Elf Beauty expects smaller profit margins in the first half of fiscal 2026 due to increased tariff costs, causing shares to plummet by 11%. Retailers struggle to plan amidst unpredictable trade policies. Elf Beauty reduces production in China, diversifies supply chain, and raises prices to offset trade-related expenses. Despite challenges, Elf Beauty maintains sales growth with popular products like vegan lip oils and blush tints. Quarterly revenue of $353.7 million exceeds estimates, with adjusted earnings at 89 cents per share, surpassing analysts’ expectations.

Read more at Yahoo Finance: Elf Beauty sees smaller core profit margin in first half of fiscal 2026 on tariff costs