Overview

• First-quarter net sales rose 9% to $353 million while net income declined 30% to $33.3 million as new U.S. tariffs on Chinese imports squeezed margins.
• The company implemented a $1 across-the-board price increase in May to help offset higher import duties.
• Production sourced from China has been reduced to under 75%, with manufacturing shifted to other regions to mitigate tariff risks.
• After finalizing its $1 billion acquisition of Hailey Bieber’s Rhode brand in May, E.l.f. plans to roll out Rhode in U.S. and Canadian Sephora stores in September.
• Later this year, E.l.f. will enter Sephora outlets in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE and will debut in Poland to diversify its revenue base.