^{An Ulta Beauty store in Concord, California, US, on Wednesday, Dec. 3, 2025.}

^{David Paul Morris | Bloomberg | Getty Images}

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Strong Third-Quarter Performance Drives Investor Optimism

Ulta Beauty’s stock jumped after the company reported third-quarter results that exceeded Wall Street forecasts and lifted its full-year outlook for both revenue and profits for the second consecutive quarter. The beauty retailer benefited from robust demand across fragrances, skincare, and prestige products, even as consumers remain selective with discretionary spending in other categories.

Ulta now expects full-year net sales of approximately $12.3 billion, up from its prior projection of $12 billion to $12.1 billion, marking an increase from $11.3 billion in fiscal 2024. The company also raised its earnings-per-share guidance to a range of $25.20 to $25.50, up from $23.85 to $24.30 previously. Comparable sales, which measure sales at stores open at least 14 months plus e-commerce, are forecast to grow 4.4% to 4.7%, higher than the earlier range of 2.5% to 3.5%.

Quarterly Highlights and Consumer Trends

For the third quarter, Ulta reported revenue of $2.86 billion, surpassing analyst expectations of $2.72 billion, and earnings per share of $5.14 versus the forecast of $4.64. Net income totaled $230.9 million, slightly below last year’s $242.2 million, but the company highlighted stronger consumer engagement and higher average transaction values.

Fragrance was the standout category, posting double-digit growth as shoppers purchased high-end scents from brands such as Valentino and Dolce & Gabbana alongside more affordable options. Skincare sales, Ulta’s second-fastest-growing category, rose in the high single digits, fueled by social media-driven trends and new launches including Rihanna’s Fenty Skin Body collection. Haircare sales increased by mid single-digits despite pressure on personal styling tools from tariff-related price hikes.

CEO Kecia Steelman credited “exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts” for driving sales growth. She emphasized that holiday shopping remained strong, with Black Friday and Cyber Monday delivering robust results despite broader economic caution.

Expansion and New Initiatives

Ulta is also pursuing aggressive growth beyond its U.S. base. In July, the company acquired British beauty retailer Space NK, gaining 83 stores across the United Kingdom and Ireland. In Mexico, Ulta opened seven stores through a joint venture with Grupo Bakso and launched its first Middle East location in Kuwait through a franchise partnership.

The company’s third-party marketplace, launched in October, now features more than 120 brands and 3,500 unique items. Ulta aims to leverage this platform to strengthen existing categories, attract new customers, and explore incremental growth in wellness and other subcategories.

Investor Confidence and Market Outlook

Ulta’s shares have risen roughly 23% year-to-date, outperforming the S&P 500’s nearly 17% gain over the same period. The company’s ability to maintain strong sales growth, expand internationally, and adapt to changing consumer preferences reinforces its position in the competitive beauty retail market, where it faces rivals ranging from big-box retailers and online platforms to emerging social-commerce channels.

Interim CFO Chris Lialios noted that brand-driven price increases contributed to some growth, while the company continues to navigate tariffs affecting product categories like personal styling tools. Ulta announced that Christopher DelOrefice will assume the CFO role starting December 5, signaling continuity in financial leadership as the company enters the critical holiday season.

With consumer engagement remaining strong, Ulta is poised to capitalize on the ongoing holiday shopping period, combining in-store experiences, digital innovation, and international expansion to drive continued growth.