance for the year, but investors don't care. The uncertainty brought by tariffs was offset by a $1 global price increase and plans to acquire Rhode.
e.l.f. Beauty's recent Rhode acquisition increases debt and risk, especially as net sales growth slowed to just 4% last quarter. The deal may not align with ELF's core low-price segment, raising concerns about product fit and long-term brand synergy. Heavy reliance on China for production and lack of FY26 guidance add significant uncertainty to the outlook.
Shares of e.l.f. are on pace for their highest single-day return since the company went public back in 2016, up approximately 25% as of 2:30 EST trading on May 29.
E.l.f. said in an Instagram post this month that it would raise its prices by $1 starting in August as it tries to manage inflation and tariffs.
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