Is e.l.f. Beauty's Gross Margin Poised to Rebound in 2H26?

Key Takeaways e.l.f. Beauty's Q2 gross margin fell 165 bps y/y to 69%.ELF said tariff rates moderated after peaking, with every 10-point change affecting costs by about $17M.ELF expects a 71% gross margin in 2H26, supported by pricing and accretive mix.Gross margin recovery is emerging as a key focus for e.l.f. Beauty, Inc. (ELF) as the company navigates elevated tariff pressures while continuing to invest in growth in fiscal 2026. Although the fiscal second quarter reflected notable cost headwinds, managem ...