(Reuters) - Ulta Beauty ( ULTA ) 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 ).

Ulta Beauty ( ULTA ) 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 ) 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 ( ULTA ) 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 ( ULTA ) 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.