ELF Stock Rises After Hours On Q4 Earnings Beat And Price Cut Plans: Retail Terms It ‘Overwhelmingly Positive’

• To address pricing sensitivity, the company plans to roll back select tariff-driven price increases. 
• The company reportedly expects a $55 million tariff refund. 
• On mergers and acquisitions, the CEO also reportedly indicated that while organic growth remains the top priority, the company continues to attract interest from top beauty founders.

e.l.f. Beauty Inc. (ELF) shares jumped more than 6% in after-hours trading on Wednesday following the release of stronger-than-expected fourth-quarter results and a $55 million tariff refund, even as the company’s fiscal 2027 outlook fell short of Wall Street forecasts on both sales and earnings owing to a tough market environment.

The cosmetics maker reported fiscal fourth-quarter net sales of $449.3 million, a 35% increase from a year earlier and well above analysts’ consensus estimate of roughly $423 million. Adjusted earnings per share (EPS) came in at $0.32, topping the Street’s expectation of $0.29.

The stock’s positive after-hours reaction appeared driven by the robust top-line beat and continued strength across the brand portfolio — particularly Rhode and Naturium — despite the forward guidance coming in below expectations. Analysts had been looking for fiscal 2027 net sales around $1.87 billion and adjusted EPS near $3.61, but e.l.f Beauty guided to sales of $1.835 billion to $1.865 billion and adjusted EPS of $3.27 to $3.32. The Rhode brand, acquired in 2024, continued to be a standout performer, delivering roughly 80% sales growth.

Price Cuts And Tariff Refund

In an interview with CNBC, Chairman and CEO Tarang Amin highlighted ongoing consumer pressure as a key factor in the more cautious outlook. “We’ve seen units drop off a bit more in the last few months as consumers have particularly been suffering with higher costs,” Amin said. He pointed to elevated gas prices and broader cost-of-living strains as contributors to softer unit volumes.

To address pricing sensitivity, the company plans to roll back select tariff-driven price increases. Amin noted that a recent $4 reduction on the $18 Halo Glow skin tint produced nearly a 40% lift in sales. “There’ll be additional items that we will test lower pricing on to really be able to reinforce our value proposition at a time when the consumer is suffering,” he told CNBC.

Amin expressed confidence in the company’s ability to navigate tariffs, citing an expected $55 million refund that should help offset margin pressure from planned price cuts.

On mergers and acquisitions, Amin also reportedly  indicated that while organic growth remains the top priority, the company continues to attract interest from top beauty founders. “Our first priority is realizing the organic growth we have with our existing portfolio. We have a very high bar when it comes to M&A,” he told CNBC. “But the good news is we’re a destination of choice for the strongest founders in the industry… So I’d say M&A is definitely part of our future.”

How Did ELF Retail Traders React?

On Stocktwits, retail sentiment around ELF stock rose from bullish to extremely bullish territory over the past 24 hours, while message volume increased from high to extremely high levels.  

A Stocktwits user that the firm’s Q4 print is ‘impressive’ given the current economic climate.

Yet another termed the Q1 earnings “overwhelmingly positive.”

ELF stock fell 38% over the past 12 months. 

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