Elf beauties The profits fell 30% in their fiscal first quarter as the new tariffs on Chinese imports begin to influence the lower line of the cosmetic company.
In the three months ended on 30 June, the alph’s net income fell to $ 33.3 million, which was 30% below $ 47.6 million a year ago. Company, about which sources are 75% of its products from ChinaCiting a “wide range of potential results” related to, also refused to provide a full-year revenue guide New duties,
Instead, the company only issued guidance for the first half of the financial year. Elf said that this sales increase is expecting to be above 9% in the first half of the year and the income has been adjusted before the earlier, taxes, depreciation and refinement margin compared to 23% in the first half of the previous financial year.
CEO Taranrang Amin told CNBC in an interview, “We are working in a very unstable macro environment, obviously a big deal of uncertainty on the tariff, so unless we have much resolve to look like a tariff picture, we don’t think that this guidance was not understood,” CEO wave Amin told CNBC in an interview. “It is uncertainty around the tariff that makes things more difficult.”
The company has already increased prices of $ 1 to offset tariff costs and is working to expand its business outside the US and diversify its supply chain.
“We are less than 55% of tariffs on goods coming from China, and we have planned against him,” Amin said. “So I am just waiting for the other shoes to drop to see what they really reside?
Beyond the profits, Elf defeated expectations on the top and lines.
Here is how the cosmetics company compared the Wall Street, based on a survey of analysts by LSEG:
- earnings per share: 89 cents adjusted vs 84 cents expected
- Income: $ 354 million vs. $ 350 million is expected
The company reported for a period of three months ended on 30 June was $ 47.6 million, or $ 33.3 million per share per share, or 58 cents per share. ELF adjusted a net income of $ 51.3 million, except for a one-time items related to stock-based compensation and other non-fee charges, or 89 cents per share.
Sales increased from $ 9% to $ 354 million a year ago to $ 354 million. He marks Second quarter While the revenue growth slowed down in single digits, a pattern that the company has not seen since 2020.
In the last four years, ELF sales have increased in high double digits continuously, but this pace has started slow as the aesthetic category has cool after several years of external development.
Amin said that the increase in the current quarter is expected to improve. He said that 9% of the quarter sales increase is at the top of a 50% increase in the year-old period, but accepted a large-scale category-and consumer spending positions have been-soft.
“Sometimes people forget how much we are growing,” Amin said. “Category, consumer status, is still challenged. Tariff, with inflation is very uncertainty.”
While the fiscal was slower than the first quarter of the past, Amin said that Nielson data suggests that the company is still taking a share in the market and improving the overall category.
A major aspect of the company’s development comes from the launch of the buzz product, which is often the “dups” of high -pricing reputation products. It recently launched its bright icon vitamin C + E Ferulic serum at $ 17, which is believed to have been inspired by a similar product from the skinny product, which retails to $ 185.
It also released a new sunscreen and closed on its acquisition Hailey Bieber’s Beauty Brand RoadWhich will be launched in September in all the Sepora stores in the US and Canada. Impact Road will be on the sale of Elf, and its launch in Sipora, especially in Sipora, will not be seen in its results until the end of this year.
