By Anuja Bharat Mistry

(Reuters) -Elf Beauty raised its forecasts for annual sales and profit on Wednesday, betting on its efforts to sell cosmetics akin to lip oil and liquid blush at inexpensive price points within the U.S. and abroad, sending the corporate’s shares up 9% in prolonged trading.

Customers, who’ve been attempting to find lower-priced makeup and skincare products, have helped in boosting Elf’s sales in a difficult market where major beauty brands like Estee Lauder and L’Oreal have been wrestling to lift demand.

Elf expects net sales within the range of $1.32 billion to 1.34 billion, compared with its prior forecast of $1.28 billion to $1.30 billion.

The corporate’s strategy of introducing “dupes” of luxury cosmetics and pricing its products between $2 and $10 has further bolstered demand.

The California-based company has expanded product offerings to mass retailers akin to Walmart, Goal and Amazon.com helping it reach a wider customer base in the US.

Elf is expanding right into a subset of Dollar General stores in November, CEO Tarang Amin said on a post-earnings call, adding that it helps to tap a consumer base that only has access to some legacy mass brands.

Net sales rose 40% to $301.1 million for the quarter ended Sept. 30, compared with analysts’ average estimates of $285.8 million, as per data compiled by LSEG.

On an adjusted basis, it earned a profit of 77 cents per share, beating analysts’ estimates of 43 cents per share.

It expects annual adjusted earnings per share between $3.47 and $3.53, up from its prior range of $3.36 to $3.41.

Price increases in international markets akin to India and Germany and cost-saving measures helped Elf grow its second-quarter gross margin by 40 basis points to 71%.

Elf has a broad appeal across all income groups, Amin told Reuters, adding that the corporate’s “strategy is to have the best quality at an accessible price or at a unprecedented price.”

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shailesh Kuber)