Ulta Beauty has raised its full-year sales outlook following a better-than-expected fiscal third quarter.
The beauty retailer reported a 12.9% increase in revenue year-over-year to US$2.9 billion, surpassing expectations of US$2.72 billion.
The company said this is mainly due to increased comparable sales, the acquisition of Space NK and net new store contribution.
Earnings per share remained even with last year’s results at US$5.14, but beat Wall Street expectations of US$4.64.
“Exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results, market share gains, and growth across all categories and channels, with notable strength in ecommerce,” Ulta Beauty president and CEO, Kecia Steelman, said.
Following positive results, Ulta has raised its guidance for fiscal 2025.
The company now expects net income of around US$12.3 billion, an upgrade from the previously forecasted US$12 to US$12.1 billion.
The outlook for diluted earnings per share has also jumped from between US$23.85 and US$24.30 to between US$25.20 and US$25.50.
According to Circana research, beauty sales in the U.S. have been strong this year, with prestige beauty sales in terms of dollars growing 4% and mass beauty sales rising 5% in the first 9 months of 2025.
The research also found that beauty is likely to be a popular category during the holiday season.
At Thursday's close, Ulta Beauty (NASDAQ: ULTA) shares fell 1.94% to US$533.95, but jumped 7% to $571.50 in after-hours deals.
