THE WHAT? e.l.f. Beauty has forecast weaker-than-expected annual sales and profit for fiscal 2027, while warning that rising oil prices linked to the Iran conflict could create a US$15 million to US$20 million financial impact.

THE DETAILS  The cosmetics company said it expects fiscal 2027 net sales of between US$1.84 billion and US$1.87 billion, with adjusted earnings per share forecast at US$3.27 to US$3.32 — both below analyst expectations. e.l.f. Beauty said escalating oil prices tied to the Iran war are expected to increase operational costs, although the company believes cost-saving measures and tariff refunds could help offset some of the pressure. CFO Mandy Fields said the company paid around US$58.5 million in tariffs and is seeking refunds after previous US import tariffs impacting Chinese goods were struck down by the Supreme Court. Around 75% of e.l.f.’s production is sourced from China. Despite the cautious outlook, the company reported strong fourth-quarter results, with sales rising 35% to US$449.3 million and adjusted EPS reaching 32 cents, both ahead of market expectations. Shares rose around 6% in extended trading following the announcement.

THE WHY? The update highlights how geopolitical tensions and supply chain exposure continue to impact beauty companies reliant on global manufacturing, even as value-focused brands maintain strong consumer demand amid economic uncertainty.

Source: Reuters

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