Cosmetics brand E.l.f. to increase product costs by a dollar
E.l.f. Cosmetics to Increase Prices Due to Tariffs
Beginning August 1, E.l.f. Cosmetics will raise prices on all products by $1, the company announced via Instagram on Friday. The brand, known for its affordably priced beauty products, aims to maintain quality while keeping prices "e.l.f.ordable."
Seventy-five percent of E.l.f.'s product line will remain priced at $10 or under, but the company stresses that retail prices are ultimately at the discretion of retailers. Inflation and tariffs, according to E.l.f., are responsible for the price increase.
"Things are tight" for shoppers, the company acknowledged in response to a customer's praise for its transparency.
Tariffs have been a pressing issue for many retailers and brands, including Walmart. Even after recent temporary tariff rate reductions, the levies continue to be costly for big-box retailers. Walmart CEO Doug McMillon stated earlier this month that the reduced tariffs will still result in higher prices.
E.l.f. used to produce nearly all its products in China but has since reduced its reliance on the country, with 80% of production now sourced elsewhere. The company is keeping a close eye on the evolving tariff situation, indicating a willingness to adjust its pricing strategy if necessary.
Historically, E.l.f. has been cautious with price increases, with this being only the third increase in the company's 21-year history. The brand is committed to maintaining its brand image and quality while adapting to economic conditions.
The company is set to report Q4 earnings on Wednesday.
- The tariffs have influenced E.l.f. Cosmetics' decision to raise product prices, as stated by the company.
- E.l.f. Cosmetics has previously been cautious with price increases, but this August, prices will rise by $1 to maintain quality and affordability.
- Other retailers, such as Walmart, have also been affected by tariffs, resulting in higher prices for consumers, according to Walmart CEO Doug McMillon.
- In response to changing economic conditions and tariffs, E.l.f. Cosmetics has diversified its production sources to minimize reliance on China, with 80% of production now sourced elsewhere.
