In its first-quarter earnings shared on Wednesday, E.l.f Beauty reported a 9 percent increase in net sales to $353 million, driven by strengths in its retail and e-commerce channels. Gross margin contracted around 2 percent to 69 percent, which was attributed to the impact of tariffs.
According to chief executive Tarang Amin, a slate of new launches, including a $17 Vitamin C serum, a $9 lip balm and a $18 mineral SPF had all been successful in lifting E.l.f Beauty’s overall sales. Additionally, skincare line Naturium, which it acquired in 2023, continued to grow.
“Given all the cost pressures everyone’s facing, we’re going to wait to issue full-year guidance until we know what the actual tariff resolution is,” chief executive Tarang Amin told The Business of Beauty, adding that the company has gained another 2 percent of market share.
In May, all of its brands, including Keys Soulcare and Naturium, communicated via their respective social media channels a $1 price increase.
Amin said the price increases do not fully cover the impact of tariffs, but that the company is committed to keeping prices low.
Amin said E.l.f will enter Sephora stores in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates later this year; it will also launch in Poland, moves that will buffer it from the instability in the US. Naturium is also set to expand in Australia via Sephora; Rhode’s upcoming debut in Sephora in the US, Canada and UK is widely anticipated.
Amin said while the company’s value proposition — its core brand, E.l.f Cosmetics has many of its products priced under $10 — keeps uptake high, softness in consumer confidence could weigh on further growth.
“The uncertainty around tariffs and inflation is certainly impacting the [cosmetics] category,” said Amin, noting that its focus on marketing and brand awareness help it continue to gain market share.
“I feel very bullish, but like every consumer category, there is fear,” he said.
Sign up to The Business of Beauty newsletter, your complimentary, must-read source for the day’s most important beauty and wellness news and analysis.
Learn more:
E.l.f. Beauty Acquires Hailey Bieber’s Rhode Skin for $1 Billion
In an interview with The Business of Beauty, E.l.f. chairman and chief executive Tarang Amin said the two brands recognised the “power” of joining forces.