Particle.news
Download on the App Store

e.l.f. Beauty Beats Q4 Estimates but Issues Softer 2027 Outlook

Planned selective price cuts rely on expected tariff refunds while the company warns a possible $15 million to $20 million oil-cost hit could add pressure to margins.

Overview

  • e.l.f. reported fiscal fourth-quarter revenue of about $449.3 million and adjusted EPS of $0.32, both above analyst estimates, but posted a GAAP net loss driven by a $57.6 million earnout-related charge from the rhode acquisition.
  • For fiscal 2027 the company projected net sales of $1.84 billion to $1.87 billion and adjusted EPS of $3.27 to $3.32, ranges that fall below Wall Street consensus and prompted analysts to trim forecasts.
  • Management plans targeted price rollbacks after a $4 cut to the Halo Glow skin tint lifted sales nearly 40 percent and will test additional lower price points to try to restore unit growth.
  • The company expects roughly $55 million in tariff refunds from prior IEEPA-related duties and says some of that expected money could be reinvested into lower retail prices, but the refund is not yet approved and was excluded from FY2027 guidance.
  • e.l.f. warned that higher oil and transport costs tied to the Iran war could create a $15 million to $20 million headwind not built into current guidance, a risk that, combined with mixed outlook and one-time charges, has left the stock and analysts sensitive to future updates.