E.l.f. Beauty’s profits dropped 30% in Q1 due to new Chinese import tariffs. The company reported net income of $33.3 million, down from $47.6 million last year, and declined to provide full-year revenue guidance due to tariff uncertainty. Sales are expected to grow by over 9% in the first half of the fiscal year.

E.l.f. Beauty exceeded Wall Street’s expectations with earnings per share of 89 cents and revenue of $354 million. Net income for the quarter was $33.3 million, down from $47.6 million the previous year. Sales increased by 9% to $354 million, marking a slowdown from previous double-digit growth.

The company’s growth has been slowing as the beauty category cools off, but CEO Tarang Amin expects improvement in the current quarter. Despite challenges like tariffs and inflation, E.l.f. continues to gain market share and outperform the industry. The company’s growth strategy includes product launches inspired by higher-priced brands.

E.l.f. Beauty recently launched a new Vitamin C serum and acquired Hailey Bieber’s beauty brand, Rhode. The acquisition is expected to boost sales, particularly with Rhode products launching in Sephora stores. The impact of these new products on E.l.f.’s sales will be reflected in later financial results.

Read more at CNBC: E.l.f. Beauty (ELF) earnings Q1 2026