Growth Has Slowed Dramatically for e.l.f. Beauty. What Should Investors Do With the Stock Now?

Shares of cosmetics company e.l.f. Beauty (NYSE: ELF) have quickly plunged about 26% from recent highs and it's because the growth rate has suddenly come crashing down for this high-growth business.On Aug. 8, e.l.f. Beauty's management actually raised its full-year revenue guidance. Previously, it had expected net sales of $1.23 billion, at most, for its fiscal 2025 (which ends in March 2025). Now it expects net sales of $1.28 billion, at least, which is an improvement. But investors reacted negatively nevertheless because of what this guidance implies: a dramatic drop in its sales growth rate.For fiscal 2025, e.l.f. Beauty's updated guidance implies 25% to 27% top-line year-over-year growth. But consider that first-quarter net sales were up by 50%. This means that the final three quarters of fiscal 2025 are only expected to grow 20% from the same three quarters of fiscal 2024.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool