BOLLINGBROOK, Ill. — Ulta Beauty Inc. posted financial results for its third quarter that exceeded expectations for revenue and earnings. The nation’s largest beauty retailer updated its forecast for profit and sales for the second straight quarter to reflect leadership’s confidence in the willingness of customers to continue spending on beauty even as the skimp on other discretionary purchases.
“Our third quarter results exceeded our expectations, reflecting the steady progress and momentum our team is building as we execute our Ulta Beauty Unleashed strategy [focused on wellness expansion, digital innovation, and hosting in-store events],” said CEO Kecia Steelman.
“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 e-commerce,” Steelman said.
Net sales increased 12.9% in the quarter to November 1, primarily on an increase in comparable sales, the acquisition of Space NK, and contributions from newly opened stores.
Comparable sales rose 6.3% year over year. Average ticket rose 3.8% and transactions increased by 2.4% year over year as shoppers visited Ulta’s stores and websites more and spent more per visit.
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Ulta Beauty said it opened 28 new stores, remodeled 15 stores, and closed one store in the quarter. Through the first nine months of its fiscal 2025, the retailer had opened 58 new stores, relocated four stores, remodeled 24 stores, and closed three stores.
The company ended the third quarter with 1,500 Ulta Beauty stores totaling 15.6 million square feet across the U.S., excluding the 84 stores in the U.K. and Ireland operated by Space NK, a London-based beauty retailer renowned for popularizing curated collections of niche brands through 83 gallery-style stores. Space NK operates as a standalone subsidiary of Ulta Beauty.
Ulta Beauty during the quarter opened its first international stores, in Mexico, in a joint venture with Grupo Axo, a retailer of apparel, footwear, fashion accessories, cosmetics, and personal care items with outlets across Mexico, Chile, Peru and Uruguay.
It also introduced a third-party marketplace to expand the mix of merchandise the chain carries without needing more store shelf space or having to buy more of its own inventory.
The company said it now expects net sales for the year to be approximately $12.3 billion, up from its earlier projection of $12 billion to $12.1 billion. It expects earnings per share of $25.20 to $25.50, up from its prior expectations of $23.85 to $24.30. Ulta Beauty anticipates comparable sales to rise by 4.4% to 4.7%, up from earlier forecast of a gain of between 2.5% and 3.5%.
“As we look ahead to the all-important holiday season, we know many consumers’ wallets are pressured and they are seeking value,” Steelman said. “We are confident in our plans, and our teams are ready to make Holiday Happen Here at Ulta Beauty, driving excitement and delivering for our guests and their loved ones, now and into the new year.”
