The cosmetics retailer will reverse some tariff-driven price hikes after sales volumes fell sharply amid rising consumer costs.
E.l.f. Beauty will roll back select price increases implemented last year after demand weakened, particularly in recent months as inflation squeezed consumers. The company raised prices by $1 across its product line in August but now plans reductions on certain items to boost unit sales.
CEO Tarang Amin cited a 40% sales lift after testing a $4 cut on its $18 Halo Glow skin tint, signaling heightened price sensitivity. The move follows softer-than-expected unit volumes despite strong fiscal fourth-quarter earnings that beat Wall Street estimates.
The company will test further price reductions to reinforce its value proposition as consumers face higher living costs, including elevated gas prices.