e.l.f. Beauty's $1 Price Hike Seen As 'Manageable' Tariff Move: Analyst

Canaccord Genuity analyst Susan Anderson reiterated the Buy rating on e.l.f. Beauty ELF with a price forecast of $105.

On May 23, the firm disclosed via social media its plan to increase prices by $1 starting August 1, attributing the decision to the current tariff environment.

According to Anderson, this development should be viewed positively, as it suggests the company’s tariff impact is ‘manageable’ using its existing strategy while continuing to provide affordable, high-quality products.

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The analyst also pointed out that the firm’s planned price increase is justified because their current average unit retail price of around $6.50 is significantly lower than that of their mass-market peers, who average over $9. It is also even further below prestige brands.

She also observed that the company’s post suggests manufacturer’s suggested retail prices (MSRP) may differ by retailer.

The company’s post mentioned 75% of its U.S. product lineup will continue to be priced below $10, while a comment on the same page indicated that 50% of its products globally remain under the $10 mark.

The analyst noted that e.l.f. products tend to be priced higher in international markets like Europe compared to the U.S.

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However, Anderson also cautioned that despite the near-term optimism, recent tariff-related statements from President Donald Trump have reintroduced a level of uncertainty regarding the broader outcome of the tariff situation.

With President Trump again stoking the flames of a trade war that appeared to be cooling with potential escalation against the European Union and on Apple products, tariff risk may not be in the rearview mirror just yet, she stated.

The company announced that it will hold a webcast to discuss its fourth quarter fiscal 2025 results on Wednesday, May 28, 2025.

Anderson stated that during its earnings, she anticipates the company will provide additional details on its strategy for addressing its manufacturing exposure in China.

The analyst projects the company to report quarterly adjusted EPS of 71 cents, and sales of $327.7 million.

Price Action: ELF shares are trading higher by 8.23% to $90.84 at last check Tuesday.

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