Cosmetics firm E.l.f. Beauty reports 100% net income growth after receiving $50 million in tariff refunds from the U.S. government.
E.l.f. Beauty’s net income surged nearly 100% in its fiscal first quarter, driven by a $50 million tariff refund from the federal government. The refund, plus interest, boosted gross margins by 14 percentage points year-over-year, the company said.
Revenue reached $479 million, topping Wall Street estimates of $430 million, while adjusted earnings per share hit $1.75, more than double the 71 cents expected. Net income rose to $66.6 million, or $1.12 per share, from $33.3 million a year earlier.
CEO Tarang Amin stated the company will reinvest the refund into pricing and marketing to strengthen its brand portfolio. The profit boost is expected to be a one-time event, with $8 million in additional refunds still pending.