ELF Beauty CEO explains soft sales trends in January

The beauty of the elf CEO Tarang Us told CNBC Jim Kramer The reason the company saw a lighter business in January is that it has declined across the industry, with some new products beginning late.

“I remain bullish about business,” he said. “But our approach is always, we have a high degree of transparency. If we see something, we go through it.”

Thursday evening, the elf Posted You miss small revenue, but you beat the revenue. Budget cosmetic brand cut Year-round guidance after January’s “softer than expected” sales trends – a change in the company’s tone that has escaped the business misfortunes that many peers have otherwise felt. The stock tanked more than 24% in extended transactions.

Amin said the industry can see “consumer hangovers” widely after the highly anticipated holiday season. He also said that the “social commentary” for elves fell nearly 20% in January. He attributes some of the changes to current events that may have discouraged them from posting about products that include the Los Angeles wildfires and the Tiktok disruption. He said he hopes these factors will normalize over time.

In general, Amin continues, saying that elves feel satisfied with their marketing efforts and have always been able to “encourage and entertain our community.” He argued that the company would spend a little more on marketing as it was effective, but added that it ultimately decided to hold it down for now as consumers continue to worry about inflation and the economy.

Amin also worked on a tariff hike for President Donald Trump. So far, Trump has raised taxes on goods from China by 10%, potentially leading many consumer companies manufacturing overseas to raise prices. According to Amin, ELF has a “incredible priced umbrella” that has been able to adapt to tariffs in the past, and since 2019 the company has paid a 25% import tax.

“This time, I only have another 10 points now,” he said. “We can use the same balanced plan, and we have a much larger international business with a diversification of suppliers. So we are confident that we can maintain exceptional value and address tariff issues. .”