**E.l.f. Beauty Stock Declines Amid Mixed Earnings Report**
E.l.f. Beauty (NYSE: ELF) experienced a 13% decline in stock value throughout May, as reported by S&P Global Market Intelligence. The drop came despite the company’s fourth-quarter earnings for fiscal 2026 (ending March 31) showing a 35% year-over-year revenue increase and an EPS of $0.32, surpassing projections of $0.29.
The company reported 29 consecutive quarters of sales growth, aided by successful launches like its Rhode brand, acquired from Hailey Bieber, which marked the largest launch in Sephora’s history. However, profitability has been affected by high tariff rates, averaging 55% in fiscal 2026 and projected to drop to 35% in 2027. With plans to obtain $58.5 million in tariff refunds, E.l.f. aims to manage costs while navigating declining unit sales, prompting price adjustments to boost sales. Despite remaining down 32% for the year, the stock trades at a relatively low multiple of 14 times forward sales, presenting a potential opportunity for long-term investors.
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