CORRECTED-Elf Beauty tops quarterly estimates on resilient demand for affordable lipsticks and skincare

Aug 6 (Reuters) - Elf Beauty ELF.N beat first-quarter sales and profit estimates on Wednesday, fueled by resilient demand for its affordable products including lip oils and blush tints at retailers and online channels, despite broader retail slowdown.

Shares of the company were up about 5% after the bell.

The beauty retailer known for its vegan lip oils — available at drugstores and supermarkets including Walgreens, Target TGT.N as well as Dollar General DG.N — has been able to resonate with millennial and Gen Z shoppers, who are often on the hunt for trendy makeup and skincare products.

This, in turn, has been benefiting sales growth at Elf — short for eyes, lips and face — offering products priced as low as $2 at U.S. retailers including Walmart WMT.N and Ulta Beauty ULTA.O.

Meanwhile, luxury beauty makers such as Estee Lauder EL.N have been struggling to revive demand and the Trump administration's unpredictable trade policy has disrupted business operations worldwide.

The company continues to refrain from providing an annual forecast owing to tariff-related uncertainty.

Elf, which acquired Hailey Bieber's makeup brand Rhode, increased product prices by $1 across categories starting August 1 to counter trade-related costs, similar to broader industry peers.

The company, which has reduced its production from China to "little less" than 75% from about 100% back in 2019, has also been optimizing its supply chain and diversifying its business to be able to address tariff-related headwinds, CEO Tarang Amin told Reuters on Wednesday.

The company's quarterly revenue of $353.7 million beat estimates of $350.3 million, as per data compiled by LSEG.

On an adjusted basis, the company's earnings came in at 89 cents per share, compared with analysts' estimates of 84 cents per share.