E.l.f. Beauty’s
profits fell 30% in its fiscal first quarter as new tariffs on Chinese imports begin to impact the cosmetic company’s bottom line.
In the three months ended June 30, E.l.f.’s net income fell to $33.3 million, down 30% from $47.6 million a year ago. The company, which sources about 75% of its products from China, also declined to provide a full-year revenue guide, citing the “wide range of potential outcomes” related to the new duties.
Instead, the company only issued guidance for the first half of the fiscal year. E.l.f. said it’s expecting sales growth to be above 9% in the first half of the year and adjusted earnings before interest, taxes, depreciation, and amortization margins to be 20%, compared with 23% in the first half of the previous fiscal year.
“We’re operating in a very volatile macro environment, obviously a great deal of uncertainty on tariffs, so until we have greater resolution on what the tariff picture looks like, we didn’t think it made sense to issue guidance,” CEO Tarang Amin told CNBC in an interview. “It’s the uncertainty around the tariffs that make things more difficult.”
