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E.l.f. Beauty Raises Fiscal 2027 Guidance After Tariff Refunds Boost Margins

Management will reinvest roughly $50 million in tariff refunds into targeted pricing, increased marketing, international retail rollouts

Overview

  • The company reported quarter results on Wednesday showing net sales rose 36% to $479.4 million and first-quarter adjusted EPS of $1.75 topped expectations.
  • E.l.f. said it received about $50 million in tariff refunds in the quarter, which the firm said accounted for roughly 1,050 basis points of a 1,400-basis-point gross-margin gain.
  • Using that momentum, E.l.f. raised its fiscal 2027 net sales outlook to about $1.94 billion–$1.97 billion and lifted its annual adjusted EPS forecast to $3.50–$3.55.
  • Management plans to channel the refund proceeds into targeted price cuts and more marketing while expanding product lines including a new haircare launch and scaling Rhode and Naturium.
  • The company is accelerating international rollout through Sephora partnerships, including Rhode in 19 European countries and the Elf brand in Brazil, positioning value pricing to win budget-conscious shoppers.