What happened

Shares of e.l.f Beauty (NYSE:ELF) lost 18% last month, according to data provided by S&P Global Market Intelligence.

The decline sent the stock to a new low, down 24% since shares began trading in late 2016.

ELF Chart

ELF data by YCharts.

So what

The cosmetics specialist's fiscal second-quarter results, released early in the month, left many investors wanting more. In that announcement, the company showed strong sales growth and a healthy expansion in profitability. Revenue gains sped up to a 27% pace from 15%, and gross profit margin jumped to 64% of sales from 57% a year ago. Highlighting those top- and bottom-line improvements, CEO Tarang Amin said the executive team was "pleased with our strong progress."

A woman applies face cream.

Image source: Getty Images.

Detracting from that good news was the fact that expenses ate up a bigger proportion of earnings as the retailer continues to adjust to life as a public company.

Now what

Amin and his executive team still see revenue growing by between 24% and 28% this year to as much as $295 million. Continued investments into building out the brand and the improving the selling infrastructure will keep a lid on earnings growth, though, and so net income should only expand slightly from last year's $18 million.

That profit speed bump shouldn't threaten e.l.f.'s positive long-term trajectory, which today is being characterized by market share gains and healthy pricing in an altogether weak industry.

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool recommends e.l.f. Beauty, Inc. The Motley Fool has a disclosure policy.