Prime Highlight
- Ulta Beauty lifted its full-year sales and earnings outlook for the second straight quarter, signaling strong momentum heading into year-end.
- Strong demand for fragrances, skincare, and new product launches helped the retailer outperform Wall Street expectations.
Key Facts
- Q3 revenue reached $2.86 billion, beating analyst estimates of $2.72 billion, while EPS came in at $5.14.
- Ulta now expects $12.3 billion in annual net sales and 4.4%–4.7% comparable sales growth, both higher than earlier forecasts.
Background
Ulta Beauty’s shares rose sharply on Thursday after the retailer lifted its full-year sales and earnings outlook for the second quarter in a row and reported stronger-than-expected third-quarter results. The company said steady demand for perfumes, skincare, and other beauty items helped it beat Wall Street forecasts.
Ulta now expects annual net sales to reach around $12.3 billion, higher than its previous range of $12 billion to $12.1 billion. It also raised its earnings-per-share outlook to between $25.20 and $25.50. The retailer now expects comparable sales to grow by 4.4% to 4.7%, higher than its earlier forecast of 2.5% to 3.5%.
For the third quarter, revenue climbed to $2.86 billion, compared with $2.53 billion in the same period last year. The figure exceeded analyst expectations of $2.72 billion. Earnings per share came in at $5.14, also beating estimates.
CEO Kecia Steelman said new product launches, stronger store and digital experiences, and bold marketing efforts helped drive demand. She noted that beauty shoppers remain willing to spend on essentials and affordable indulgences, even as they stay cautious in other categories.
Fragrance was Ulta’s strongest category, posting double-digit growth. The retailer added more shelf space for scents in most U.S. stores ahead of holiday demand. Skincare sales rose by high single digits, boosted by trends like K-beauty and new products such as Rihanna’s Fenty Skin Body line.
Ulta is also expanding globally. The company opened seven stores in Mexico and launched its first Middle East location in Kuwait. It continues to build its new online marketplace, adding more than 120 brands and 3,500 products since October.
Despite rising competition from Walmart, Amazon, and TikTok Shop, Ulta said beauty engagement remains healthy. The company’s share price has climbed nearly 23% so far this year, exceeding the S&P 500’s gains.