By Arriana McLymore and Neil J Kanatt
May 20 (Reuters) – Elf Beauty on Wednesday forecast annual sales and profit below analysts’ expectations, and said surging oil prices tied to the Iran war could have a $15 million to $20 million impact in fiscal 2027.
Still, shares of the cosmetics maker, which beat estimates for fourth-quarter results, rose about 6% in extended trading.
Elf joins other global firms hit by the U.S.-Israeli war with Iran, but said it has not included the expected impact in its forecast.
“We have cost-savings programs that we believe can help offset” the impact, Chief Financial Officer Mandy Fields told Reuters in an interview. She said tariff refunds could also offset those costs.
The company, which relies on China for about 75% of its production, has faced pressure from import tariffs introduced by U.S. President Donald Trump, that were later struck down by the Supreme Court.
Fields said Elf paid about $58.5 million in tariffs and is working to collect the refunds.
The company expects full-year net sales to be between $1.84 billion and $1.87 billion, with the midpoint below analysts’ average estimate of $1.87 billion, according to data compiled by LSEG.
Annual adjusted profit is forecast at $3.27 to $3.32 per share, also below expectations of $3.61.
Elf, which offers about 75% of its products at $10 or less, has benefited from demand among cost-conscious shoppers despite broader macroeconomic uncertainty.
Fields said consumers are continuing to spend on beauty and that the company is not “seeing the trade down effect right now.”
Elf — short for eyes, lips, and face — reported a 35% increase in fourth-quarter sales to $449.3 million, while analysts estimated $423.1 million.
Quarterly adjusted earnings per share came in at 32 cents, beating an estimate of 29 cents.
(Reporting by Neil J Kanatt in Bengaluru and Arriana McLymore in New York; Editing by Shilpi Majumdar)
