Why e.l.f. Beauty Stock Jumped 32% in June
Yahoo Finance ·
E.l.f. Beauty ( ELF 2.96% ) stock soared 32% in June, according to data provided by S&P Global Market Intelligence . Since it has high exposure to tariffs, it's benefiting from tariff refunds. It also announced a new product line that opens up its addressable market. E.l.f. has disrupted the traditional mass-market cosmetics industry with its faux-luxury products that are eco-friendly and a marketing strategy that's social-media literate. It's growing quickly, and it has already displaced some legacy products as the no. 1 product in several categories. In the 2026 fiscal fourth quarter (ended March 31), sales increased 35% year over year to $449 million. However, Investors have been worried about its high exposure to tariffs , which have been weighing heavily on its margins. The tariff rate in fiscal 2026 was 55%, more than double the previous year. Gross margin increased 1.3 percentage points in the fourth quarter to 73%, but it came from price hikes, which it's had to implement to offset the negative impact of tariffs. However, the company is working on getting a $58.5 million refund. Otherwise, much is going right. The company changed its growth strategy last year when it acquired the luxury brand Rhode, founded by model Hailey Bieber. The cult favorite has been a massive hit, and it adds new growth potential for e.l.f.
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