(Reuters) -Elf Beauty ( ELF ) forecast annual sales and profit below Wall Street estimates on Wednesday, as the cosmetics-maker grapples with rising tariff-related costs amid a frugal consumer spending environment, sending shares down 19% in extended trading.

The company, which provided its fiscal 2026 forecast for the first time after pulling it back in May, also missed market expectations for second-quarter sales.

Elf Beauty ( ELF ) has felt the heat from U.S. President Donald Trump's sweeping import tariffs, especially on goods from major suppliers such as China, where about 75% of the cosmetics maker's global production is made.

Its gross margin fell about 165 basis points to 69% in the quarter ended September 30.

For fiscal 2026, the company expects over $50 million in annual costs from higher tariffs.

The firm, which acquired Hailey Bieber-owned brand Rhode earlier this year, has been streamlining its supply chain and diversifying operations as part of its tariff mitigation plans.

Elf's quarterly adjusted earnings per share of 68 cents topped estimates of 57 cents after $1 price increases in August. The company said it is not planning additional price increases.

Amid these pressures, lower-income shoppers are seeking cheaper alternatives and cutting back on non-essential purchases, including makeup and skincare.

This trend, which has been hurting sales at luxury players like Estee Lauder and L'Oreal, is starting to pressure sales at Elf Beauty ( ELF ), a brand known for its affordable cosmetics.

The company expects full-year net sales to be between $1.55 billion and $1.57 billion, compared with analysts' estimates of $1.65 billion, according to data compiled by LSEG.

It estimates adjusted profit to be in the range of $2.80 to $2.85 per share, largely below estimates of $3.58 per share.

Elf - short for eyes, lips and face - also missed market estimates for quarterly sales of $343.9 million, compared to analysts' expectations of $366.4 million.