E.l.f. Beauty’s Chairman and CEO, Tarang Amin, has revealed plans to ‘reinvest’ an estimated US$58.5m in one-time tariff refunds during the company’s Q4 FY 2026 earnings presentation.
The company, which owns e.l.f. Cosmetics, e.l.f. Skin, Naturium, Well People and Hailey Bieber’s beauty brand Rhode, shared that it is expecting a significant refund.
It follows e.l.f. Beauty being named among the companies suing the US Government, following a Supreme Court ruling that US President Donald Trump had incorrectly used the International Emergency Economic Powers Act (IEEPA) to levy double-digit tariffs.
Amin shared during the presentation call: “While tariff refunds are not part of our outlook, we absolutely expect refunds from tariffs.
“I think it was about $58.5m that we are expecting.”
The company looks to use this refund to further boost the business, as Amin added: “Our plan on those one-time tariff refunds is really to go back and invest in value and accelerate unit growth.
“Those are the two areas we are particularly focused on, and we feel really good between the innovation we have coming as well as plans we have on both value and what we can do against units to be able to continue to accelerate the business.”
It was revealed during the call that tariffs were at 55% for e.l.f. Beauty last year, with the beauty brand builder assuming a 35% tariff for this year.
Last year, the brand announced a $1 price increase across its products due to the increased tariffs – something the brand now looks to pull back on following the success of a recent pricing readjustment for e.l.f. Cosmetics’ Halo Glow Skin Tint.
“We have already started looking at various price adjustments,” said Amin on the call.
“The experiment we did with our Halo Glow Skin Tint, taking it from $18 to $14, we saw almost a 40% unit lift.
“We are looking at other [product] families – we have not disclosed which families we are looking at – but over the next few weeks, you will see us do some pricing actions on various families, again after driving greater unit growth on those families as we take a look.
“Our overall pricing strategy stays consistent – every day great value.”
A closer look at e.l.f. Beauty’s financial update
E.l.f. Beauty has surpassed Wall Street predictions on both the top and bottom lines for Q4.
Net sales for the three months ending 31 March increased by 35% to $449.3m – up more than $26m from Wall Street’s prediction of $423m.
Q4 of 2026 marks the 29th quarter of net sales growth for the business, with a 25% increase in net sales and 13% increase in adjusted EBITDA.
Of the company’s five beauty brands, Rhode, Naturium and e.l.f. Skin all achieved more than $200m in retail sales for the financial year 2026, with its primary own-brand e.l.f. Cosmetics hitting more than $900m.
Rhode, founded by Bieber in 2022, has again been a key driver for success for the business after being acquired by e.l.f. Beauty in a $1bn deal in 2025.
The brand contributed $113m in net sales for Q4 2026 and $500m in global retail sales for the full year 2026.
This was driven by global expansion as Rhode achieved a record-breaking launch in the UK, as well as marking Australian retailer Mecca’s biggest launch in history.
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