economy
E.l.f. Beauty to walk back some tariff price increases amid high gas prices and consumer 'suffering'
E.l.f. Beauty raised prices by $1 last August to offset the impact of tariffs. It's now planning to walk back some of that amid a consumer pullback.
TL;DR
- E.l.f. Beauty is planning to reverse some recent price increases due to a noticeable drop in consumer demand.
- CEO Tarang Amin stated that unit sales have decreased more than expected in recent months as consumers face higher costs.
- A test reduction of $4 on an $18 Halo Glow skin tint resulted in a nearly 40% lift in that product's business.
- The company plans to test additional price reductions to boost unit growth and reinforce its value proposition.
- E.l.f. had raised prices by $1 across its entire product line in August to offset tariff impacts.
- The company reported fiscal fourth-quarter earnings that beat analyst expectations for both revenue and profit.
- However, E.l.f. issued fiscal 2027 guidance that was below Wall Street's predictions.
- Sales for the quarter increased by approximately 35% year-over-year.
- The acquisition of Rhode has been a major driver of E.l.f.'s growth, with the brand expanding into new markets.
- E.l.f. anticipates a $55 million tariff refund to help offset the impact of planned price reductions on profitability.