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On Thursday, an analyst from BofA Securities adjusted the price target for e.l.f.

Beauty (NYSE: ELF ), lowering it to $220.00 from the previous $230.00, while keeping a Buy rating on the stock.



The revision follows e.l.f.

Beauty's fourth fiscal quarter results, which showcased a significant increase in sales, exceeding the analyst's expectations. The beauty company reported a 71% year-over-year growth in sales, which was attributed to a 50% increase in volumes and a 21% improvement in product mix. This performance surpassed the analyst's sales growth estimate of 56%.

The robust sales figures were driven by a 30% expansion in tracked channels for color cosmetics, contrasting with a 3% decline in the overall category, and a notable market share gain of 325 basis points. e.l.

f. Beauty's gross margin for the quarter stood at 71%, marking an improvement of 180 basis points from the previous year. This rise was credited to several factors including favorable foreign exchange rates, price increases in international markets, reduced costs resulting from retailer activity, cost savings initiatives, and a favorable product mix.

However, these positive impacts were slightly offset by adjustments in inventory levels. Despite the strong sales and gross margin performance, the company's selling, general, and administrative expenses (SG&A) accounted for 61% of sales, which was higher than the anticipated 56%. The increase was primarily due to elevated spending on marketing and digital initi.

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