In a Thursday interview with CNBC’s Jim Cramer, E.l.f. Beauty CEO Tarang Amin defended his company’s decision to raise its prices by $1 to combat the costs of President Donald Trump’s tariffs, suggesting customers were not put off by the increase.
“We had about 98% positive sentiment from our consumers,” Amin said, suggesting customers appreciated E.l.f’s transparency about 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 investors reacted to the company’s earnings. The budget cosmetics brand posted a top and bottom line beat, but net income fell 30% from last year as new tariffs on imports from China started to weigh on business. The budget cosmetics brand did not share a full-year outlook due to the “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 company could “maintain our extraordinary value and address the tariff issue,” saying E.l.f. has adjusted to tariffs in the past and that it now has a larger international business.
Amin told Cramer that E.l.f. has been working on “optimizing” its supply chain, adding that a few years ago 100% of production was done in China. He said the company is diversifying suppliers less because of tariffs and more to meet “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 said. “So, really, to be able to meet that demand, we’ll continue to diversify,” Amin said.
