Shares of e.l.f. Beauty shot 14 percent higher after the market closed Wednesday, as the company reported sales and earnings that handily topped Wall Street's forecasts. It also issued a rosier-than-expected outlook for the new fiscal year, as it continues to grow its nascent brand.
The stock was last trading hands at $29.01.
The firm, which applies a fast-fashion model to color cosmetics, grew sales by 17 percent in the fiscal fourth quarter, reaching $76.4 million. It earned 19 cents per share, excluding items, up from 14 cents a year earlier.
Wall Street had expected the company to report earnings of 14 cents per share on $74.5 million in sales.
"Our first strategy as a business is to build a great brand," CEO Tarang Amin told CNBC in an interview.
The business model at e.l.f., which stands for eyes, lips and face, hinges on bringing shoppers high-quality beauty products at a low price. Like fast-fashion retailers, it leans on its supply chain to take costs out of production, and bring a new item to market nearly every week. Its products are sold at retailers including Wal-Mart and Target, as well as its 19 branded stores.