Ulta Beauty Its full-year sales outlook was raised on Thursday after beating Wall Street expectations for the third quarter and seeing shoppers splurge on perfume, skin care items and more.
The beauty retailer said it now expects net sales for the year to be about $12.3 billion, higher than its previous expectation of $12 billion to $12.1 billion. This would represent an increase from the previous fiscal year’s net sales of $11.3 billion. It expects earnings per share of between $25.20 and $25.50, up from its prior expectations of $23.85 to $24.30.
It forecasts that comparable sales, a measure that includes sales at stores open at least 14 months and e-commerce sales, will increase 4.4% to 4.7%, up from its earlier forecast of 2.5% to 3.5%.
Ulta has raised its sales and profit outlook for two consecutive quarters. Shares of the company rose more than 6% in extended trading.
In a press release, CEO Kecia Steelman said “exciting new assortment additions, enhanced in-store and digital experiences, and bold marketing efforts are resonating with our customers and driving strong sales results.”
During the company’s earnings call, she said Ulta was “pleased with our Black Friday and Cyber Monday performance” and ready for the shopping season, even when consumers may be more selective about spending.
“Our analytics suggest that beauty consumers’ budgets are tight and they are focused on value,” she said. “Despite this, beauty enthusiasts tell us they intend to spend on beauty products for seasonal needs, affordable splurges and gifts for loved ones. They are focused on restocking their essentials and strategically making smart, high-value purchases.”
Here’s what the retailer reported for the fiscal third quarter compared to what Wall Street expected, according to LSEG:
- Earnings per share: $5.14 versus $4.64 expected
- Income: $2.86 billion versus $2.72 billion expected
Ulta benefited as shoppers continued to spend on beauty products, even as they cut their budgets or sought less expensive options in other discretionary categories. Still, the company faces tougher competition from a wide range of rivals, including big-box retailers like Walmart, online players like Amazon and upstarts like TikTok Shop.
Sales of beauty products have been strong overall this year in the United States, according to data from market research firm Circana. During the first nine months of 2025, dollar sales of prestige beauty products increased 4% and sales of mass beauty products increased 5% year-over-year.
According to Circana, beauty is poised to become a popular category during the holidays, with surveys conducted by the market researcher indicating that more consumers are considering beauty products than a year ago, particularly those from higher-income households and those with children.
Revenue increased from $2.53 billion in the year-ago quarter.
Comparable sales jumped 6.3% year-over-year. Shoppers visited Ulta’s stores and websites more and spent more during their visits. The average ticket increased by 3.8% and transactions increased by 2.4% year over year.
In the three months ended Nov. 1, Ulta reported net income of $230.9 million, or $5.14 per share, compared with $242.2 million, or $5.14 per share, in the year-earlier quarter.
Although consumer confidence is weak, Steelman said during Ulta’s earnings conference call that “beauty engagement remains healthy.” She said sales of mass and prestige beauty items grew year-over-year in single digits.
Fragrances were their strongest category in the quarter, with double-digit year-over-year sales growth as shoppers purchased luxury fragrances from Valentino and Dolce & Gabbana as well as cheaper fragrances like Squishmallows perfumes.
Steelman said that in October, Ulta added more shelf space for fragrances in more than 60% of its U.S. stores to try to prepare for higher demand during the holidays and beyond.
In skin care, the retailer’s second-fastest-growing category, sales grew year-over-year in the single digits, she said. Shoppers purchased items they discovered on social media, including Korean and K-beauty brands, as well as products from Rihanna’s Fenty Skin Body collection, which launched in the fall.
To drive growth, Ulta has also expanded internationally and launched a third-party marketplace in October. In July, it announced that it had acquired Space NK, a British beauty retailer, from Manzanita Capital. The deal allows Ulta to enter a new international market, as Space NK has 83 stores in the UK and Ireland.
During the third quarter, Ulta opened seven stores in Mexico through its joint venture partnership with Grupo Bakso. It opened its first Ulta store in the Middle East, in Kuwait, last month through a franchise partnership with Al-Shabaab.
Through its marketplace, Ulta has added more than 120 brands and more than 3,500 unique items to its online assortment, Steelman said. She said the company was “pleased with initial performance and optimistic about how this new capability can help us strengthen our existing category, attract new customers and capitalize on incremental growth opportunities in new subcategories,” such as wellness.
Higher rates have also influenced some prices of items carried by Ulta. The company experienced more brand-related price increases in the third quarter than in the second quarter, said interim CFO Chris Lialios.
Sales in the hair care category increased by a mid-single digit rate, despite a decline in sales of personal styling tools that felt pressure from tariff-related price increases, Steelman said.
Ulta announced in October that Christopher DelOrefice, chief financial officer of medical technology company Becton Dickinson & Company, would become its new chief financial officer. He will take office on December 5.
As of Thursday’s close, Ulta shares are up about 23% year to date. That outpaces the S&P 500’s gains of nearly 17% over the same period.