Good morning. Amid persistent economic headwinds and shifting trade policy, e.l.f. Beauty is finding opportunity in constraint. The company’s focus on affordability continues to win over consumers, even as shoppers grow more selective, according to CFO Mandy Fields.
“We’re still a value to our consumers when people are pulling back and being more choiceful with their spending,” Fields told me. Even after a recent $1 price increase, 75% of e.l.f. Beauty’s products remain priced at $10 or less, she said.
“If a shopper only has $20 to spend, e.l.f. is a great option,” Fields said. “You can still come in, buy a couple of products, and still have money left in your pocketbook. That’s exactly where we want to be for our consumers.”
A longtime favorite among Gen Z, e.l.f. Beauty, a multi-brand beauty company, is also gaining traction with millennials and Gen X as the brand doubles down on value and trend-driven innovation.
Last week, e.l.f. Beauty reported results for the three and six months ended September 30. Quarterly net sales rose 14% to $343.9 million from $301.1 million a year earlier—slightly below analyst expectations.
After choosing not to issue full-year guidance last quarter, the company now forecasts fiscal 2026 revenue between $1.55 billion and $1.57 billion, representing 18%–20% growth. Analysts had expected closer to $1.65 billion. Even so, adjusted earnings of $0.68 per share topped consensus estimates of $0.57.
The company’s category-leading growth has now extended across 27 consecutive quarters, CEO Tarang Amin said in the company’s earnings release.
Tackling tariffs through diversification
One of the biggest challenges ahead: tariffs. The company expects more than $50 million in additional annual costs tied to higher U.S. tariffs in fiscal 2026. According to Fields, e.l.f. Beauty’s weighted average tariff rate has surged to about 60% this year, up from 25% last year. Roughly 75% of e.l.f.’s production is based in China.
To mitigate the impact, Fields said the company is using a mix of price adjustments, supply chain diversification, and international expansion. The recent $1 price increase was one lever, and the company is also aggressively sourcing outside of China and growing sales in markets where tariffs don’t apply, she explained.
Innovation as a constant
Even amid macro pressure, e.l.f. Beauty continues to innovate, Fields said. That pipeline now includes new momentum from the Rhode acquisition. Announced in May, e.l.f. Beauty agreed to acquire Hailey Bieber’s Rhode lifestyle brand for $800 million in cash and stock, plus a potential $200 million earnout tied to performance over the next three years. Rhode is helping fuel the company’s forecast for 18%–20% annual revenue growth—among the strongest in the beauty industry, Fields commented.
There’s also significant white space internationally: only 20% of e.l.f. Beauty’s sales currently come from outside the U.S., compared with roughly 70% for major competitors, she said. The company is building scale in skincare with Naturium, Rhode, and e.l.f. Skin, whose supply chains are primarily based in the U.S., Europe, and South Korea.
Adapting the CFO Playbook
For Fields, leading through volatility comes down to agility. “We choose words of the year here at e.l.f., and the word of the year was flourish,” Fields said. “Just going through this period of time where we’ve had to do so many scenarios, and you get so many things thrown at you, how do you continue to focus on flourishing as a company?”
What she’s learned this year is that no matter what is going on around you—“Continue to keep your eye on growth.” Staying close to digital innovation and working to integrate AI across the enterprise is also top of mind.
Despite tariffs, inflation, and evolving consumer behavior, Fields remains focused on the fundamentals. “We still have a lot of growth ahead of us,” she said. “We still have aspirations to be the No. 1 color cosmetics brand.
Sheryl Estrada
sheryl.estrada@fortune.com
A quick note: The U.S. observes Veterans Day today, and I’d like to thank all who have served, including members of my own family.
Leaderboard
Fortune 500 Power Moves
Brody Merrill was appointed CFO of Mutual of Omaha (No. 299), effective Dec. 1. Merrill recently served as CFO and treasurer for American National Group. With more than 24 years of financial leadership across the insurance, technology and asset management industries, he has experience in capital management, risk oversight and optimizing business performance. Merrill is a U.S. Marine Corps veteran.
Every Friday morning, the weekly Fortune 500 Power Moves column tracks Fortune 500 company C-suite shifts—see the most recent edition.
More notable moves this week:
Steve Fieler was appointed CFO of Waymo, an autonomous ride-hailing company. Fieler brings nearly 30 years of financial experience to Waymo, an Alphabet company. Most recently, he was a key member of Google’s CFO leadership team, where he served as VP of planning, BizOps, investments, and investor relations. He also previously held the role of business finance officer for Google's platforms and ecosystems unit, responsible for products including Android and Chrome. Before his time at Google, Fieler served as CFO at HP.
Michael Nofi was appointed CFO of Edgewise Therapeutics, Inc. (Nasdaq: EWTX), a muscle disease biopharmaceutical company, effective Nov. 10. Nofi joins Edgewise after serving as chief accounting officer (CAO) at SpringWorks Therapeutics, Inc. He will succeed Edgewise CFO, R. Michael Carruthers, who is retiring. Nofi brings over 30 years of leadership experience. Before joining Edgewise, he served as CAO of SpringWorks Therapeutics. Before that, Nofi was CAO and VP of global accounting and corporate FP&A at The Nature's Bounty Co.
Big Deal
Defense contracting topped the list of industries for veteran hires at 13.8%, followed by government and public administration at 10.5%. Information technology (7.1%), health care and social services (6.6%), and retail trade (5.4%) completed the top five. Notably, both retail trade and manufacturing saw year-over-year growth.
Going deeper
"Warren Buffett is ‘going quiet’ after he steps down as Berkshire Hathaway CEO this year. Read his farewell letter to shareholders" is a Fortune report by Sydney Lake.
Lake writes: Legendary investor and Berkshire Hathaway CEO Warren Buffett will retire at year’s end after an epic 60 years in leadership. In a letter published Monday, Buffett said he’ll be “going quiet,” and will no longer write Berkshire’s annual report, nor talk “endlessly” at the annual meeting. But before he leaves, he recounted his life and success, while sharing his wishes for the organization and philanthropic giving. Buffett is placing his trust in his successor Greg Abel, who will lead the $1.2 trillion empire." Read more here.
Overheard
"From a long-term perspective, I think the answer is no. I think we’ve got years, if not decades, ahead of us for growth."
—Microsoft president and vice chair Brad Smith told Fortune in a conversation at Web Summit in Lisbon on Tuesday when asked if AI is a bubble. Smith also discussed Microsoft’s short-term outlook. Read more here.
