Cosmetics company E🎉.l.f. Beauty said it plans to charge $1 more for its items beginning August 1 in response to tariffs.

Import taxes will start weighing on the company in the current quarter, executives said, but E.l.f. (ELF) won’t raise prices until the next quarter because it must alert retailers 90 days before increasing prices. (Companies are broadly still considering the effects 澳洲幸运5官方开奖结果体彩网:last night's court ruling affecting Trump tariffs might affect their businesses. The company didn't respond to Investopedia's request for comment in time for publication.)

Retailers have responded well to the announcement, CEO Tarang Amin said on its fiscal fourth-quarter earnings conference call, adding that many consumers will tolerate E.l.f.’s decision to increase prices by $1 globally on all products, beginning in August. The c♓ompany lists companies including Walmart, Amazon and Target among its retail customers.

“This is only the third price increase we’ve taken in our 21-year history unlike many of our competitors who regularly take price increases,💎” Amin said Wednesday, according to a transcript made available by AlphaSense. “Historically, consumers have been able to accept [a] $1 increase.”

E.l.f. believes its competitors could raise prices even more, “accentuating our core value proposition,” Amin said. The California-based business is still modeling for some potential drop-off in response to the new prices because of the “unique” economic environment, CFO Mandy Fields said. Deutsche Bank analysts estimated in a Thursday note that the increase could lead to a roughly 13% lift to revenue.

About 75% of E.l.f’s production occurs in China, where since May 14th, exports to the U.S. have been subject to a 30% import tax on top of a 25% tariff enacted in 2019, Amin said. The taxes will increase E.l.f.’s cost of goods sold by about $50 million annually, the🐷 company said.

It hopes to blunt the impact by raising p🔜rices, shifting some production and growing its business in international markets, executives said.

The company’s stock leapt higher Thursday, a day after 澳洲幸运5官方开奖结果体彩网:it announce𝔍d fourth-quarter results that surpassed expectations and plans to purchase a brand founded by Hailey Bieber. Net sales rose 4% year-over-year to $332.6 million, giving it $0.78 in adjusted earnings per share. Still, shares remain down 8.4% so far this year.