UPDATE 1-Bare Escentuals Q3 trails Street; 2008 outlook cut

* Q3 EPS 25 cents trails Street by 1 cent

* Q3 sales $130.2 mln lags est. $143.1 mln

* 2008 outlook cut on challenging consumer environment

* Shares down 24 pct
Cosmetics maker Bare Escentuals Inc (BARE.O: Quote, Profile, Research, Stock Buzz) posted lower-than-expected third-quarter results and cut its 2008 outlook, citing a weak consumer environment and business trends, sending its shares down 24 percent. [ID:nWNAB5356]

The company, which sells skin care and body care products under the bareMinerals, RareMinerals and its namesake brands, expects sales and earnings growth of about 10 percent for fiscal-year 2008, including charges. [ID:nBw306170a]

The company reported earnings of 95 cents a share on revenue of $511.0 million in the 2007 financial year.

The San Francisco-based company had earlier forecast sales growth of 15 percent to 20 percent and earnings of about $1.13 to $1.18 a share for the current fiscal year.

Bare Escentuals, which competes with Elizabeth Arden Inc (RDEN.O: Quote, Profile, Research, Stock Buzz) and larger rivals like Estee Lauder Cos Inc (EL.N: Quote, Profile, Research, Stock Buzz), posted net income of $22.9 million for the third quarter, compared with $20.5 million a year earlier.

Shares of the company were down at $5.25 in extended-hours trade, after closing at $6.87 Thursday on Nasdaq. (Reporting by Dilipp S Nag in Bangalore; Editing by Pratish Narayanan)