Ulta Beauty says its bet on K-beauty is paying off

Core Insights - Ulta Beauty's expansion into the South Korean beauty market is yielding positive results, significantly boosting sales and attracting new customers [1][3] - The company's K-beauty product assortment is resonating well with consumers, particularly in skincare, leading to a notable increase in net sales and same-store sales [1][3] Sales Performance - Ulta Beauty reported third-quarter net sales of $2.9 billion, reflecting a 12.9% increase year-on-year [3] - Same-store sales rose by 6.3% compared to the previous year [3] - The company's stock price increased by nearly 6% in after-hours trading and has risen approximately 33% over the past year [4] Market Trends - The K-beauty industry in the US reached a valuation of $2 billion in the year leading up to July 2025, marking a 37% growth from the previous year [4] - The appeal of K-beauty products is attributed to their affordability and high-quality offerings, which attract a younger demographic [4][5] Strategic Initiatives - Ulta Beauty is actively expanding its K-beauty brand portfolio, including exclusive partnerships with brands like Medicube, TIRTIR, Fwee, and Unleashia [2] - The company aims to secure exclusive sales partnerships with K-beauty brands ahead of the anticipated entry of South Korean retailer Olive Young into the US market [5]