April 2024

Market jitters over E.l.f. Beauty have been overblown, in accordance with analysts. The mass beauty company’s shares fell almost 12 percent Wednesday, its biggest one-day fall since October, after Ulta Beauty CEO Dave Kimbell warned that demand for beauty usually had slowed by greater than he had anticipated. Other beauty firms, including the Estée Lauder Cos. and Coty Inc., also saw shares slide by 4 and 6 percent respectively. Ulta, meanwhile, dropped 15 percent. But in a note, Anna Lizzul, a research analyst at Bank of America, described E.l.f.’s share price slide as each “overblown” and “overdone.” She pointed to the indisputable fact that while Kimbell said the slowdown was across segments and costs during a Wednesday appearance at a J.P. Morgan conference...