e.l.f. Beauty redirects $50 million tariff refund into aggressive growth plan

e.l.f. Beauty announced a 36% increase in first-quarter fiscal 2027 sales, reaching $479.4 million and delivering adjusted earnings of $1.75 per share, well above analyst expectations. The results were buoyed by an unexpected $50 million tariff refund, plus interest, after the Supreme Court struck down duties previously paid by the company.

Rather than retain the windfall, CEO Tarang Amin pledged to invest nearly all of it in deeper price cuts and broader marketing to sharpen the brand’s value proposition. Even without the refund, margins would have risen about 3.5 percentage points thanks to prior pricing actions and a softer tariff environment. The company also lifted its full-year revenue guidance to $1.94-$1.97 billion and is expanding internationally through Sephora in Europe, Boots in the U.K., and a new entry into Brazil, while integrating the premium skincare label Rhode, acquired last year.