E.l.f. Beauty's profits fall 30% as China tariffs weigh on bottom line

The company, which sources 75% of its ducts from China, also declined to vide a full-year revenue guide, citing the "wide range of potential outcomes" related to the new duties

Instead, the company only issued guidance for the first half of the fiscal year

E.l.f. said it is expecting sales growth to be above 9% in the first half of the year and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, margins to be 20%, compared with 23% in the first half of the previous fiscal year."We're operating in a very volatile macro environment, obviously a great deal of uncertainty on tariffs, so until we have greater resolution on what the tariff picture looks , we didn't think it made sense to issue guidance," CEO Tarang Amin told CNBC in an interview. "It's the uncertainty around the tariffs that make things more difficult." The company has already raised prices by $1 to offset tariff costs and is working to expand its outside of the U.S. and diversify its supply chain. "We're under 55% tariffs on goods coming from China, and we've planned against that," Amin said. "So I'm just waiting for that other shoe to drop to see OK, where do they really settle out? I never thought I would see a day that I'm happy to see 55% tariffs, but it's a lot better than 170%, so I think once we have that resolution, we'll be in a better spot."Beyond fits, E.l.f. beat expectations on the top and bottom lines

Here's how the cosmetics company performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:Earnings per : 89 cents adjusted vs. 84 cents expectedRevenue: $354 million vs. $350 million expectedThe company's reported net income for the three-month period that June 30 was $33.3 million, or 58 cents per , compared with $47.6 million, or 81 cents per , a year earlier

Over the past four years, E.l.f.'s sales have consistently grown in the high double digits, but that momentum has started to slow as the beauty category overall cools off ing several years of outsized growth

Amin said growth is expected to imve in the current quarter

He pointed out that the quarter's 9% sales growth is on top of 50% growth in the year-ago period but acknowledged the category at large — and the state of consumer spending — has been soft. "Sometimes people forget just how much we've been growing," Amin said. "The category, the state of the consumer, is still challenged

There's a lot of uncertainty with tariffs, inflation." While the fiscal first quarter was slower than quarters past, Amin said Nielsen data shows the company is still taking market and outperforming the overall category

A key aspect of the company's growth comes from buzzy duct launches, which are often "dupes" of higher-priced prestige ducts

The effect Rhode will have on E.l.f.'s sales, and especially its launch in Sephora, won't be seen in its results until later this year.Don’t miss these insights from CNBC Bank of America says these five stocks have more room to run ahead of earningsThese overbought stocks could take a dip after the market's record gainsGoldman Sachs is getting worried the economyWhat the prediction are saying the big Wall Street events ahead