E.l.f. Beauty Cuts Some Prices After $4 Test Lifts Sales Nearly 40%

1 articles · Updated · CNBC · May 20

A $4 price cut on E.l.f.’s $18 Halo Glow skin tint lifted business by nearly 40%, prompting the company to reverse some tariff-driven increases and test more reductions.
Consumer demand has weakened more sharply in recent months after last August’s $1 price hike across the E.l.f. line, with higher gas costs making shoppers more price sensitive, CEO Tarang Amin said.
Quarterly results still topped Wall Street estimates: adjusted EPS was 32 cents versus 29 cents expected, and revenue reached $449 million versus $423 million, up 35% from a year earlier.
Profitability guidance disappointed even as E.l.f. expects a $55 million tariff refund to cushion margin pressure; fiscal 2027 adjusted EPS is forecast at $3.27 to $3.32, below the $3.61 analysts expected.
Rhode remains the main growth engine after the acquisition, with sales up 80% over the past year and a Sephora launch in 19 European countries planned for this fall.

Is the success of its premium Rhode brand masking weakness in E.l.f.'s core business, forcing it to slash prices?

Can E.l.f.’s low-price model survive its heavy reliance on Chinese manufacturing amid fierce competition and trade risks?