A post-earnings push, as well as better-than-expected results from larger rival Estee Lauder, could help ELF stock gain back its lost glory.
- e.l.f Beauty had earlier estimated that in 2026 it would record more than $50 million in annual costs, rising from the tariffs that the U.S. has imposed on its global trading partners.
- CFO Mandy Fields noted that it’s been relatively quiet since the Nov. 10 tariff change, so the tariff rate is now 45%.
- e.l.f. Beauty’s stock last traded at $100 in early November, after which it has lost 28% as of the last close.
E.l.f Beauty shares surged over 5% after the bell on Wednesday and are on course for their best day in two months if gains extend into the next session, with retail traders expecting the stock to break the $100 mark again.
The cosmetics maker’s better-than-expected quarterly results help it raise its annual forecasts, driven by strong demand for its lower-priced items, typically priced below $10.
e.l.Beauty has grown into a well-known brand now offering its own products, such as Lip Lacquer and Halo Liquid Filter, moving away from its initial popularity as a company known for selling affordable dupes of Charlotte Tilbury and Dior products.
Tariffs Still A Concern?
e.l.f Beauty had earlier estimated that in 2026 it would record more than $50 million in annual costs rising from the tariffs that the U.S. has imposed on its global trading partners, especially China, which produced nearly 75% of the company’s items.
In the third quarter, the beauty company reported a gross margin of 71%, down about 30 basis points year over year but up 200 basis points sequentially from the second quarter. “The year-over-year decrease was largely driven by tariffs, partially offset by pricing and mix,” CFO Mandy Fields said.
The company raised prices by $1 last year to offset higher tariffs, a move that underscored the impact of tariffs on its efforts to offer its lip gloss and eyeliners below $10.
Fields noted that it’s been relatively quiet since the Nov. 10 tariff change, so the tariff rate is now 45%. “As you know, it had been as high as 170% earlier in the fiscal year, and so we really haven’t had any changes since that point in time. And if it remains at 45%, that becomes a little bit of a tailwind for us as we get into fiscal 2027,” Fields added during a post-earnings call.
Retail Expects e.l.f To Break $100 Mark
A bullish user on Stocktwits said that once Estee Lauder reports a beat on Thursday, ELF stock could break the $100 mark again. The expected stock price implies a 18% upside to the last closing price of $84.63
e.l.f. Beauty’s stock last traded at $100 in early November, after which it has lost 28% as of the last close. At its peak, the shares were trading at $218, last seen in June 2024.
Another user on Stocktwits said that if Estee Lauder reports strong numbers, even $95 is a good level for the company to achieve.
Retail sentiment on ELF stock jumped to ‘extremely bullish’ from ‘neutral’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
Shares of ELF have declined more than 4% in the last 12 months.
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