e.l.f. Beauty: Still Pretty Good, Actually

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So, Jacobson & Schmitt Advisors – bless their hearts – dropped about $4.8 million on e.l.f. Beauty stock in the last quarter. That’s… a choice. It’s like buying a slightly dented designer handbag. You know it’s good, you’re getting a deal, but you also spend the next week subtly checking for flaws. They snagged 48,504 shares, which, let’s be honest, is a lot of eyeliner.

What’s the Deal?

The filing with the SEC confirms the purchase. Basically, these guys saw e.l.f. and thought, “Yeah, that checks out.” The position, while up in share count, did experience a paper loss of $4.24 million. Which, in the grand scheme of things, is just a rounding error if you’re, you know, an investment firm. It’s like realizing you left a $5 bill in your winter coat – annoying, but not life-altering.

Digging a Little Deeper

This e.l.f. stake now represents 2.42% of Jacobson & Schmitt’s 13F portfolio. Which is…committed. It’s like when you decide to really lean into a hobby. Suddenly, you’re an expert on miniature spoon collecting. Here’s a quick rundown of their other loves:

  • NASDAQ: IUSB: $36.26 million (6.1% of AUM)
  • NYSE: APH: $33.36 million (5.6% of AUM)
  • NASDAQ: AMZN: $29.88 million (5.0% of AUM)
  • NASDAQ: FSV: $22.55 million (3.8% of AUM)
  • NASDAQ: MBB: $21.81 million (3.7% of AUM)

Now, let’s talk about the elephant in the room: the stock price. As of January 20th, e.l.f. was trading at $89.04. Down 25% year-over-year. Ouch. It’s underperforming the S&P 500 by a cool 43.21 percentage points. Which, let’s be real, is just…sad. Like a perfectly good rom-com that nobody saw.

Company Snapshot

Metric Value
Price (as of market close 2026-01-20) $89.04
Market Capitalization $5.31 billion
Revenue (TTM) $1.39 billion
Net Income (TTM) $81.82 million

What e.l.f. Actually Does

  • e.l.f. Beauty is the purveyor of all things face and skin, with brands like e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare. Basically, they’re in the business of making us feel slightly less terrible about our faces.
  • They sell stuff wholesale to retailers (Target, Ulta, you name it) and directly to consumers online. A two-pronged attack on our wallets.
  • They’re global, but mostly focused on the U.S. market. Because, let’s face it, America is obsessed with looking good.

e.l.f. is a leading player in the affordable beauty space. Scalable business model, retail partnerships, direct-to-consumer presence – the whole shebang. They’re all about accessible price points, rapid innovation, and digital engagement. Which is corporate-speak for “we know how to use Instagram.”

So, What Does This Mean for Investors?

Okay, so the stock has underperformed. But here’s the thing: the underlying business is still growing. They just reported their 27th consecutive quarter of net sales growth – revenue up 14% year-over-year. That’s…consistent. Market share is expanding, and management is predicting 18-20% sales growth for fiscal 2026. They’re optimistic. Bless their hearts.

Margins are a little squeezed due to tariffs and higher operating costs, and adjusted EBITDA dipped slightly. But e.l.f. is reinvesting in marketing, innovation, and distribution. Prioritizing share gains over near-term profitability. Which is a fancy way of saying “we’re playing the long game.” Cash on hand nearly doubled year-over-year, and debt levels increased following some strategic moves. They’re flexible. And in debt. Like most of us.

Within the fund’s portfolio, this e.l.f. position is just one piece of the puzzle. It’s not replacing core holdings. It’s an incremental bet on a brand with durable momentum. For patient investors, the disconnect between operating performance and share price is the more interesting signal. Maybe the drawdown is an opportunity. Or maybe it’s just a reminder that the stock market is a chaotic, unpredictable mess. Either way, I’m going to need a face mask.

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2026-01-21 21:03