E.l.f. Beauty reported stronger-than-expected quarterly earnings, but new tariffs on Chinese imports weighed on profits. The cosmetics company’s sales grew 9%, marking the second quarter in a row with single-digit revenue growth. New China tariffs led to a 30% decline in profits, compared to the same period last year.
E.l.f.’s net income fell to $33.3 million, down from $47.6 million a year ago. The company cited uncertainty around tariffs as the reason for not issuing a full-year revenue guide. Despite this, E.l.f. expects sales growth of 9% in the first half of the year and adjusted earnings before interest, taxes, depreciation, and amortization margins to be 20%.
CEO Tarang Amin attributed the uncertainty around tariffs as a challenge, but noted that the company is taking market share and outperforming the overall category. E.l.f. has already raised prices by $1 to offset tariff costs and is expanding its business outside of the US.
The company’s new acquisition of Hailey Bieber’s beauty brand Rhode will launch in Sephora stores later this year, but its impact on sales won’t be seen until then. E.l.f.’s profits are expected to improve with growth expected for the current quarter, despite challenges in the beauty category and consumer spending uncertainty.
Source: https://www.cnbc.com/2025/08/06/elf-beauty-elf-earnings-q1-2026.html