e.l.f. Beauty reported on May 20, 2026 that net sales for fiscal year 2026, ended March 31, rose 25 percent to $1,636.5 million, capping a fourth quarter in which sales grew 35 percent to $449.3 million. Per Reuters, the company beat quarterly sales and profit estimates, and the fourth quarter marked its 29th consecutive quarter of net sales growth.
The results came with caveats. Per Reuters, the company said it paid $58.5 million in tariffs during the year, warned that the coming fiscal year could be weaker, and flagged a possible hit of up to $20 million tied to the Iran conflict. Shares of budget-focused beauty companies were watched closely after the announcement, since e.l.f. has been the clearest winner of the trade-down trend in cosmetics.
What drove the record year?
Per the company's earnings release, growth came from both retailer and e-commerce channels in the United States and internationally, supported by the rhode brand acquired in 2025 and by continued gains in mass-market color cosmetics. e.l.f. has taken shelf space at major US retailers and repeatedly raised its full-year outlook during the year, including in February 2026 after a 38 percent third-quarter jump.
Why is the outlook cautious if sales are growing?
Tariffs on goods sourced largely from China raised the company's costs by tens of millions of dollars, per Reuters, and management said pricing and sourcing adjustments would take time. The company's guidance for the new fiscal year came in below the growth rates investors had become used to, and geopolitical uncertainty added to the caution. In short, the record year reflected momentum; the forecast reflects costs.
What this changes for your routine
Tariff costs at a budget brand usually surface in one of two ways: small price increases or smaller product sizes, sometimes both. If e.l.f. dupes are staples in your kit, do not be surprised by a dollar or two of drift on new launches. There is no need to stockpile, since dupes multiply quickly and competitors undercut each other. The bigger lesson for beginners is that technique still outranks tools: a $6 blush applied with a light hand beats a $30 one caked on, and steady price pressure across the budget segment makes experimentation cheaper, not riskier.
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