ELF Beauty said it saw weak demand in January because of the LA wildfires and uncertainty over TikTok.ELF's CEO, Tarang Amin, said that social conversations around beauty dropped because of these factors.The brand suffered a 36% drop in profits in its latest quarter and lowered its 2025 outlook.Budget beauty brand ELF Beauty said demand for the beauty industry was weaker in January because of uncertainty over the banning of TikTok.The company's latest quarter, which ended on December 31, saw a 36% year-on-year profit drop. The company lowered its fiscal outlook for 2025 because of "softer than expected trends in January," according to the earnings report.ELF's CEO, Tarang Amin, said in a Thursday earnings call that January was a "weak month" for the brand. He said that the banning of TikTok and the devastating LA wildfires led to a drop in conversations about beauty on social media in January."First, the category continued to decline in January. We believe this decline is reflective of consumers stocking up in a highly promotional December and lower social conversation around beauty," Amin said. "Consumer mindshare was focused elsewhere, including wildfires in LA and uncertainty around the TikTok platform."He added that brands did not want to be "tone-deaf" during the wildfires. And regarding TikTok, he said that "the only thing people were posting on TikTok was whether it was going to stay open or shut down."TikTok, a social media platform by Chinese company ByteDance, faces an imminent banning in the US as the Supreme Court has imposed a divest-or-ban law on it.It was originally supposed to be banned on January 19, but President Donald Trump signed an executive order on the day of his inauguration to delay the ban by 75 days.TikTok Shop, which is the app's e-commerce feature, was the ninth-biggest online retailer for the beauty industry in the US as of February 2024, according to a report by software company Dash Hudson and Chicago-based market research company NielsenIQ.ELF reported a 31% increase in sales in the latest quarter compared to the same quarter a year ago. It earned revenues of $355 million.However, higher sales and tax costs reduced its net income, according to its consolidated statements.ELF's stock price dropped more than 24% in after-hours trading on Thursday.Representatives for ELF Beauty did not respond to a request for comment from Business Insider, sent outside regular business hours.