ELF - Why e.l.f. Beauty Stock Was Up 15% Last Month
2024-06-04 13:50:58 ET
Shares of cosmetics company e.l.f. Beauty (NYSE: ELF) were up 15% in May, according to data provided by S&P Global Market Intelligence . The stock had been dropping in 2024 because investors feared a slowdown in consumer spending in the sector. But the company pleasantly surprised them on May 22 with its financial results for its fiscal fourth quarter of 2024.
It was an admittedly uneven reaction from investors. When e.l.f Beauty first reported fourth-quarter results, the stock was actually down in after-hours trading. But when the market opened, the stock surged ahead and carried it to its big gain in May.
This reaction suggests that there were positives and negatives with e.l.f. Beauty's report. On the negative side, management said that it expects around $1.2 billion in net sales in its fiscal 2025 (which started in April). That would represent a solid year-over-year growth rate of about 21%. That said, this represents a significant slowdown from its 77% growth in fiscal 2024.
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Why e.l.f. Beauty Stock Was Up 15% Last Month