E.l.f. Beauty Plummets 9.5% as Tariff Uncertainty Propels Stock to 142nd in Turnover Amid 94.47% Surge in Volume

On August 7, 2025, e.l.f. Beauty (ELF) traded with a 9.48% decline, marking a significant drop in a session with $0.74 billion in turnover—a 94.47% rise from the previous day. The stock ranked 142nd in trading volume nationwide. The move followed the company’s decision to withhold full-year financial guidance amid uncertainty surrounding U.S.-China trade dynamics. CFO Mandy Fields cited the volatility in tariff policies as a key factor, noting that 75% of e.l.f.’s products are manufactured in China and face a 55% import tax upon entering the U.S. This rate, though reduced from 170% earlier in the year, still threatens to add $50 million annually to the company’s cost of goods sold if unchanged.

Fields emphasized efforts to mitigate these costs through international expansion and supply chain optimization. Despite a 9% year-over-year sales increase in the first half of fiscal 2026, the company paused its long-term forecast, awaiting clarity on trade policy developments before August 12. The CFO also highlighted consumer sensitivity to pricing adjustments, including a recent $1 price hike, and noted ongoing efforts to balance affordability with margin pressures. With tariffs and geopolitical risks remaining unresolved, e.l.f. Beauty’s strategic focus on global diversification and cost efficiency will likely shape its near-term outlook.

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