E.l.f. Beauty reported fiscal first-quarter profit nearly doubled after receiving about $50 million in tariff refunds from the federal government, prompting the cosmetics company to raise its full-year sales and earnings guidance.
Net income rose roughly 100% and gross margin expanded 14 percentage points from a year earlier, according to the company’s earnings report released earlier today. Adjusted earnings came in at $1.75 per share on revenue of $479 million, both exceeding analyst estimates.
The company lifted its full-year sales forecast to $1.94 billion to $1.97 billion from $1.84 billion to $1.87 billion. It also raised adjusted earnings outlook to $3.50 to $3.55 per share, up from $3.27 to $3.32 previously.
CEO Tarang Amin said E.l.f. plans to reinvest the tariff refund in pricing reductions and marketing efforts to drive consumer volume. The company also expects to receive approximately $8 million in additional tariff refunds, according to the earnings announcement.
E.l.f. had been anticipating tariff refunds since May 2026, when it disclosed it had paid roughly $58.5 million in duties on imports. The refunds stem from a reversal of Trump-era tariffs that the federal government determined were unlawful under the International Emergency Economic Powers Act. Economists at the Penn Wharton Budget Model estimated that reversing those tariffs could generate up to $175 billion in refunds across all U.S. importers.
The tariff refund windfall arrives as E.l.f. Beauty faces broader industry headwinds. The beauty company had raised prices by roughly $1 per product in 2025 to offset tariff costs, a move that drew criticism from consumers and prompted the company to plan price rollbacks once refunds materialized. With the refund now in hand, E.l.f. is positioning itself to compete on price while reinvesting margins into growth—a strategy other tariff-affected retailers have adopted as refunds begin flowing.
Sources
- Binance News / CNBC — E.l.f. Beauty’s fiscal Q1 profit surge, $50M tariff refund, earnings per share, revenue, and full-year guidance raise
- Supply Chain Dive — E.l.f. Beauty’s $58.5 million tariff refund expectations and reinvestment strategy
- Penn Wharton Budget Model (via multiple outlets) — Estimated $175 billion in total tariff refunds across U.S. importers
