e.l.f. Beauty (NYS:ELF) announced on the 5th (local time) that its net income nearly doubled in the first quarter of its fiscal year due to a federal tariff refund. The quarter ended June 30 saw revenue reach $479 million, up approximately 36% year-over-year and exceeding the market estimate of $430 million, while net income recorded $66.6 million—roughly 100% higher than the prior-year period. The Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), resulting in e.l.f. Beauty receiving approximately $50 million in tariff refunds and partial interest during the period. This refund contributed to a 14 percentage point increase in gross profit margin.
e.l.f. Beauty Records $479 Million Q1 Revenue and $66.6 Million Net Income
According to CNBC, e.l.f. Beauty's revenue for the three months ended June 30 totaled $479 million (approximately 681.9 billion won), representing a roughly 36% increase from the prior year. The figure surpassed the market estimate of $430 million. Net income reached $66.6 million (approximately 94.8 billion won), marking approximately 100% growth year-over-year, while gross profit margin rose 14 percentage points. Adjusted earnings per share (EPS) came in at $1.75, significantly exceeding the estimate of $0.71.
Supreme Court Tariff Ruling Delivers $50 Million Refund to e.l.f. Beauty
The Supreme Court ruled tariffs imposed under the International Emergency Economic Powers Act (IEEPA) invalid, leading e.l.f. Beauty to receive approximately $50 million (approximately 71.2 billion won) in tariff refunds and partial interest during the quarter. CEO Tarang Amin stated, "We believe the tariffs should not have been imposed in the first place," adding, "We plan to use the refund to enhance price competitiveness and reinvest in expanding marketing across our entire brand portfolio." The company noted that the tariff impact on profitability for the quarter is expected to be one-time.
e.l.f. Beauty Raises Annual Revenue Guidance to $1.94-1.97 Billion
e.l.f. Beauty raised its annual revenue and adjusted EPS outlook following the strong quarterly performance. The company now projects annual revenue of $1.94-1.97 billion (approximately 2.76-2.8 trillion won), exceeding the market estimate of $1.86 billion and the prior guidance of $1.84-1.87 billion. Annual adjusted EPS guidance was raised to $3.50-3.55, surpassing the market estimate of $3.33 and the previous range of $3.27-3.32.
e.l.f. Beauty Stock Closes Down 1.67% at $86.37
In overnight trading on the New York Stock Exchange, e.l.f. Beauty shares closed the regular session down 1.67% at $86.37 per share and declined approximately 3% in after-hours trading.
FAQ
What revenue did e.l.f. Beauty report for the quarter ended June 30?
e.l.f. Beauty reported revenue of $479 million for the three months ended June 30, up approximately 36% year-over-year and exceeding the market estimate of $430 million.
Why did e.l.f. Beauty receive a $50 million refund during the quarter?
The Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), resulting in e.l.f. Beauty receiving approximately $50 million in tariff refunds and partial interest.
How did e.l.f. Beauty adjust its annual revenue guidance?
e.l.f. Beauty raised its annual revenue guidance to $1.94-1.97 billion, up from the prior range of $1.84-1.87 billion and exceeding the market estimate of $1.86 billion.
