e.l.f. Beauty announced that, effective November 10, 2025, its e.l.f. Cosmetics and e.l.f. SKIN brands will be sold in every ULTA Beauty store in Mexico and on ULTA’s e‑commerce platform, marking the first time the company’s products will be available in a Mexican brick‑and‑mortar specialty retailer.
The launch is part of e.l.f.’s broader international expansion strategy, which has already seen the brand enter markets such as Germany, the United Kingdom, and the United Arab Emirates. Mexico represents a high‑growth beauty market, and the partnership with ULTA—an established retailer with a strong online presence—provides e.l.f. with immediate shelf space and a distribution network that can accelerate sales in the region.
In its most recent quarterly report, e.l.f. reported revenue of $343.9 million for the second quarter of fiscal 2026, a 14% year‑over‑year increase that still fell short of the $367.95 million consensus estimate. Adjusted earnings per share were $0.68, beating the $0.57 consensus by $0.11. The company guided fiscal 2026 revenue to $1.55–$1.57 billion, below the $1.65 billion consensus, and adjusted EPS to $2.80–$2.85, well below the $3.53 consensus. Gross margin contracted 165 basis points to 69% because of higher tariff costs, while net income dropped 84% to $3 million from $19 million a year earlier.
CEO Tarang Amin said the Mexico launch “underscores our commitment to expanding internationally and bringing affordable, high‑quality beauty to new markets.” Senior Vice President and Chief Commercial Officer Jennie Laar added that the partnership with ULTA “provides a powerful platform to reach a broad customer base in Mexico, where demand for accessible beauty products is growing.”
The company’s recent earnings highlight the challenges it faces: a revenue miss, lower guidance, and margin pressure from tariffs. These headwinds temper the enthusiasm for the Mexico launch, but the expansion remains a strategic move to diversify revenue streams and tap a large, underserved market. Management’s focus on cost control and pricing strategy helped secure an EPS beat, while the lower guidance signals caution about near‑term growth prospects. The Mexico launch, therefore, is a positive step that must be viewed against the backdrop of broader market headwinds and the company’s ongoing efforts to maintain profitability.
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