Why e.l.f. Beauty Stock Jumped 12% in July

E.l.f. Beauty (NYSE: ELF) stock rose 12% in July, according to data provided by S&P Global Market Intelligence. The mass cosmetics giant is still enjoying renewed market confidence as it laps last year's negative tariff impact and continues to demonstrate strength.

A social mission in makeup

E.l.f. has defined itself by its social mission and social media presence as well as its low prices. It stands out from the traditional leaders in mass cosmetics, and it continues to grow at a rapid pace as the model resonates with shoppers of all ages.

It faced a major challenge last year when higher tariffs were imposed on goods produced in China, and it raised some of its prices to counteract the increases. That led to an expanded gross margin in the 2026 fiscal fourth quarter (ended March 31) to 73% despite some continual tariff impact.

E.l.f. is also facing its challenges head-on by expanding. It made a major move last year when it acquired model Hailey Bieber's Rhode cosmetics, its first foray into luxury cosmetics. The line has been massively popular, and it was cosmetic retailer Sephora's largest-ever launch in the U.K. It's already generating for $113 million for e.l.f., and it has a long growth runway; it has only 20% international penetration but 74% international social followers.

The company also recently announced the launch of a hair care line, on top of its cosmetics and skin care lines. 77% of e.l.f. users have said they were interested in hair care, and management has a "Zero Distance commitment from insight to action." There's been plenty of positive feedback, including 96% positive sentiment on social media about the piloted products, and this is another lever it's pulling to generate higher revenue.

A resilient growth model

Sales increased 35% year over year in the fourth quarter. That's a fantastic showing when the industry is under pressure. While it may benefit from some luxury consumers switching down, it can likely grow even faster in a more relaxed economic environment, when shoppers spend more freely.

The market has been volatile recently, moving up and down based on the war with Iran, oil prices, and news about interest rates. Companies that demonstrate resilience are winners all the time, and even more so at times like these.

E.l.f. has a massive fan base, low-priced products, and many growth opportunities, and it could be a great long-term stock. Pay attention to the first-quarter report later today.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool recommends e.l.f. Beauty. The Motley Fool has a disclosure policy.