E.l.f. Beauty CEO Tarang Amin discusses the company's 'softer than expected' sales trends in January, attributing the decline to an industry-wide 'consumer hangover' and slower performance of some new products. Amin remains optimistic about the business's long-term prospects, highlighting E.l.f.'s ability to navigate challenges like tariffs and consumer spending concerns.
E.l.f. Beauty CEO Tarang Amin told CNBC's Jim Cramer why the company saw lighter business in January, citing declines across the industry and saying some new products have been off to a slower start. "I remain bullish on the business," he said.
"But our approach is always, we have a high degree of transparency. If we see something, we pass it through."why the company saw lighter business in January, citing declines across the industry and saying some new products have been off to a slower start. "I remain bullish on the business," he said."But our approach is always, we have a high degree of transparency. If we see something, we pass it through."its full-year guidance after"softer than expected" sales trends in January – a shift in tone for the company that has otherwise escaped the business woes felt by many of its peers. The stock tanked more than 24% in extended trading. Amin said the industry broadly can see a"consumer hangover" after a highly-promotional holiday season. He also said E.l.f.'s"social commentary" was down by almost 20% during January. He attributed some of that change to current events that might have discouraged users from posting about products, including the wildfires in Los Angeles and turmoil on TikTok due to the potential ban. He said he expects these factors to normalize over time. In general, Amin continued, E.l.f. feels satisfied with its marketing efforts, saying they have always been able to"engage and entertain our community." He added that the company debated spending a bit more on marketing because it's effective, but ultimately decided to hold off for now as consumers continue to worry about inflation and the economy.Amin also addressed President Donald Trump's tariff hikes. So far, Trump has increased taxes on goods from China by 10%, which could lead many consumer companies that manufacture abroad to raise prices. According to Amin, E.l.f. has"an incredible price umbrella" and managed to adjusted to tariffs in the past, saying the company has paid 25% import taxes since 2019. "This time around, it's just an additional ten points right now," He said."We could use that same balanced plan, plus we have greater supplier diversification and a much bigger international business. So, I feel confident that we can maintain our extraordinary value and address the tariff issue."
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e.l.f. Beauty CEO Says January Sales Were 'Softer Than Expected' Amidst Industry Declinese.l.f. Beauty CEO Tarang Amin discussed the company's January sales performance on CNBC, attributing the 'softer than expected' trend to industry-wide declines and the slower start of some new products. While acknowledging the challenges, Amin expressed optimism about the business's long-term prospects and highlighted the company's commitment to transparency. He also addressed factors contributing to the slowdown, including a potential 'consumer hangover' after the holiday season and decreased social media engagement. Amin further discussed E.l.f.'s strategy for navigating ongoing tariff increases and emphasized the company's commitment to maintaining its value proposition for consumers.
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E.l.f. Beauty CEO Amin on Softer January Sales and TariffsE.l.f. Beauty CEO Tarang Amin discusses the reasons behind the company's slower-than-expected January sales, including industry-wide declines and the impact of current events. He also addresses President Trump's tariff hikes and expresses confidence in E.l.f.'s ability to manage these challenges while maintaining its value proposition.
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