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Ulta Magnificence on Thursday raised its full-year gross sales outlook after topping Wall Road’s fiscal third-quarter expectations and seeing customers splurge on perfumes, skincare gadgets and extra.
The sweetness retailer mentioned it now expects internet gross sales for the 12 months to be roughly $12.3 billion, larger than its earlier expectations of $12 billion to $12.1 billion. That will would signify a rise from final fiscal 12 months’s internet 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 at the very least 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 corporate’s inventory rose greater than 6% in prolonged buying and selling.
In a information launch, CEO Kecia Steelman mentioned “thrilling assortment newness, improved in-store and digital experiences, and daring advertising and marketing efforts are resonating with our company and drove robust gross sales outcomes.”
On the corporate’s earnings name, she mentioned that Ulta is “happy with our Black Friday and Cyber Monday efficiency” and prepared for the buying season — even one when shoppers could also be extra selective about spending.
“Our insights recommend magnificence shoppers’ budgets are tight and they’re centered on worth,” she mentioned. “Regardless of this, magnificence fans inform us that they spend intend to spend on magnificence for seasonal wants, reasonably priced splurges and presents for family members. They’re centered on replenishing their necessities and strategically making good purchases round robust worth.”
Here is what the retailer reported for the fiscal third quarter in contrast with what Wall Road anticipated, in line with LSEG:
- Earnings per share: $5.14 vs. $4.64 anticipated
- Income: $2.86 billion vs. $2.72 billion anticipated
Ulta has benefitted from customers who’ve saved spending on magnificence, at the same time as they trim the funds or hunt down lower-priced choices in different discretionary classes. But 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 TikTok Store.
Magnificence gross sales have been robust general this 12 months within the U.S., in line with information from market analysis agency Circana. Within the first 9 months of 2025, status magnificence gross sales by way of {dollars} rose 4% and mass magnificence gross sales rose 5% 12 months over 12 months.
In line with Circana, magnificence is poised to be a preferred class throughout the holidays, with the market researcher’s surveys indicating that extra shoppers plan to reward magnificence merchandise than a 12 months in the past, notably these in households with higher-incomes and people with youngsters.
Income rose from $2.53 billion within the year-ago quarter.
Comparable gross sales jumped by 6.3% 12 months over 12 months. Buyers visited Ulta’s shops and web sites extra and spent extra throughout visits. Common ticket rose 3.8% and transactions elevated by 2.4% 12 months over 12 months.
Within the three-month interval that ended Nov. 1, Ulta reported internet 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.
Although shopper confidence is weak, Steelman mentioned on Ulta’s earnings name that “magnificence engagement remained wholesome.” She mentioned gross sales of each mass and status magnificence gadgets grew by mid single-digits 12 months over 12 months.
Perfume was its strongest class within the quarter, with double-digit gross sales progress 12 months over 12 months, as customers 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 larger demand throughout 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. Buyers purchased gadgets they found on social media, together with Korean or Okay-beauty manufacturers and bought merchandise from Rihanna’s Fenty Pores and skin Physique 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 House NK, a British magnificence retailer, from Manzanita Capital. The deal permits Ulta to enter a brand new worldwide market, since House NK has 83 shops in the UK and Eire.
Through the third quarter, Ulta opened seven shops in Mexico by way of its three way partnership partnership with Grupo Bakso. It opened its first Ulta retailer within the Center East in Kuwait final month by way of a franchise partnership with Al-Shabaab.
By way of its market, Ulta has added greater than 120 manufacturers and over 3,500 distinctive gadgets to its on-line assortment, Steelman mentioned. She mentioned the corporate is “happy with the preliminary efficiency and optimistic about how this new functionality will help us strengthen our present class, entice new company, and capitalize on incremental progress alternatives in new subcategories,” comparable to wellness.
Increased tariffs have influenced a few of the costs of things carried by Ulta, too. The corporate noticed extra brand-driven worth will increase within the third quarter than the second quarter, interim Chief Monetary Officer Chris Lialios mentioned.
Gross sales within the haircare class grew by mid single-digits, regardless of a gross sales decline in private styling instruments which have felt stress from tariff-related worth will increase, Steelman mentioned.
Ulta introduced in October that Christopher DelOrefice, the chief monetary officer of medical know-how firm Becton Dickinson & Firm, will change into its new CFO. He’ll begin within the position on Dec. 5.
As of Thursday’s shut, Ulta’s shares have risen about 23% to date this 12 months. That surpasses the S&P 500’s practically 17% positive factors throughout the identical interval.
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