Tarang Amin

It's a hybrid model.

We use like-minded suppliers who believe in ELF, believe in our standards on quality, on lean manufacturing.

And then a high degree of control.

It's our quality people in those facilities.

It's our lean manufacturing techniques.

And we work very closely to really make sure we have that best combination of cost, quality, and speed.

And again, it's an advantage we've honed, particularly over the last 12 years, and has allowed us to weather the storm, whether it be the pandemic, the post-pandemic inflation, right now even tariffs.

And we're committed to our suppliers.

We believe in long-term partnership.

And so we have done some diversification, but our favorite form of diversification is

take one of our strategic suppliers and have them set up the exact same facility outside of China as well.

So it gives us a great model.

And I'd say it has less to do with tariffs and more to do with a rapidly growing global business and making sure we have a robust global supply chain to meet the challenge.

procurement team was looking at and it's like wow we're paying for these tariffs what happens at the border can you just walk us through like how does this go down yeah sure so if you take a look at tariffs on china goods are the fiscal year at one point they're as high as 170 percent uh for the year we're going to average about 60 percent tariffs on our goods so i mean that's a real cost and it actually really means now our approach is we're always transparent with our community so well before three months before we took pricing

We announced to the community, like, hey, look, we're facing these pressures.

We're going to raise our prices a dollar.

We don't like doing it, but this is what's going on.

And the overwhelming response was really positive.

People are like, you know, we love that you're always up front with us.

You're always clear and letting us know what's going on.