Ulta Beauty Raises Sales Forecast After Strong Third Quarter

CONCORD, California – Ulta Beauty raised its full-year sales outlook on Thursday after surpassing Wall Street expectations for the fiscal third quarter. The beauty retailer now expects net sales for 2025 to be approximately $12.3 billion, an increase from its earlier forecast of $12 billion to $12.1 billion and up from last year’s net sales of $11.3 billion.

In its earnings report, Ulta also projected earnings per share between $25.20 and $25.50, a notable rise from previous expectations of $23.85 to $24.30. Comparable sales, which include sales from stores open for at least 14 months and e-commerce, are expected to increase by 4.4% to 4.7%, significantly higher than the prior outlook of 2.5% to 3.5%. Following the announcement, Ulta’s stock rose more than 4% in after-hours trading.

CEO Kecia Steelman commented, “Exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results.” She expressed confidence as the retailer prepares for the holiday season, acknowledging that many consumers are budget-conscious and looking for value.

Shoppers have continued to invest in beauty products, a trend noted despite tighter budgets in other discretionary spending categories. Ulta faces increased competition from large retailers like Walmart, online marketplaces such as Amazon, and emerging platforms like TikTok Shop. According to Circana, a market research firm, beauty sales have experienced a strong performance in the U.S. this year, with prestige beauty up 4% and mass beauty up 5% year-over-year in the first nine months of 2025.

Surveys by Circana reveal that beauty products are expected to be popular gifts this holiday season, particularly among higher-income households and those with children. For the fiscal third quarter, Ulta reported revenue of $2.53 billion, up from the same quarter last year. Comparable sales increased by 6.3%, as shoppers engaged more with Ulta’s stores and websites, spending more during their visits.

Ulta’s net income for the three-month period ending Nov. 1 was $230.9 million, or $5.14 per share, slightly down from $242.2 million, also at $5.14 per share, in the same quarter last year. As of Thursday’s market close, Ulta’s shares have increased about 23% in 2025, outpacing the nearly 17% gains of the S&P 500 during the same time.

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