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Elf beauty Profit decreased by 30% in the first financial quarter when new tariffs on Chinese imports begin to influence the essence of the cosmetic company.
In the three months ended on June 30, the ELF net income decreased to $ 33.3 million, which is 30% compared to $ 47.6 million a year ago. The company about which source 75% of their products from ChinaHe also refused to provide a full -fledged guide, citing a “wide range of potential results” New duties.
Instead, the company only made recommendations for the first half of the financial year. Elf said he expects sales growth in the first half of the year to be above 9% and adjusted profits to interest, taxes, depreciation and depreciation, or EBITDA, profitability will be 20% compared to 23% in the first half of the previous financial year.
“We are working in a very changing macro -this, obviously a great uncertainty in the tariffs, so until we get a greater solution of what the tariff picture looks, we did not think that it makes sense to give recommendations,” said Tarang Amen CEO in an interview with CNBC. “This is uncertainty around the tariffs that complicate things.”
The company has already raised prices for $ 1 to offset the tariff expenses and is working on expanding its business under the US and diversification of its supply chain.
“We are less than 55% of the tariffs for goods coming from China and we planned against it,” Amin said. “So, I’m just waiting for other shoes to drop to see normally, where did they really settle?
In addition to profits, the elf beat expectations at the top and bottom line.
Here’s how the cosmetics company made compared to what Wall -Rate was waiting for LSEG analyst survey:
- Profit per share: 89 cents adjusted against 84 cents expected
- Income: 354 million dollars against $ 350 million expected
The company’s net profit has been reported over the three -month period, which ended on June 30, amounted to $ 33.3 million, or $ 58 per share, compared to $ 47.6 million, or 81 cents per share earlier. With the exception of disposable subjects related to stock -based compensation, and other unregulated fees, ELF saw a projected net profit of $ 51.3 million, or 89 cents per share.
Sales have increased to $ 354 million, which is 9% compared to $ 324 million a year earlier. It means The second quarter in a row In which income growth has slowed down to a single figure, a model that the company has not seen since 2020.
Over the past four years, Elf sales have invariably grown in high double digits, but this impetus began to slow down when the beauty category is generally cooling after a few years of negative growth.
Amen said the growth is expected to improve in the current quarter. He noted that the sales growth by 9% of the quarter for 50% during the year, but recognized the category as a whole-the state of consumer spending-was soft.
“Sometimes people forget how much we grow,” Amen said. “The category, the consumer’s state, is still challenged. There is great uncertainty with tariffs, inflation.”
While the financial first quarter was slower than the past quarters, Amen said Nielsen Data shows that the company is still taking the market share and exceeds the overall category.
The key aspect of the company’s growth comes from the launch of Buzzy Product, which are often “ass” with a high price of prestigious products. Recently, he launched his vivid vitamin C + E ferulic serum icon in the amount of $ 17, which was allegedly inspired by a similar product from Skinceuticals, which is sold for $ 185.
It also released a new sunscreen and just closed when purchasing Beauty Beauty Beauty Bieber RodaStarted in all SEPHORA stores in the US and Canada in September. The effect that the genus will be on the sale of Elf, and especially its launch in SEPHORA, will not be noticed in its results by the end of this year.
