How Investors Are Reacting To e.l.f. Beauty (ELF) Expanding into ULTA Stores Across Mexico

• e.l.f. Beauty recently announced the official launch of its cosmetics and skincare brands at ULTA Beauty stores across Mexico, expanding its partnership with the retailer and bringing key products to all Mexican locations and ULTA's e-commerce platform.
• This rollout highlights e.l.f. Beauty's ongoing focus on international growth and retailer collaborations amid rising costs and evolving industry challenges.
• We'll explore how e.l.f. Beauty's expanded presence in Mexico may shift its investment narrative given recent guidance and margin pressures.

Rare earth metals are the new gold rush. Find out which 37 stocks are leading the charge.

e.l.f. Beauty Investment Narrative Recap

To be a shareholder in e.l.f. Beauty, you need confidence in the company’s ability to drive sustained growth through innovation, international expansion, and partnerships, while effectively managing margin pressures from rising costs and tariff risks. The new launch in ULTA Beauty stores across Mexico creates an opportunity for increased revenue diversification and brand presence, but it does not significantly impact the immediate risk posed by the company’s high exposure to U.S.-China tariffs, which continue to weigh on gross margins and short-term profitability.

Of the recent announcements, the company’s revised fiscal 2026 guidance stands out most in relation to this news. While the Mexico rollout aligns with management’s target of 18% to 20% annual net sales growth, the guidance and recent earnings reveal a challenging balance between expanding sales and protecting margins amid heightened cost pressure. Investors may find the updated guidance particularly relevant in evaluating whether international gains can offset ongoing headwinds.

However, despite strong top-line momentum, it’s important not to overlook how sudden changes in tariff rates could complicate the path to sustainable earnings growth…

Read the full narrative on e.l.f. Beauty (it's free!)

e.l.f. Beauty's outlook forecasts $2.3 billion in revenue and $294.5 million in earnings by 2028. This implies annual revenue growth of 19.1% and an increase in earnings of $196.7 million from current earnings of $97.8 million.

Uncover how e.l.f. Beauty's forecasts yield a $152.93 fair value, a 106% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s 12 fair value estimates for e.l.f. Beauty range from US$96.94 to US$155.45 per share. With meaningful tariff exposure remaining the biggest risk, it’s crucial to weigh how each viewpoint reflects confidence in the company’s international expansion and cost controls.

Explore 12 other fair value estimates on e.l.f. Beauty - why the stock might be worth just $96.94!

Build Your Own e.l.f. Beauty Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your e.l.f. Beauty research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free e.l.f. Beauty research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate e.l.f. Beauty's overall financial health at a glance.

Seeking Other Investments?

Opportunities like this don't last. These are today's most promising picks. Check them out now:

• This technology could replace computers: discover 27 stocks that are working to make quantum computing a reality.
• These 15 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com