Elf Beauty shares dip as tariff costs hit profit outlook

e.l.f. Beauty

07/08/2025 09:27

** Shares of makeup company Elf Beauty ELF.N fall ~11% to $98.54 in premarket trading

** Co said on Wednesday it expects a smaller core profit margin for the first half of fiscal 2026 due to higher tariff costs, clouding gains from an upbeat first quarter.

** J.P.Morgan trims PT by $2 to $130; maintenance stance at "overweight"

     ** Brokerage expects ELF to sustain strong demand as it continues attracting consumers across income and age groups, with market share gains supported by innovation and repeat purchases

** Despite tariff risks from sourcing 75% of products in China, we see upside for ELF as it mitigates headwinds, benefits from easier comps, and taps into white space growth - JPM

** Elf's quarterly revenue of $353.7 million beat estimates of $350.3 million, as per data compiled by LSEG

** On average, ELF is rated "Buy"; the median PT is $135 - data compiled by LSEG

** As of Wednesday's close, the stock was down ~12% YTD

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))