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Elf Beauty shares slump after annual sales forecast comes below estimates
Rhode is projected to add $200 million to E.l.f. Beauty's annual sales and become a key growth driver despite tariff-related margin pressures, CEO Tarang Amin said.
- On Friday, E.l.f. Beauty finalized its $1 billion acquisition of Rhode at the New York Stock Exchange.
- The acquisition aims to support growth, with Rhode expected to contribute about 13% of E.l.f. Beauty's revenue forecast between $1.55 billion and $1.57 billion.
- Rhode's commercial momentum shows in its $300 million annual run rate for E.l.f. and the biggest North America Sephora launch in September, Amin said.
- The quarter showed an earnings hit with E.l.f. Beauty missing revenue estimates at $344 million versus $366 million expected, while net income fell 84% and gross margin declined by 1.65 percentage points.
- CEO Tarang Amin told CNBC Wednesday, "In response to tariffs, we took our prices up $1, that was effective Aug. 1 so you're seeing tariff impact without pricing in this quarter," and expects full-year adjusted EPS guidance of $2.80–$2.85, far below analysts' $3.58 estimate.
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Elf Beauty shares slump after annual sales forecast comes below estimates
Elf Beauty forecast annual sales and profit below Wall Street estimates on Wednesday, as the cosmetics-maker grapples with rising tariff-related costs amid a frugal consumer spending environment, sending shares down 19% in extended trading.
·United Kingdom
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Coverage Details
Total News Sources7
Leaning Left2Leaning Right0Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 40%
C 60%
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