Ulta Magnificence on Thursday raised its full-year gross sales outlook after topping Wall Avenue’s fiscal third-quarter expectations and seeing buyers splurge on perfumes, skincare objects and extra.
The wonder retailer stated it now expects internet gross sales for the yr to be roughly $12.3 billion, greater than its earlier expectations of $12 billion to $12.1 billion. That will would characterize a rise from final fiscal yr’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 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 corporate’s inventory rose greater than 6% in prolonged buying and selling.
In a information launch, CEO Kecia Steelman stated “thrilling assortment newness, improved in-store and digital experiences, and daring advertising efforts are resonating with our friends and drove robust gross sales outcomes.”
On the corporate’s earnings name, she stated 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 counsel magnificence shoppers’ budgets are tight and they’re targeted on worth,” she stated. “Regardless of this, magnificence fanatics inform us that they spend intend to spend on magnificence for seasonal wants, reasonably priced splurges and presents for family members. They’re targeted 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 Avenue anticipated, in keeping with LSEG:
- Earnings per share: $5.14 vs. $4.64 anticipated
- Income: $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. 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 yr within the U.S., in keeping with knowledge from market analysis agency Circana. Within the first 9 months of 2025, status magnificence gross sales when it comes to {dollars} rose 4% and mass magnificence gross sales rose 5% yr over yr.
In accordance 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 present magnificence merchandise than a yr in the past, significantly 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% yr over yr. Customers visited Ulta’s shops and web sites extra and spent extra throughout visits. Common ticket rose 3.8% and transactions elevated by 2.4% yr over yr.
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 stated on Ulta’s earnings name that “magnificence engagement remained wholesome.” She stated gross sales of each mass and status magnificence objects grew by mid single-digits yr over yr.
Perfume was its strongest class within the quarter, with double-digit gross sales progress yr over yr, as buyers purchased luxurious scents from Valentino and Dolce & Gabbana and likewise lower-priced scents like Squishmallows perfumes.
Steelman stated that in October, Ulta added extra shelf area for perfume in additional than 60% of its U.S. shops to attempt to prepare for greater demand throughout the holidays and past.
In skincare, the retailer’s second-fastest rising class, gross sales grew by excessive single digits yr over yr, she stated. Customers purchased objects they found on social media, together with Korean or Ok-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 means of its market, Ulta has added greater than 120 manufacturers and over 3,500 distinctive objects to its on-line assortment, Steelman stated. She stated the corporate is “happy with the preliminary efficiency and optimistic about how this new functionality can assist us strengthen our present class, entice new friends, and capitalize on incremental progress alternatives in new subcategories,” similar to wellness.
Increased tariffs have influenced a number of the costs of things carried by Ulta, too. The corporate noticed extra brand-driven value will increase within the third quarter than the second quarter, interim Chief Monetary Officer Chris Lialios stated.
Gross 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 stated.
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% up to now this yr. That surpasses the S&P 500’s practically 17% positive aspects throughout the identical interval.
