E.l.f. Beauty (ELF) earnings Q1 2026

Introduction to E.l.f. Beauty’s Fiscal First Quarter

E.l.f. Beauty’s profits fell 30% in its fiscal first quarter as new tariffs on Chinese imports begin to affect the cosmetic company’s bottom line. In the three months that ended on 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.

Financial Performance

Instead, the company only issued guidance for the first half of the fiscal year. E.l.f. said it is expecting sales growth to be above 9% in the first half of the year and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, margins to be 20%, compared with 23% in the first half of the previous fiscal year. The company has already raised prices by $1 to offset tariff costs and is working to expand its business outside of the U.S. and diversify its supply chain.

Impact of Tariffs

"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." The company has already planned for 55% tariffs on goods coming from China and is waiting for further resolution on the matter.

Product Launches and Expansion

Beyond profits, E.l.f. beat expectations on the top and bottom lines. The company’s reported net income for the three-month period that ended June 30 was $33.3 million, or 58 cents per share, compared with $47.6 million, or 81 cents per share, a year earlier. Excluding one-time items related to stock-based compensation and other nonrecurring charges, E.l.f. saw adjusted net income of $51.3 million, or 89 cents per share. Sales rose to $354 million, up 9% from $324 million a year earlier.

Comparison to Expectations

Here’s how the cosmetics company performed compared with what Wall Street was anticipating:

• Earnings per share: 89 cents adjusted vs. 84 cents expected
• Revenue: $354 million vs. $350 million expected

Growth and Market Share

Amin said growth is expected to improve in the current quarter. He pointed out that the quarter’s 9% sales growth is on top of 50% growth in the year-ago period but acknowledged the category at large — and the state of consumer spending — has been soft. While the fiscal first quarter was slower than quarters past, Amin said Nielsen data shows the company is still taking market share and outperforming the overall category.

Conclusion

In conclusion, E.l.f. Beauty’s fiscal first quarter was affected by new tariffs on Chinese imports, resulting in a 30% decline in profits. However, the company beat expectations on the top and bottom lines and is working to expand its business outside of the U.S. and diversify its supply chain. With a strong product launch pipeline and a growing market share, E.l.f. Beauty is well-positioned for future growth.

FAQs

Q: What was the main reason for E.l.f. Beauty’s decline in profits?
A: The main reason for E.l.f. Beauty’s decline in profits was the new tariffs on Chinese imports, which affected the company’s bottom line.
Q: How much did E.l.f. Beauty’s net income fall in the fiscal first quarter?
A: E.l.f. Beauty’s net income fell to $33.3 million, down 30% from $47.6 million a year ago.
Q: What is E.l.f. Beauty’s expectation for sales growth in the first half of the fiscal year?
A: E.l.f. Beauty is expecting sales growth to be above 9% in the first half of the year.
Q: How is E.l.f. Beauty working to offset the impact of tariffs?
A: E.l.f. Beauty has already raised prices by $1 to offset tariff costs and is working to expand its business outside of the U.S. and diversify its supply chain.