e.l.f. Beauty Locks In US$500M Credit and Repurchases US$50M in Stock
e.l.f. Beauty has entered into a new US$500 million revolving credit agreement, securing lower interest rates compared to its previous facility. The post e.l.f. Beauty Locks In US$500M Credit and Repurchases US$50M in Stock appeared first on Global Cosmetics News.
THE WHAT? e.l.f. Beauty has entered into a new US$500 million revolving credit agreement, securing lower interest rates compared to its previous facility. Simultaneously, the cosmetics brand repurchased US$50 million of its common stock under a broader US$500 million buyback program.
THE DETAILS
- Following this transaction, US$450 million remains available for future share repurchases.
- With 80% of e.l.f.’s products sourced from China, the company is bracing for potential tariff impacts, which may force it to revisit pricing well into fiscal year 2026.
- Although consumer pushback to past price increases has been minimal, e.l.f. Beauty lowered its Q4 outlook due to softer January sales and broader challenges in the beauty sector.
THE WHY? By solidifying its credit resources and repurchasing shares, e.l.f. Beauty aims to maintain financial flexibility and value for stakeholders amid an uncertain trade landscape. Tariff pressures and changing consumer patterns are prompting the brand’s cautious approach heading into the next fiscal year.
The post e.l.f. Beauty Locks In US$500M Credit and Repurchases US$50M in Stock appeared first on Global Cosmetics News.
