E.l.f. Beauty to walk back some tariff price increases amid high gas prices and consumer 'suffering'
E.l.f. Beauty plans to reverse some recent price increases due to declining consumer demand amid rising gas prices. The company has seen a significant response to price reductions, indicating that consumers are sensitive to pricing changes. Despite beating earnings expectations, E.l.f. has issued weaker guidance for fiscal 2027, reflecting ongoing challenges in the market.
- ▪E.l.f. Beauty is walking back some tariff-related price increases after a drop in demand.
- ▪The company tested a $4 price reduction on a product and saw a nearly 40% increase in sales.
- ▪E.l.f. reported a loss of $49.4 million in the last quarter, primarily due to acquisition costs.
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E.l.f. Beauty is planning to walk back some of the tariff-fueled price increases it implemented less than a year ago after the retailer has seen a slide in demand that's ramped up in recent months as consumers contend with higher gas prices."Whenever you take a price increase that's that big, you're going to see unit degradation, but I would say we've seen units drop off a bit more in the last few months as consumers have particularly been suffering with higher costs," CEO Tarang Amin told CNBC in an interview. "So it's one of the reasons why we want to reinforce the value proposition we have." Recently, E.l.f.
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