In a Thursday interview with CNBC’s Jim Cramer, E.l.f. Beauty CEO Tarang Amin defended his firm’s choice to lift its costs by $1 to fight the prices of President Donald Trump’s tariffs, suggesting clients weren’t delay by the increase.
“We had about 98% positive sentiment from our consumers,” Amin mentioned, suggesting clients appreciated E.l.f’s transparency in regards to the change. “Even after the price increase, 75% of our portfolio is $10 or less, so still a phenomenal value.”
E.l.f. shares declined 9.48% on Thursday as traders reacted to the corporate’s earnings. The funds cosmetics model posted a prime and backside line beat, however web revenue fell 30% from final yr as new tariffs on imports from China began to weigh on business. The funds cosmetics model didn’t share a full-year outlook as a result of “wide range of potential outcomes related to tariffs.”
E.l.f. sources 75% of its products from China. Back in February, Amin told CNBC his firm may “maintain our extraordinary value and address the tariff issue,” saying E.l.f. has adjusted to tariffs up to now and that it now has a bigger worldwide business.
Amin instructed Cramer that E.l.f. has been working on “optimizing” its provide chain, including that just a few years in the past 100% of manufacturing was completed in China. He mentioned the corporate is diversifying suppliers much less due to tariffs and extra to satisfy “the strong global demand we have for our brands.”
“International was the fastest-growing part of our business this past quarter, or, actually, the last few quarters,” Amin mentioned. “So, really, to be able to meet that demand, we’ll continue to diversify,” Amin mentioned.
