E.l.f. Beauty CEO Tarang Amin told CNBC’s Jim Cramer on Monday that the company has performed well even as the cosmetics industry goes through a rough patch, stressing the budget-conscious nature of the products.
“The core of our proposition is taking the best of beauty and making it accessible for every eye, lip, face and skin need,” he said. “And that’s really the key to our success is we can take inspiration from our community, the best products of prestige, and introduce them at a fraction of the cost.”
The company’s most recent quarter beat expectations and the beauty retailer said it saw sales grow by 50%. Amin said the company posted 22 consecutive quarters of net sales growth and market share growth. E.l.f. is popular with Gen Z and Gen Alpha consumers and has seen viral success on platforms like TikTok, Roblox and Twitch.
Some beauty companies have reported a slowdown in consumer spending, and Amin said the category is seeing “softness,” down 6%. But he stressed that the company’s focus on affordability lets it continue to gain market share.
Amin also explained the company’s strategy to manage extra costs if the U.S. increases tariffs on goods imported from China, where many of its suppliers are located. He said that production in China has lessened, going from 100% five years ago to under 80% today, and he added that it will continue to decline in the future.
“We faced 25% tariffs on our China goods since 2019,” Amin said. “And the way we mitigated those, with a combination of price increases, FX, supplier concessions. We’ll do the same this time, and the only other big difference is we continue to diversify our supply chains.”
