Overview
- Shares fell about 19% in extended trading after the company’s first FY26 forecast since May came in below Wall Street expectations.
- Second-quarter net sales rose 14% to $343.9 million versus $366 million expected, while adjusted EPS of $0.68 topped the $0.57 consensus.
- E.l.f. guided to FY26 revenue of $1.55–$1.57 billion, adjusted EPS of $2.80–$2.85, and adjusted net income of $165–$168 million, below last year.
- Management estimates more than $50 million in annual tariff costs; gross margin fell roughly 165 basis points to 69% as a $1 price increase took effect Aug. 1 with no further hikes planned.
- Rhode is slated to add about $200 million to this fiscal year’s sales with a $300 million annualized run rate after a record Sephora North America launch, with products sourced in Italy and South Korea as E.l.f. still manufactures about 75% of its lineup in China.