Beauty Retailer E.l.f. Reverses Tariff Price Hikes as Consumers Tighten Spending
E.l.f. Beauty announced it will reduce prices on some products after raising prices by a dollar last August to offset tariffs. The company paid approximately 58.5 million dollars in tariffs before the Supreme Court struck them down in February 2026, and now expects to recover 55 million dollars in refunds. CEO Tarang Amin cited consumer suffering from higher gas prices and declining unit sales as reasons for the pricing reversal. In tests, cutting the Halo Glow Skin Tint from eighteen to fourteen dollars boosted sales by roughly 38 percent. The company expects to use refund money to fund further price reductions. E.l.f. has also shifted 45 percent of manufacturing outside China to reduce tariff exposure. Despite weaker fiscal 2027 guidance, the company beat earnings expectations in its latest quarterly report.
Key facts
- E.l.f. Beauty raised prices by one dollar in August 2025 to offset tariff costs
- The company paid 58.5 million dollars in tariffs before the Supreme Court struck them down in February 2026
- E.l.f. expects to receive 55 million dollars in tariff refunds
- Testing a price reduction from 18 dollars to 14 dollars on Halo Glow Skin Tint resulted in 38 percent sales lift
- Manufacturing outside China increased from 1 percent to 45 percent of production
- Fiscal 2027 guidance of 3.27 to 3.32 dollars EPS fell below analyst expectations of 3.61 dollars
- Consumer demand declined notably in recent months as gas prices spiked
How different outlets framed it
Left-leaning coverage: Progressive outlets could frame this as vindication that tariffs harm ordinary consumers and that the Supreme Court was correct to strike down Trump's tariff authority. The story shows that corporations passed costs to consumers and only reversed course after suffering sales losses, highlighting how tariffs funnel wealth from working families to corporations.
Limits of this briefing
Most coverage comes from centrist financial media outlets rather than explicitly partisan sources. Right-leaning outlets did not prominently cover this story, limiting perspective diversity. The tariff refund is an expectation and has not yet been approved.
Sources
- CNBC: E.l.f. Beauty to walk back some tariff price increases amid high gas prices and consumer 'suffering' Centre
- MSN Money: E.l.f Beauty reversing tariff price increases amid customer 'suffering,' sales drop and $49.4M loss Centre
- Women's Wear Daily (WWD): E.l.f. Beauty Expects Refunds of Around $55 Million for Tariffs, Plans to Roll Back Some Price Increases Centre
- Inc.com: A Top Beauty Brand Just Admitted Its Recent Price Hike Backfired—Here's What It's Doing in Response Centre
- Glossy: E.l.f. Beauty is lowering prices to respond to unit sales decline, offloading Keys Soulcare brand Centre