E.l.f. Beauty shares are down nearly 13% after the company pulled its full-year forecast.

CFO Mandy Fields said e.l.f. plans to issue guidance once the U.S.'s approach to trade with China becomes clearer.

About 75% of e.l.f. products are manufactured in China and currently subject to a 55% import tax once they reach the U.S., Fields said.

E.l.f. Beauty shares buckled amid uncertainty over the future of Chinese tariffs.

The cosmetic company’s stock was down almost 13% the morning after executives pulled their full-year forecast. E.l.f. Beauty (ELF) expects sales growth of at least 9% year-over-year in the first half of its fiscal year, CFO Mandy Fields said, but the company won’t issue a full 2026 forecast until the U.S.'s approach to trade with China becomes clearer.

Sales in the quarter ended June 30 were up 5% year-over-year in the U.S. and 9% overall to $353.7 million. The California-based company was monitoring how people react to a $1 price increase enacted Aug. 1, Fields said.

“We're still reading how the consumer will respond to that,” Fields said, according to a transcript made available by AlphaSense. She acknowledged that “they’re continuing to be choiceful with how they’re spending.”

Beyond charging more, the company aims to offset the cost of tariffs by expanding abroad and optimizing its supply chain. Currently, about 75% of e.l.f. products are made in China—the same portion cited on e.l.f.’s last quarterly earnings conference call.

Once products manufactured in China reach the U.S., they are subject to a cumulative import tax of 55%—down from the 170% rate imposed this spring, Fields said. If the current tariff schedule remains in place, e.l.f.’s cost of goods sold would increase by about $50 million annually, she said. (The U.S. and China are trying to reach a trade agreement before Aug. 12, when the White House said a higher tariff will be reinstated.)

E.l.f. shares are down about 24% so far this year.

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