What Happened?
Shares of cosmetics company e.l.f. Beauty (NYSE: ELF) jumped 4.9% in the afternoon session after the company's brand, rhode, announced that its skin-focused collection will launch at Sephora online and in physical stores across Europe starting September 30, 2026, according to the company’s press release.
The brand, founded by Hailey Rhode Bieber and owned by e.l.f. Beauty, is set to expand across 19 European countries through Sephora's physical retail network and online channels.
The partnership represents a significant international push for the skin-focused collection, expanding its distribution reach into key global markets. Investors welcomed the retail milestone, viewing the European launch as a catalyst for continued brand awareness and international revenue growth.
After the initial pop, the shares cooled down to $108.67, up 4.5% from the previous close.
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What Is The Market Telling Us
e.l.f. Beauty’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock dropped 32.6% on the news that the company reported mixed third-quarter 2025 results and issued a disappointing financial outlook. While its adjusted earnings per share of $0.68 beat expectations, revenue of $343.9 million fell short of analysts' estimates.
The main concern for investors, however, was the company's forecast for the full year. Management's guidance for revenue of $1.56 billion and adjusted EBITDA of $304 million, at their respective midpoints, came in significantly below Wall Street's projections.
Adding to concerns, the company's operating margin fell to 2.2% from 9.3% in the same quarter last year. The combination of a revenue miss and a weak forecast that implied slowing growth and profitability prompted a negative reaction from investors.
e.l.f. Beauty is up 39.7% since the beginning of the year, but at $108.67 per share, it is still trading 25.9% below its 52-week high of $146.67 from September 2025. Investors who bought $1,000 worth of e.l.f. Beauty’s shares 5 years ago would now be looking at an investment worth $3,511.
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