Ulta Beauty delivered another standout quarter as consumers continued to prioritise fragrances, skincare and cosmetics, driving results well ahead of Wall Street expectations and prompting the retailer to lift its full-year outlook for the second time this year.
For the quarter ended Nov. 1, Ulta reported net income of $230.9 million, or $5.14 per share, compared with $242.2 million (also $5.14 per share) a year ago.
Analysts had projected earnings of $4.61 per share. Net sales rose 12.9% to $2.9 billion, beating forecasts of $2.71 billion, supported by higher comparable sales, the acquisition of Space NK and contribution from new stores.
Ulta acquired British beauty retailer Space NK in June; the business operates 83 stores across the U.K. and Ireland and continues to run as an independent subsidiary.
Comparable sales increased 6.3%, driven by a 3.8% rise in average ticket and a 2.4% increase in transactions. Fragrance remained Ulta’s fastest-growing category with double-digit comp growth, followed by skincare.
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“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,” CEO Kecia Steelman said.
She added that “beauty engagement remained healthy,” but noted that consumers are seeking value heading into the holiday season.
The company continued its international expansion in Q3, opening seven stores in Mexico in partnership with Grupo Bakso and debuting its first Middle East location in Kuwait through a franchise agreement with Alshaya Group.
Ulta now expects full-year sales of roughly $12.3 billion, up from prior guidance of $12.0 billion to $12.1 billion, and earnings per share of $25.20 to $25.50, up from $23.85 to $24.30.
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