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E.l.f. Beauty Delays Full-Year Guidance After Profit Drop, Hikes Prices

Trade-policy uncertainty over Chinese tariffs is squeezing margins, prompting the company to delay its full-year outlook.

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E.L.F. cosmetic products are seen for sale in a store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo
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Overview

  • First-quarter net sales rose 9 percent to $353.7 million while net income fell 30 percent to $33.3 million under new U.S. import duties on Chinese-made products.
  • The company suspended its fiscal 2026 guidance due to a wide range of potential outcomes tied to ongoing U.S.–China trade negotiations.
  • E.l.f. implemented a $1 across-the-board price increase on August 1 to mitigate the impact of elevated tariffs on its beauty portfolio.
  • On August 5, the $1 billion acquisition of Hailey Bieber’s Rhode brand officially closed, and integration plans were outlined during the earnings call.
  • E.l.f. will enter Sephora stores in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates later this year as part of its international expansion strategy.