Let’s check out the top movers after earnings!
1. $e.l.f. Beauty Inc.(ELF)$ Soared 24% on Blowout Earnings
EPS: $0.78 vs. $0.53 (Beat by 47.2%)
Revenue: $332.6 million vs. $292.6 million (Beat by 13.7%)
Full-year earnings guidance: E.l.f. Beauty did not provide full-year fiscal 2026 guidance due to uncertainty over new U.S. tariffs on Chinese imports, as 75% of its products are made in China. To offset potential cost increases, the company plans a $1 global price hike starting August 1, 2025.
CEO Tarang Amin highlighted e.l.f.'s 21st consecutive quarter of net sales growth and emphasized their expansion into the prestige segment with the $1 billion acquisition of Hailey Bieber’s Rhode brand. Amin stated: “We delivered our strongest year yet, driven by continued market share gains and brand relevance. The acquisition of Rhode will accelerate our strategic vision and expand our reach across categories and consumers.”
2. $Salesforce.com(CRM)$ Fell 3% Despite Earning Beats: AI Doubts and Acquisition Concerns Despite Beat
EPS: $2.56 vs $2.36 (Beat by 8.5%)
Revenue: $9.33 billion vs $9.23 billion (Beat by 1.1%)
Q2 earnings guidance: Salesforce projects FY2025 revenue of $37.7B–$38.0B (8–9% YoY growth), with improved margins 30.5% non-GAAP and 19.9% GAAP and over 20% free cash flow growth, signaling confidence in its cloud and AI expansion strategy.
Marc Benioff, CEO: Emphasized the company's commitment to AI, stating, "With our new Agentforce AI platform, we’re reimagining enterprise software for a new world where humans with autonomous Agents drive customer success together."
Amy Weaver, CFO: Highlighted operational achievements, noting, "We continue to deliver disciplined profitable growth and this quarter, operating margins closed at record highs with GAAP operating margin of 19.1%, up 190 basis points year-over-year, and Non-GAAP operating margin of 33.7%, up 210 basis points year-over-year."
3. $Gap, Inc(GAP)$ Falls 15% Despite Earnings Beat as Tariff Risks and Brand Weakness Weigh on Outlook
EPS: $0.51 vs. $0.44 (Beat by 15.9%)
Revenue: $3.46 billion vs. $3.42 billion (Beat by 1.2%)
Full-year guidance: FY2025 net sales to grow 1–2% and operating income to rise 8–10%, excluding tariffs. If tariffs remain, they may reduce operating income by $100M–$ 150 M. Q2 sales are expected to be flat, with gross margin near 41.8%.
CEO Richard Dickson expressed confidence in the company's brand momentum: "This quarter’s results reflect meaningful progress in our reinvention. Gap and Old Navy drove market share gains and margin expansion, showing our strategy is working. We're confident in our full-year outlook, though we remain cautious on external headwinds."
With regards to tariffs, Dickson added: "We're actively working to mitigate tariff impacts through sourcing shifts and cost controls. We aim to reduce China-sourced goods to under 3% by year-end."
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