E.l.f. Beauty's boss has warned of price increases if Republican presidential candidate Donald Trump wins the US general election in November.
The CEO of the drugstore brand Tarang Amin said that Trump's planned taxes on goods imported from China into the US would impact e.l.f.'s financial results in 2026.
"Our approach is very similar to what we did in 2019… we faced 25% tariffs, we used a combination of select price increases, help from FX and supplier concessions to be able to address that tariff issue," said Amin on a call to analysts.
"As we look forward, we've heard rumours as high as 60% tariffs, so if we look at how we would solve that additional 35 points of tariff, we feel pretty confident in terms of that same balanced approach."
Nearly 80% of e.l.f.'s beauty products are currently manufactured in China, but Amin said e.l.f. will be lowering the amount of products made in the country next year.
Referring to Trump's proposed duties, the chief executive added: "It's premature right now, nothing has happened from an election standpoint, we don't know what the level of tariffs are, but we've already gone through a number of different scenario planning."
The warning comes after e.l.f. Beauty reported its 22nd quarter of consecutive growth for Q1 fiscal 2025 as it prepares for its biggest year of international expansion to date.
The Californian-led company reported a sales increase of 50% to US$324.5m.
E.l.f. launched into Italy, the Netherlands and opened its first European office in the UK.
The company announced on Thursday that it plans to enter Germany via retail chain Rossmann’s 1,200 doors.
E.l.f. also raised its full year sales outlook to $1.28bn to $1.3bn, from the previous forecast of $1.23bn to $1.25bn.
