Elf Beauty, Helen of Troy exposed to China tariffs, says Canaccord

After President Trump yesterday announced universal tariff increases across all foreign imports, Canaccord told investors that among the firm’s beauty, health, and wellness coverage that Elf Beauty (ELF) continues to be the most exposed due to its reliance on China manufacturing. With an effective 54% rate expected from Chinese imports, the firm estimates an over 60c EPS headwind to annualized earnings if unmitigated when comparing estimated impacts from a baseline 25% tariff rate on Chinese imports. The firm also expects Helen of Troy (HELE) to be exposed due to their manufacturing exposure to China and their near-shoring initiatives to Mexico and due to 20% tariffs on European-imported goods it believes fragrance company Interparfums (IPAR) is now exposed as well, the analyst tells investors. Other covered companies include Beachbody (BODI), Coty (COTY), Estee Lauder (EL), Edgewell (EPC), Grove Collaborative (GROV), Kenvue (KVUE), Nature’s Sunshine (NATR), Olaplex (OLPX), Prestige (PBH), Perrigo (PRGO), Peloton (PTON), Sally Beauty (SBH), Beauty Health (SKIN), Ulta (ULTA) and Waldencast (WALD).