Why e.l.f. Beauty Stock Jumped 32% in June
E.l.f. Beauty (NYSE: ELF) stock soared 32% in June, according to data provided by S&P Global Market Intelligence. Since it has high exposure to tariffs, it's benefiting from tariff refunds. It also announced a new product line that opens up its addressable market.
E.l.f. has disrupted the traditional mass-market cosmetics industry with its faux-luxury products that are eco-friendly and a marketing strategy that's social-media literate. It's growing quickly, and it has already displaced some legacy products as the no. 1 product in several categories.
In the 2026 fiscal fourth quarter (ended March 31), sales increased 35% year over year to $449 million. However, Investors have been worried about its high exposure to tariffs, which have been weighing heavily on its margins. The tariff rate in fiscal 2026 was 55%, more than double the previous year. Gross margin increased 1.3 percentage points in the fourth quarter to 73%, but it came from price hikes, which it's had to implement to offset the negative impact of tariffs. However, the company is working on getting a $58.5 million refund.
Source Fool.com
