US Retail Sales Slide 1.1% in December, Core Sales Down 0.8%
US retail sales plunged 1.1% in December, the steepest monthly drop since June 2023, as consumer worries suppressed holiday spending. Excluding automobiles, core retail sales fell 0.8%, signaling pressure on discretionary categories such as cosmetics where e.l.f. Beauty could face softer demand.
1. December Retail Sales Decline
US retail sales fell 1.1% month-over-month in December, marking the largest drop since June 2023 as households pulled back on holiday purchases. This underperformance stood in contrast to the 0.5% gain economists had forecast and reflected heightened consumer caution.
2. Core Retail Sales Show Softness
When excluding auto dealers, gas stations and building materials, core retail sales—which capture apparel, electronics, and cosmetics—declined 0.8%. This suggests broad weakness across discretionary categories beyond just high-ticket items.
3. Implications for e.l.f. Beauty
As a pure-play cosmetics company, e.l.f. Beauty may feel the effects of reduced discretionary spending on beauty products. Softer foot traffic and online orders during the holiday season could pressure its upcoming quarterly revenue and margin forecasts.