e.l.f. Beauty Reports 9% Q1 Sales Growth Amid Tariff Pressure

THE WHAT? e.l.f. Beauty reported a 9% year-on-year increase in net sales for Q1 FY2026, with gains across retail and e-commerce channels.

THE DETAILS Net sales reached US$353.7 million, while adjusted EBITDA rose 12% to US$87.1 million, or 25% of net sales. Gross margin declined 215 basis points to 69%, primarily due to tariffs. Adjusted EPS was US$0.89; GAAP EPS was US$0.58. SG&A expenses increased to US$195.8 million, driven by higher marketing, visual merchandising, and digital costs, partially offset by reduced compensation and operations spending.

THE WHY? The results reflect sustained top-line momentum driven by strong consumer engagement and channel execution, though rising tariff costs and increased brand investment continue to pressure margins.

Source: businesswire