Connect with us

Fashion

Elf Beauty slumps as tariff costs, muted consumer spending hit annual forecasts

Published

on

Elf Beauty slumps as tariff costs, muted consumer spending hit annual forecasts


By

Reuters

Published



November 5, 2025

Elf Beauty forecast annual sales and profit below Wall Street estimates on Wednesday, as the cosmetics-maker grapples with higher tariff costs and cautious consumer spending, sending its shares tumbling 26% in extended trading.

Elf Beauty

The company, which provided its fiscal 2026 forecast after pulling it in May, also missed expectations for second quarter sales.

Elf Beauty expects more than $50 million in annual costs from higher U.S. tariffs on imports in fiscal 2026. China accounts for about 75% of the cosmetics-maker’s global production.

Gross margin fell about 165 basis points to 69% in the quarter ended September 30.

Tariffs have sharply reduced Elf’s margins, eMarketer analyst Rachel Wolff said, adding that the company is relying heavily on Rhode as sales for its namesake brand begin to slow. The firm acquired Hailey Bieber-owned Rhode earlier this year.

Elf has been streamlining its supply chain and diversifying operations as part of its tariff mitigation plans amid lower-income shoppers seeking cheaper alternatives and cutting back on non-essential purchases, including makeup and skincare.

The company’s quarterly adjusted earnings per share of 68 cents topped estimates of 57 cents following $1 price increases in August. Elf said it was not planning additional price increases.

The company’s quarterly sales of $343.9 million also missed expectations of $366.4 million.

“From a marketing standpoint, we had some massive launches last year… we feel great about our innovation this year, but it’s not as big as the lip oils were last year,” CEO Tarang Amin said in an interview with Reuters.

Last year, Elf was riding on the popularity of its lip oils, which launched in 2023, but gained traction and social media virality in early 2024, helping its shares touch a record high.

The company expects full-year net sales to be between $1.55 billion and $1.57 billion, compared with analysts’ estimates of $1.65 billion, according to data compiled by LSEG.

It estimated adjusted profit to be in the range of $2.80 to $2.85 per share, below estimates of $3.58 per share.

© Thomson Reuters 2025 All rights reserved.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Fashion

Bangladesh apparel reset: Compliance edge or energy trap?

Published

on

Bangladesh apparel reset: Compliance edge or energy trap?



The pivot is urgent because the old model is under pressure. April **** looked strong: Ready-Made Garment (RMG) exports rose **.** per cent year on year to $*.** billion. But the ten-month picture is weaker. From July-April FY******, apparel exports stood at $**.** billion, down *.** per cent. Knitwear fell *.** per cent to $**.** billion; woven fell *.** per cent to $**.** billion. The rebound is real, but so is the drag underneath.

AWARE is the sharpest EU-facing signal: blockchain-backed product data for Digital Product Passport (DPP) readiness. Open Supply Hub adds the factory-identity layer, pushing production information into an open platform. GIZ brings the longer reform spine, from May **** to February ****, covering energy efficiency, circularity, chemical management, renewable-energy skills and textile-waste transparency.



Source link

Continue Reading

Fashion

UGG boots that last 15 years: Inside Deckers’ strategy

Published

on

UGG boots that last 15 years: Inside Deckers’ strategy



Kenneth Straka, Senior Product Development Manager at Deckers Outdoor Corporation, said that Deckers places strong emphasis on sustainability, noting that founder John Luke often reminded the team that the French word for sustainability is durability. This idea aligned with discussions at the Global Fashion Summit, where the theme centred on “Building Resilient Futures” in the sustainable and circular economy.

Durability has helped UGG become one of the most sought-after boot brands and a key sales driver for Deckers, alongside its sportswear brand Hoka. “One of the things we think about in terms of circularity is making products that last a long time and remain with consumers throughout their lives. We want products that consumers can wear for ** or ** years,” Straka said in an interview with Fibre*Fashion on the sidelines of the Global Fashion Summit in Copenhagen.



Source link

Continue Reading

Fashion

South India cotton yarn sees mixed trend, prices up in Tiruppur

Published

on

South India cotton yarn sees mixed trend, prices up in Tiruppur



In the Tiruppur market, cotton yarn prices increased by ****;** per kg in this week despite sluggish local demand. Prices were quoted higher because of limited supply from spinning mills. A trader from the Tiruppur market told Fibre*Fashion, “Domestic demand remained limited, but spinning mills are not relying solely on the domestic market for cotton yarn sales. They are focusing more on exports, where demand and prices remain attractive. Mills have raised yarn prices following higher ICE cotton prices and the CCI’s increase in auction base prices, although ICE cotton has witnessed a sharp decline over the past two days.”

In Tiruppur, knitting cotton yarn prices were noted as: ** count combed cotton yarn at ****;****** (~$*.***.**) per kg (excluding GST), ** count combed cotton yarn at ****;****** (~$*.***.**) per kg, ** count combed cotton yarn at ****;****** (~$*.***.**) per kg, ** count carded cotton yarn at ****;****** (~$*.***.**) per kg, ** count carded cotton yarn at ****;****** (~$*.***.**) per kg, and ** count carded cotton yarn at ****;****** (~$*.***.**) per kg.



Source link

Continue Reading

Trending