Feb 4 (Reuters) - Elf Beauty ELF.N raised its annual sales and profit forecasts after beating Wall Street estimates for third-quarter results on Wednesday, as demand for its affordable cosmetics stayed strong despite rising economic and tariff uncertainty.

The company enjoyed resilient sales in the United States as cost-conscious shoppers who are already wary of rising living costs and macroeconomic uncertainty chose its lower-priced makeup and skincare offerings.

Elf Beauty, which acquired Hailey Bieber's Rhode brand last year, has expanded distribution across online and in-store retailers including Dollar General DG.N, Amazon AMZN.O, Target TGT.N and Walmart WMT.N, while recent marketing efforts and a launch at Sephora helped boost brand awareness.

However, U.S. import tariffs under President Donald Trump have added to business uncertainty. The company previously said it expected more than $50 million in annual costs from higher U.S. import tariffs in fiscal-year 2026. China accounts for about 75% of its global production as of November last year.

Elf had implemented a $1 global portfolio-wide price increase in August 2025 to mitigate tariff pressures. Despite the price hike, it said 75% of its products were priced at $10 or less.

The company now expects full-year net sales in the $1.60 billion to $1.61 billion range, up from its prior forecast of $1.55 billion to $1.57 billion. It sees annual adjusted earnings per share between $3.05 and $3.10, up from the $2.80 to $2.85 range expected earlier.

Elf - short for eyes, lips and face - provided its fiscal 2026 forecast for the first time in November 2025 after pulling it in May.

For the third quarter ended December 31, sales rose 38% to $489.5 million, above analysts' estimate of $460.2 million, according to data compiled by LSEG.

Adjusted earnings per share came in at $1.24, beating an estimate of 72 cents per share.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Pooja Desai)

((Neil.JKanatt@thomsonreuters.com))