By Granth Vanaik
(Reuters) – Elf Beauty raised annual sales and profit forecasts after beating first-quarter expectations on Thursday, as more customers visited stores and websites to buy affordable cosmetics and skincare products.
Beauty company Elf, like its peers in the segment, has maintained post-pandemic demand as low-cost products from its brands such as Naturium, Skin and Cosmetics continue to attract customers, including those on tight budgets due to sticky inflation.
Retailers like Target, which sells Elf products, have also seen sales of beauty products increase in recent months.
“We have seen consumers become more choosy, but they choose Elf,” CEO Tarang Amin told Reuters.
However, Elf’s shares are down about 14% this quarter as investors raised concerns about the possibility of rising tariffs on imports of nearly 80% of finished goods made in China and higher ocean freight costs, among other concerns.
CEO Amin said an increase in tariffs on imports from China if Republican presidential candidate Donald Trump comes to power would mainly impact the company in the 2026 fiscal year.
Earlier this year, Trump had floated the idea of re-imposing tariffs on China if he wins November’s presidential election, saying the rate for such tariffs could top 60%.
“We don’t like a 60% tariff just because we feel it is a tax on American consumers,” Amin said, adding that the impact of the tariffs would be addressed by raising product prices and slowing supply chain operations diversify.
Elf now expects 2025 revenue to be between $1.28 billion and $1.30 billion, compared to previous expectations of $1.23 billion and $1.25 billion.
It now expects annual adjusted earnings per share to be between $3.36 and $3.41, compared to previous projections of $3.20 and $3.25.
Net sales rose 50% to $324.5 million in the quarter ended June 30, beating expectations of approximately $304.7 million. Adjusted earnings of $1.10 per share also beat LSEG expectations of 84 cents.
(Reporting by Granth Vanaik in Bengaluru; Editing by Mohammed Safi Shamsi)