E.l.f. Beauty Cuts Prices 22% on Key Products After Unit Sales Decline

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5.21.2026

Quick Facts

E.l.f. reduced Halo Glow Skin Tint price from $18 to $14, reversing August price increases across all SKUs
Company transferred Keys Soulcare brand back to founder Alicia Keys to focus resources on five core brands
Despite unit volume declines, E.l.f. achieved 25% net sales growth in fiscal 2026 with $449.3 million in Q4 revenue

E.l.f. Beauty cut prices on key products after acknowledging “a more pronounced decline in units” across its portfolio. The company reduced its popular Halo Glow Skin Tint from $18 to $14, a 22% price drop that reverses course from August price increases implemented across all E.l.f. product SKUs.

The pricing strategy aims to “deliver better value and improve unit velocity,” CEO Tarang Amin said. The company faces pressure from higher average item prices that drove $62.2 million in net sales increases but were “partially offset by lower volume impacting sales by $19.4 million.”

E.l.f. also transferred the Keys Soulcare brand back to founder Alicia Keys as part of a strategic refocus. The divestiture “allows our team to better focus on our five brands, all of which grew in fiscal 2026,” according to the company.

The moves come as E.l.f. navigated significant headwinds in fiscal 2026. The company faced “an average tariff rate of approximately 55%, more than double the 25% rate we faced just a year ago.” Full-year gross margin decreased 50 basis points to 71%, primarily driven by higher tariff costs.

Despite volume challenges, E.l.f. delivered strong financial results. Net sales grew 25% and adjusted EBITDA grew 13% in fiscal 2026, marking the company’s seventh consecutive year of net sales and market share growth.

Q4 2026 revenue of $449.3 million exceeded Wall Street estimates by 5.8%. Sales grew at a 41.4% compounded annual growth rate over the last three years.

Amin acknowledged execution challenges with recent product launches. “Our spring 2026 innovation is off to a slower start than we expected, and as a result, we’re not seeing the lift across our core items that spring innovation has historically delivered,” he said.

The company outlined a four-pronged recovery plan focusing on value, innovation, international expansion, and leadership. International sales drove 38% of fiscal 2026 sales, with E.l.f. launching “eight international retail customers across 14 countries.”

E.l.f. provided fiscal 2027 guidance reflecting “an expected 12-14% increase in net sales” compared to fiscal 2026. The company maintains strong market positioning with four brands surpassing $200 million in retail sales, a threshold reached by only 14 out of approximately 1,800 tracked cosmetics and skincare brands.