Jack Crivici-Kramer

But on the other hand...

Are you just losing money on the product?

Like Jack and I have said, sometimes you need a sacred cow product to protect your profit puppy.

Do you lose money on something like a $3 lip liner to make money elsewhere?

That's a really cool concept.

I mean, getting someone to basically duplicate the factory, but in a place where it makes sense for you economically.

Nonetheless, in May, you had to make what appeared to be an emotional Instagram post announcing to your community that you had to raise the price of all the products across the board by $1 starting in August because three-quarter of your products at the time were made in China.

Basically, Elf has gotten stuck in the trade war like others have, and your stock has fallen 35% in the last year mainly because of that.

Can you explain to our audience exactly why tariffs forced you to raise prices?

Like, was there a new bill that your...

So you're kind of saying on the communication side, when you got bad news like this, you got a few different routes.

You could just go on as planned and see how people react, or you could do like an honesty is the best policy.

We're just going to come out and tell you what's happening ahead of time.

Which seems to be what they did.

And that's how I, for you and me to operate, Nick.

When we're not sure what to say to our audience, I think let honesty be your guide.

We've got some questions about the comment section.

We'll get to that in a bit because that's an exciting area.

But first, Jack, I think there was some tariff math we were curious about, right?

You mentioned 60% was the effective tariff rate you dealt with in 2025.