Latest news with #Amin
Yahoo
a day ago
- Business
- Yahoo
Cosmetics Company E.l.f. Plans a Tariff-Driven $1 Price Hike in August
E.l.f. Beauty plans to universally increase all of its prices by $1, beginning Aug. 1 because of tariffs, the company said. The cosmetic company estimates the impact of tariffs will be $50 million annually because 75% of its production occurs in China. Executives said they believe many retail partners and consumers will understand the 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 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 company 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 prices, shifting some production and growing its business in international markets, executives said. The company's stock leapt higher Thursday, a day after it announced 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. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
e.l.f. CEO says customers were ‘quite positive' about the beauty giant raising prices due to tariffs: ‘We're not trying to pull anything over on anyone'
Budget beauty giant e.l.f. recently announced plans to increase the cost of its products by $1 due to tariffs. CEO Tarang Amin told Fortune customers have reacted positively to the announcement. 'This is exactly what we're facing, and they understand,' he said. Increased pricing is one of a few mitigation strategies the company is employing given tariff uncertainty. As companies brace for the impact of tariffs by passing down increased costs to consumers, not all businesses have drawn the ire of cautious shoppers. After budget beauty giant e.l.f. announced it would raise prices due to the levies, its customers were grateful for the heads-up, according to CEO Tarang Amin. 'The overwhelming response has been quite positive from our community. They appreciate [that] e.l.f. is always transparent,' Amin told Fortune. 'We're not trying to pull anything over on anyone. This is exactly what we're facing, and they understand.' E.l.f announced this week plans to raise the prices of its products by $1, starting Aug. 1. 'Bringing you the best of beauty is getting more $$$ but we're committed to keeping the quality high and prices the brand said in an Instagram caption about the price increase. 'We are keeping an [eye] on the tariff situation as it evolves.' In the first months of President Donald Trump's second term, consumer sentiment fell to its lowest levels since 2021 as a result of tariff uncertainty. In April, consumer confidence rebounded after Trump's trade deal with China lowered the taxes from 145% to 30%. The future of tariffs continues to be shrouded in uncertainty. The U.S. Court of International Trade blocked Trump's tariffs, ruling on Wednesday the White House did not have the authority to impose the sweeping economic sanctions. 'Today's news emphasizes the uncertainty and noise around tariffs,' Amin told Fortune in a statement. 'What would be helpful to us and other companies is long-term resolution so we can focus on long-term strategy….We will continue to be transparent with our community and bring them on the journey as they are incredibly important voices in our business conversations.' The company did not provide fiscal 2026 guidance in its fourth-quarter and full fiscal 2024 earnings on Wednesday due to tariff unpredictability. E.l.f. posted $332.6 million in quarterly net sales, a 4% year-over-year increase, as well as a 28% boost in year-over-year annual net sales to $1.3 billion. The price increase is one of a handful of mitigation techniques e.l.f. is implementing to offset the impact of tariffs. Since 2019, following Trump's tariffs on China during his first term, e.l.f. began shifting some of its supply chain away from China, where it once had about 100% of its production. Today, e.l.f. has about 75% of its supply chain in China, according to Amin, but the company is not planning to completely divest from operations there. 'We're also not like some companies that say they're 100% getting out of China,' Amin said. 'We're committed to our team and our suppliers there, and we want to continue long term partnerships that we've developed over the years that give us the advantage that we see.' Instead, e.l.f. has diversified production across China, Europe, Thailand, and the U.S., Amin said, with the intention to continue to expand U.S. production. Hailey Bieber's beauty brand Rhode, which e.l.f. just acquired in a $1 billion deal, has most of its production in South Korea and Italy. The company is also relying more heavily on its international demand, the fastest-growing part of the business, according to Amin. 'You're going to see a globally distributed core supply chain for us, the main objective of which is to meet the global consumer demand we see for our brands,' he said. E.l.f. will employ its communication style regarding tariff ramifications internally as well. The company gives its 600 workers equity when they are hired, as well as new grants every year, meaning stock-market jitters as a result of tariff concerns has direct stakes for e.l.f employees, chief people officer Scott Milsten told Fortune last month. 'We sort of overshare internally,' Milsten said. 'So while this is a time when I think you might find companies sort of retreating into silence, we absolutely go the other way.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
2 days ago
- Business
- Time of India
Altimetrik Closes in on SLK Software Buyout
Live Events Altimetrik, the US-based digital services firm owned by PE major TPG Capital , is in advanced talks to acquire Bengaluru-headquartered SLK Software , according to people familiar with the matter. The deal is expected to peg SLK's value at $500-600 million (₹4,270-5,100 crore).Altimetrik has signed an exclusivity agreement with SLK, according to the people was first to report in February that a number of IT companies, including Mphasis, Hexaware Technologies and Altimetrik, were in the race to acquire in 2000 and promoted by the Amin family, SLK Software (formerly SLK Digital) provides AI-driven technology solutions with a focus on intelligent automation and company has delivery centres in seven countries, including India and the US, with clients in manufacturing, banking, insurance and financial is projected to report ebitda of about $40 million in FY25, said people aware of the financials. Its client roster includes Google Cloud, Microsoft, Oracle and Software CEO Ajay Kumar and Altimetrik didn't respond to last year acquired a 60% stake in Altimetrik from Indian-American tech entrepreneur Raj Vattikuti at a valuation of $1.5 billion (Rs 12,500 crore). Altimetrik employs over 6,000 professionals in 18 countries, with more than 80% of its workforce based in India. The company helps businesses implement digital transformation, according to its has offices in Pune, Chennai, Bengaluru, Hyderabad, Jaipur and Gurgaon. The company recently appointed Rajeev Jain, formerly executive vice president at LTIMindtree, as chief operating India presence includes offices in Bengaluru and Pune besides Cincinnati and Chicago in the US. It also maintains operations in France, the Netherlands, Germany, the UK and Singapore. In 2021, SLK's promoters sold a controlling stake in its BPM arm, SLK Global Solutions, to Coforge Ltd for Rs 920 primarily serves regional banks, manufacturers and energy sector clients in the US. As part of its global expansion, the company last year partnered with Greymatter Innovationz in Mexico to form GMI-SLK Mexico, strengthening its footprint in Latin digital engineering services (DES) sector is seeing heightened M&A activity driven by high-quality, globally distributed assets, rapid growth verticals, and intellectual property led business models, said a recent report by Avendus equity firms, responsible for over 50% of such deals in the past decade, are accelerating consolidation to build scalable platforms and unlock operational global tech services industry recorded 216 transactions worth $334 billion between January 2013 and September 2024, with each deal exceeding $300 million in India's software products market is projected to grow from $15 billion in FY23 to $44 billion by FY31, underscoring the expanding potential for tech investments.
Fashion Network
2 days ago
- Business
- Fashion Network
Elf Beauty logs 28% annual sales surge, acquires Hailey Bieber's Rhode beauty brand
Annual net income was down to $112.1 million for fiscal 2025, slipping from $127.7 million in the prior-year period, according to Elf Beauty. 'In this dynamic environment, we continue to deliver industry-leading results. In fiscal 2025, we grew net sales 28%, gained 190 basis points of market share in the U.S. and continued our international expansion strategy,' said Tarang Amin, Elf Beauty's chairman and chief executive officer, adding the company is not providing a fiscal 2026 financial outlook at this time, due to the recent tariff uncertainty. In a separate release on Wednesday, Elf Beauty said it has snapped up Gen Z-focused celebrity brand Rhode for $800 million, in a combination of cash and stock, and an additional potential earnout consideration of $200 million, subject to certain performance-related conditions. The Rhode deal signals a shift in strategy for the budget beauty retailer as it looks to the prestige beauty market to combat weaker demand from its mass market cosmetics. 'We believe we have the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of Rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands," added Amin, in a release. Bieber will continue in her role as founder of Rhode and will also act as a strategic advisor after the deal closes in the second quarter of fiscal 2026. "Elf Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally," said the model-turned-entrepreneur, as part of the announcement.
Economic Times
2 days ago
- Business
- Economic Times
Altimetrik nears Rs 5,100 crore acquisition of SLK Software
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Altimetrik, the US-based digital services firm owned by PE major TPG Capital , is in advanced talks to acquire Bengaluru-headquartered SLK Software , according to people familiar with the matter. The deal is expected to peg SLK's value at $500-600 million (Rs 4,270-5,100 crore).Altimetrik has signed an exclusivity agreement with SLK, according to the people cited. ET was first to report in February that a number of IT companies, including Mphasis, Hexaware Technologies and Altimetrik, were in the race to acquire SLK. Founded in 2000 and promoted by the Amin family, SLK Software (formerly SLK Digital) provides AI-driven technology solutions with a focus on intelligent automation and company has delivery centres in seven countries, including India and the US, with clients in manufacturing, banking, insurance and financial is projected to report ebitda of about $40 million in FY25, said people aware of the financials. Its client roster includes Google Cloud, Microsoft, Oracle and Salesforce. SLK Software CEO Ajay Kumar and Altimetrik didn't respond to queries. TPG last year acquired a 60% stake in Altimetrik from Indian-American tech entrepreneur Raj Vattikuti at a valuation of $1.5 billion (Rs 12,500 crore).Altimetrik employs over 6,000 professionals in 18 countries, with more than 80% of its workforce based in India. The company helps businesses implement digital transformation, according to its website. Altimetrik has offices in Pune, Chennai, Bengaluru, Hyderabad, Jaipur and Gurgaon. The company recently appointed Rajeev Jain, formerly executive vice president at LTIMindtree , as chief operating India presence includes offices in Bengaluru and Pune besides Cincinnati and Chicago in the US. It also maintains operations in France, the Netherlands, Germany, the UK and Singapore. In 2021, SLK's promoters sold a controlling stake in its BPM arm, SLK Global Solutions, to Coforge Ltd for Rs 920 crore. SLK primarily serves regional banks, manufacturers and energy sector clients in the US. As part of its global expansion, the company last year partnered with Grey matter Innovationz in Mexico to form GMI-SLK Mexico, strengthening its footprint in Latin digital engineering services (DES) sector is seeing heightened M&A activity driven by high-quality, globally distributed assets, rapid growth verticals, and intellectual property led business models, said a recent report by Avendus Capital. Private equity firms, responsible for over 50% of such deals in the past decade, are accelerating consolidation to build scalable platforms and unlock operational value. The global tech services industry recorded 216 transactions worth $334 billion between January 2013 and September 2024, with each deal exceeding $300 million in India's software products market is projected to grow from $15 billion in FY23 to $44 billion by FY31, underscoring the expanding potential for tech investments.
