Investing.com -- Shares of e.l.f. Beauty (NYSE: NYSE:ELF) tumbled 6.6% as recent Nielson data indicated a sales decline of 2% YoY in the latest reported week, including figures from Amazon (NASDAQ:AMZN). The data also showed a 4% YoY drop when excluding Amazon sales.
The downturn in e.l.f. Beauty's stock follows a report detailing a decrease in sales, contrasting with a previous increase of 7% in the prior week. Despite the weekly decline, the company has seen a 9% growth over the latest rolling four weeks. According to TD Cowena analyst Oliver Chen, external factors such as the shift in the Martin Luther King Jr. holiday and the impact of wildfires may have influenced the recent sales figures.
In a broader perspective, e.l.f. Beauty's sales over a rolling 12-week period have risen by 16%. Chen highlighted that e.l.f. Beauty continues to outperform legacy competitors, gaining approximately 140 basis points in market share in the latest four weeks reported. However, the deceleration in January sales, both including and excluding Amazon, has raised concerns among investors, leading to the stock's decline.
The next cycle of data, which will include sales through January 25th, is anticipated to maintain the average of the last two weeks if two-year stack trends continue, potentially resulting in mid to high teens percentage growth.
While the latest Nielson data presents a momentary snapshot of declining sales, e.l.f. Beauty's overall market share gain among legacy beauty brands and the 16% increase in sales over the past 12 weeks provide a more nuanced view of the company's performance. As investors digest the mixed signals from the recent sales data, e.l.f. Beauty's stock movement reflects the immediate market reaction to the latest week's sales decline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.