:max_bytes(150000):strip_icc()/GettyImages-22085232341-67fac7f3a7f04eb4935033e7ecd3be56.jpg?w=1920&resize=1920,1267&ssl=1 "Cosmetics Company E.l.f. Plans a Tariff-Driven Price Hike in August")
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key takeaways
- ELF Beauty plans to increase all its prices to $ 1, starting on August 1 due to tariffs, the company said.
- The cosmetic company estimates that the tariff will have an impact of $ 50 million annually as it produces 75% in China.
- Officials said that they believe that many retail partners and consumer would understand the decision.
Cosmetics company Elph Beauty said it plans to charge more for its goods starting on August 1 in response to tariffs.
Officials said that in the current quarter, import taxes will start weighing the company, but the ELF (ELF) would not increase prices by the next quarter as retailers should be alerted 90 days before the price hike. (Companies are still considering the effect that the court’s decision affecting Trump Tariff could affect their businesses. The company did not respond. Investopedia Request for timely comment for publication.)
Retail vendors have responded well to the announcement, CEO Tarang Amin said on his financial fourth quarter earnings conference call, saying that many consumers will tolerate ELF’s decision to increase the price of $ 1 globally on all products starting in August. The company lists companies including Walmart, Amazon and Target among its retail customers.
Amin said on Wednesday, “This is only an increase in the third price that we have taken contrary to many of our rivals in our 21 -year history, which regularly increase the price increase.” “Historically, consumers (A) are capable of accepting $ 1 growth.”
Elf believes that its competitive prices can increase even more, “Amin said,” while increasing our main price offer. CFO Mandy Fields stated that the California-based business is still modeling for some possible drop-off in response to new prices because due to the “unique” economic environment, CFO Mandy Fields said. Dutash Bank analysts on Thursday estimated that the increase could lead to about 13% lift in revenue.
About 75% of ELF is produced in China, where since May 14, exports to the US have been under 30% import tax at the top of 25% tariffs enacted in 2019, Amin said. The company said that taxes would increase the cost of ELF, which would sell about $ 50 million annually.
Officials said that the prices are expected to increase prices, transfer production and to blunt the impact by increasing their business in international markets.
The company’s stock on Thursday made a high jump on Thursday, a day after the fourth quarter announced results, on Thursday, with the expectations and plans to buy a brand installed by Haley Bieber. Pure sales increased by 4% year-on-year to $ 332.6 million, giving it $ 0.78 per share. Nevertheless, shares are 8.4% below so far this year.
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