Elf Beauty (ELF) Lifts Annual Forecasts on Affordable Cosmetics Demand

[Para 1: The Lead] Elf Beauty (ELF) raised its annual sales and profit forecasts, surpassing Wall Street estimates for the third quarter. The company, facing economic and tariff uncertainties, saw resilient sales in the U.S., attributing it to cost-conscious shoppers opting for lower-priced makeup and skincare. The forecast adjustments reflect sales in the $1.60 billion to $1.61 billion range and adjusted earnings per share between $3.05 and $3.10, up from prior estimates. [Para 2-3: Supporting details & Context] Elf Beauty, having acquired Hailey Bieber's Rhode brand, expanded distribution across retailers including Dollar General, Amazon, Target, and Walmart. Recent marketing efforts and a Sephora launch boosted brand awareness. Despite $50 million in annual tariffs costs, Elf implemented a $1 global price increase in August 2025 to mitigate pressures. Of its products, 75% are priced at $10 or less. China accounts for 75% of global production as of November 2025. For the third quarter ended December 31, sales rose 38% to $489.5 million, exceeding analyst estimates of $460.2 million. Adjusted earnings per share were $1.24, surpassing the estimate of 72 cents per share.