Is e.l.f. Beauty's Gross Margin Poised to Rebound in 2H26?

Impact · against what's priced in

e.l.f. Beauty's outlook is positive due to anticipated gross margin expansion to 71% in 2H26 and demonstrated pricing power. While China-centric sourcing remains a structural risk, the moderate tariff environment and successful price increases provide a clear path to profitability recovery.

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In context

The company expects gross margins to rebound to 71% in 2H26 and has demonstrated pricing power via a $1 portfolio-wide increase that did not hurt demand.

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• guidance▲23%
• china
• ELF
• NUS
• consumer goods
• cosmetics
• gross margin
• profitability
• tariffs
• trade policy