ulta beauty on Thursday beat Wall Street’s fiscal third-quarter estimates and raised its full-year sales outlook after shoppers splurged on perfumes, skin care items and more.
The beauty retailer said it expects net sales to be about $12.3 billion this year, higher than its previous forecast of $12 billion to $12.1 billion. This is an increase from the prior year’s net sales of $11.3 billion. The company now expects earnings of $25.20 to $25.50 per share, up from its previous forecast of $23.85 to $24.30.
Comparable sales, which include sales at stores open for at least 14 months and e-commerce sales, are expected to increase 4.4% to 4.7%, compared with previous expectations of 2.5% to 3.5%.
Alta raised its sales and profit outlook for the second consecutive quarter. The company’s shares rose more than 6% in extended trading.
In a news release, CEO Keshia Steelman said, “Our new product offerings, enhanced in-store and digital experiences, and bold marketing efforts resonated with our customers and resulted in strong sales results.”
On the company’s earnings call, he said Ulta was “pleased with our performance on Black Friday and Cyber Monday” and is ready for a shopping season when consumers will be more cautious about their spending.
“Our insights suggest that beauty consumers are on tight budgets and value-oriented,” she said. “Nevertheless, beauty enthusiasts are telling us they plan to spend on beauty for seasonal needs, affordable splurges, and gifts for loved ones. They are focused on restocking essentials and strategically and smartly purchasing high-value items.”
Here’s how retailers reported for their fiscal third quarter compared to Wall Street’s expectations, according to LSEG.
Earnings per share: $5.14 vs. $4.64 expected Revenue: $2.86 billion vs. $2.72 billion expected
Ulta has benefited from shoppers who continue to spend money on beauty products while cutting back on budgets or looking for lower-priced options in other discretionary categories. But the company faces more competition from a wide range of rivals, including big retailers like Walmart, online players like Amazon, and startups like TikTok Shop.
Beauty product sales were strong overall in the U.S. this year, according to data from market research firm Circana. In the first nine months of 2025, luxury beauty sales in dollar terms increased 4% year-over-year, while consumer beauty sales increased 5%.
According to Circana, beauty products are expected to be a popular category during the holiday season, with research from market researchers showing that more consumers plan to gift beauty products than a year ago, especially those in high-income households and households with children.
Sales increased from $2.53 billion in the same period last year.
Comparable sales increased by 6.3% year-on-year. Shoppers visited Ulta stores and websites more often and spent more during their visits. The average number of tickets increased by 3.8% year-on-year, and transaction value increased by 2.4%.
For 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-ago period.
Despite weak consumer confidence, Steelman said on Ulta’s earnings call that “beauty engagement remains healthy.” He said sales of both consumer and luxury beauty products grew mid-single digits year over year.
Fragrances were the strongest category in the quarter, posting double-digit sales growth year-over-year as shoppers bought luxury fragrances from Valentino and Dolce & Gabbana, as well as lower-priced fragrances such as Squishmallows perfume.
In October, Ulta added shelf space for fragrances in more than 60% of its U.S. stores in preparation for increased demand during the holiday season and beyond, Steelman said.
In skin care, the retailer’s second-fastest-growing category, sales grew in the low single digits year over year, he said. Shoppers bought products 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 fuel growth, Ulta is also expanding internationally and launched a third-party marketplace in October. In July, it announced that it had acquired British beauty retailer Space NK from Manzanita Capital. Space NK has 83 stores in the UK and Ireland, so this deal will allow Ulta to enter new international markets.
During the third quarter, Ulta opened seven stores in Mexico through a joint venture partnership with Grupo Bakso. Last month, the company opened its first Ulta store in the Middle East in Kuwait through a franchise partnership with Al Shabaab.
Through the marketplace, Ulta has added more than 120 brands and more than 3,500 unique products to its online inventory, Steelman said. He said the company is “pleased with early performance and optimistic about how this new feature will help strengthen existing categories, attract new guests, and capitalize on incremental growth opportunities in new subcategories such as wellness.”
The increased tariffs are also impacting the prices of some of Ulta’s products. Interim Chief Financial Officer Chris Riarios said brand-driven price increases were larger in the third quarter than in the second quarter.
Steelman said sales in the hair care category grew mid-single digits, even as sales of personal styling tools declined due to pressure from tariff-related price increases.
Ulta announced in October that Christopher Dell’Orefice, chief financial officer of medical technology company Becton Dickinson & Company, will become its new CFO. He is scheduled to assume the role on December 5th.
As of Thursday’s close, Ulta stock is up about 23% since the beginning of the year. This outpaces the S&P 500’s nearly 17% rise over the same period.
