May 29 (Reuters) - Ulta Beauty raised its annual profit forecast after beating quarterly results on Thursday, as lower inventory losses as well as new launches such as Milk Makeup and K-Beauty skincare brands helped drive demand at its stores.

Shares of the company were up about 8% in trading after the bell.

Cosmetics retailer saw uptick in sales across its stores, especially from younger shoppers willing to spend on trendy and affordable brands such as Elf Beauty ELF.N.

Ulta Beauty has strengthened customer traffic by introducing celebrity-owned brands, such as Rihanna's Fenty Beauty, along with investments in marketing and digital channels.

The company expects annual profit to be in the range of $22.65 to $23.20 per share, compared with a prior forecast of $22.50 to $22.90 per share.

It posted quarterly sales of $2.85 billion, compared with the analysts' estimate of $2.79 billion, as per data compiled by LSEG.

The company's comparable sales in the quarter ended May 3 rose 2.9% compared to a year ago, driven by a 2.3% increase in average ticket and a 0.6% rise in transactions.

It earned quarterly adjusted profit of $6.70 per share, topping the estimate of $5.81 per share.

Budget-cosmetic brand Elf Beauty posted an upbeat quarter on resilient demand, while luxury firms such as Estee Lauder's EL.N business remained pressured due to tariff uncertainty.

The Trump administration's unpredictable tariff shifts have disrupted businesses and shaken consumers worldwide, who are now bracing for an economic recession.

Ulta Beauty expects comparable sales for fiscal 2025 to be in the range of flat to up 1.5%, compared with the prior forecast of flat to up 1%.

"The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve," said CEO Kecia Steelman.

Lower inventory losses or damages helped Ulta Beauty in countering higher store and supply chain-related costs.

Its quarterly gross profit increased 4.2% to $1.11 billion compared with a year ago.