Ulta Beauty on Thursday raised its full-year gross sales outlook after topping Wall Street’s fiscal third-quarter expectations and seeing buyers splurge on perfumes, skincare objects and extra.
The magnificence retailer mentioned it now expects web gross sales for the 12 months to be roughly $12.3 billion, increased than its earlier expectations of $12 billion to $12.1 billion. That would would characterize a rise from final fiscal 12 months’s web gross sales of $11.3 billion. It expects earnings per share of $25.20 to $25.50, up from its prior expectations of $23.85 to $24.30.
It anticipates comparable gross sales, a metric that features gross sales at shops open not less than 14 months and e-commerce gross sales, to rise by 4.4% to 4.7%, up from its prior outlook of two.5% to three.5%.
Ulta has raised its gross sales and revenue outlook for 2 consecutive quarters. The firm’s stock rose greater than 6% in prolonged buying and selling.
In a news launch, CEO Kecia Steelman mentioned “exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results.”
On the corporate’s earnings name, she mentioned that Ulta is “pleased with our Black Friday and Cyber Monday performance” and prepared for the purchasing season — even one when shoppers could also be extra selective about spending.
“Our insights suggest beauty consumers’ budgets are tight and they are focused on value,” she mentioned. “Despite this, beauty enthusiasts tell us that they spend intend to spend on beauty for seasonal needs, affordable splurges and gifts for loved ones. They are focused on replenishing their essentials and strategically making smart purchases around strong value.”
Here’s what the retailer reported for the fiscal third quarter in contrast with what Wall Street anticipated, based on LSEG:
- Earnings per share: $5.14 vs. $4.64 anticipated
- Revenue: $2.86 billion vs. $2.72 billion anticipated
Ulta has benefitted from buyers who’ve saved spending on magnificence, whilst they trim the funds or search out lower-priced choices in different discretionary classes. Yet the corporate faces stiffer competitors from a variety of rivals, together with big-box retailers like Walmart, on-line gamers like Amazon and upstarts like TikTookay Shop.
Beauty gross sales have been sturdy general this 12 months within the U.S., based on information from market analysis agency Circana. In the primary 9 months of 2025, status magnificence gross sales when it comes to {dollars} rose 4% and mass magnificence gross sales rose 5% 12 months over 12 months.
According to Circana, magnificence is poised to be a preferred class through the holidays, with the market researcher’s surveys indicating that extra shoppers plan to present magnificence merchandise than a 12 months in the past, significantly these in households with higher-incomes and people with youngsters.
Revenue rose from $2.53 billion within the year-ago quarter.
Comparable gross sales jumped by 6.3% 12 months over 12 months. Shoppers visited Ulta’s shops and web sites extra and spent extra throughout visits. Average ticket rose 3.8% and transactions elevated by 2.4% 12 months over 12 months.
In the three-month interval that ended Nov. 1, Ulta reported web earnings of $230.9 million, or $5.14 per share, in contrast with $242.2 million, or $5.14 per share, within the year-ago quarter.
Though client confidence is weak, Steelman mentioned on Ulta’s earnings name that “beauty engagement remained healthy.” She mentioned gross sales of each mass and status magnificence objects grew by mid single-digits 12 months over 12 months.
Fragrance was its strongest class within the quarter, with double-digit gross sales progress 12 months over 12 months, as buyers purchased luxurious scents from Valentino and Dolce & Gabbana and in addition lower-priced scents like Squishmallows perfumes.
Steelman mentioned that in October, Ulta added extra shelf area for perfume in additional than 60% of its U.S. shops to attempt to prepare for increased demand through the holidays and past.
In skincare, the retailer’s second-fastest rising class, gross sales grew by excessive single digits 12 months over 12 months, she mentioned. Shoppers purchased objects they found on social media, together with Korean or Ok-beauty manufacturers and bought merchandise from Rihanna’s Fenty Skin Body assortment, which launched within the fall.
To drive progress, Ulta has additionally been increasing internationally and launched a third-party market in October. In July, it introduced it had acquired Space NK, a British magnificence retailer, from Manzanita Capital. The deal permits Ulta to enter a brand new worldwide market, since Space NK has 83 shops within the United Kingdom and Ireland.
During the third quarter, Ulta opened seven shops in Mexico by its three way partnership partnership with Grupo Bakso. It opened its first Ulta retailer within the Middle East in Kuwait final month by a franchise partnership with Al-Shabaab.
Through its market, Ulta has added greater than 120 manufacturers and over 3,500 distinctive objects to its on-line assortment, Steelman mentioned. She mentioned the corporate is “pleased with the initial performance and optimistic about how this new capability can help us strengthen our existing category, attract new guests, and capitalize on incremental growth opportunities in new subcategories,” resembling wellness.
Higher tariffs have influenced among the costs of things carried by Ulta, too. The firm noticed extra brand-driven value will increase within the third quarter than the second quarter, interim Chief Financial Officer Chris Lialios mentioned.
Sales within the haircare class grew by mid single-digits, regardless of a gross sales decline in private styling instruments which have felt strain from tariff-related value will increase, Steelman mentioned.
Ulta introduced in October that Christopher DelOrefice, the chief monetary officer of medical expertise firm Becton Dickinson & Company, will develop into its new CFO. He will begin within the position on Dec. 5.
As of Thursday’s shut, Ulta’s shares have risen about 23% thus far this 12 months. That surpasses the S&P 500’s practically 17% features throughout the identical interval.