Will e.l.f. Beauty's (ELF) Athlete Marketing Move Strengthen Its Competitive Edge in Brand Storytelling?

• e.l.f. Beauty recently launched a new episode of its Show Yourse.l.f. film series, featuring professional soccer player Jess Carter to highlight her journey and inspire greater visibility in women's sports.
• This initiative continues e.l.f. Beauty's commitment to purpose-driven storytelling, shining a spotlight on changemakers and expanding the brand’s reach into cultural and social arenas beyond just cosmetics.
• We'll assess how this renewed focus on purpose-driven marketing and athlete collaboration could influence e.l.f. Beauty’s growth outlook and investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

e.l.f. Beauty Investment Narrative Recap

To be a shareholder in e.l.f. Beauty, you need to believe in its ability to drive long-term growth through brand differentiation, innovation, and international expansion, even as the company faces pressure from cost inflation and global supply chain risks. The latest Show Yourse.l.f. campaign with Jess Carter may strengthen brand engagement and cultural relevance, but its direct impact on the near-term catalyst of margin recovery, especially in light of tariff and supply chain headwinds, is likely modest.

Of recent announcements, the Q1 2026 earnings report is most relevant, showing sales growth to US$353.74 million but lower net income year-on-year. Sustained revenue increases, paired with advanced marketing campaigns like the Jess Carter film, could help offset input cost pressures and competition, tying into the ongoing narrative of balancing growth and profitability.

But with that said, keep in mind that ongoing exposure to U.S.-China tariffs, impacting about three quarters of production, is a risk investors should be aware of...

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

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

Uncover how e.l.f. Beauty's forecasts yield a $142.79 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 22 fair value estimates for e.l.f. Beauty, ranging from US$96.94 to US$251.03. While many see upside, the company’s substantial supply chain exposure to China keeps the conversation focused on potential cost and margin swings, see how your outlook compares.

Explore 22 other fair value estimates on e.l.f. Beauty - why the stock might be worth 31% less than the current price!

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 2 key rewards and 1 important warning sign 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.

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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.

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