Jim Cramer Says "e.l.f.'s Products Are About to Become More Expensive"

e.l.f. Beauty, Inc. (NYSE:ELF) is one of the stocks Jim Cramer commented on. Cramer discussed the stock decline despite reporting good numbers, as he said:

“What the heck just happened to e.l.f. Beauty? I mean, the last time we got results from this low-cost cosmetics and skincare brand and the stock got eviscerated today, down nearly 10%. You know, we’ve long championed this one. It’s been a great growth stock over the last few years, largely because it offers its customers quality merchandise at incredibly affordable prices. Unfortunately, it can charge low prices because it makes most of its goods in China, which means most of e.l.f.’s products are about to become more expensive. So last night, even though e.l.f. delivered a nice top and bottom line beat, management declined to issue a full year forecast because they really have no idea how the tariff situation’s… going to play out. However, the limited guidance they gave did suggest that their margins are going to take a real hit… Maybe that’s why things got, well, just awry.”

e.l.f. Beauty, Inc. (NYSE:ELF) sells cosmetics and skincare products under brands such as e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare.

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Disclosure: None. This article is originally published at Insider Monkey.