Shares of e.l.f. Beauty Inc. (NYSE: ELF) tumbled nearly 18.5% on Friday, following the company’s announcement of a weaker-than-expected sales outlook.
The stock, which closed at $88.49 on Thursday, opened significantly lower at $66.50 and hit an intraday low of $64.01 before recovering slightly to $72.08 by midday trading.
Revised Sales Forecast Sends Shockwaves
The cosmetics giant revised its full-year net sales forecast downward, now expecting revenue between $1.3 billion and $1.31 billion, a drop from its previous estimate of $1.32 billion to $1.34 billion.
Additionally, the company adjusted its earnings per share (EPS) projection to a range of $3.27 to $3.32, below earlier guidance of $3.47 to $3.53.
CEO Tarang Amin cited various external factors impacting the business, including consumer distractions caused by events such as the Los Angeles wildfires and uncertainty surrounding the future of TikTok, a crucial platform for e.l.f.’s digital marketing strategy.
Wall Street Reacts to the Slump
The steep stock decline prompted analysts to reevaluate their outlook on e.l.f. Beauty. Some firms downgraded the stock, warning of potential long-term challenges in the mass beauty market.
Analysts also pointed to concerns about potential tariffs on Chinese imports, as a large portion of e.l.f.’s manufacturing is based in China.
Despite the market setback, e.l.f. reported strong third-quarter earnings, with sales surging 31% year-over-year to $355.3 million. However, investor confidence wavered due to the company’s tempered expectations for future growth.
A Road to Recovery?
While the stock took a sharp hit, some analysts remain optimistic about e.l.f.’s long-term potential, citing its strong brand presence, expansion into new markets, and continued innovation in affordable beauty products.
However, the company may need to address macroeconomic headwinds and adapt its marketing strategies to regain momentum.
As the dust settles, investors will closely watch how e.l.f. navigates these challenges and whether the beauty brand can restore confidence on Wall Street in the coming months.
Also Read
- SASSA Confirms May 2026 Grant Payment Dates - April 22, 2026
- SASSA SRD Status Check 2026: Complete Step-by-Step Guide - April 21, 2026
- From Pit to Port: Why End-to-End Corridor Planning Is Redefining Mining Logistics - April 20, 2026
 tumbled nearly 18.5% on Friday, following the company’s announcement of a weaker-than-expected sales outlook.){kind=link}