Ulta Beauty Surpasses Q3 Expectations With $2.9B in Sales, Driven by Fragrance Boom and International Expansion

Core Insights - Ulta Beauty exceeded Wall Street forecasts in Q3, reporting net sales of $2.9 billion, a 12.9% increase, driven by fragrance, K-beauty, and international expansion [1][2] - The company anticipates full-year 2025 net sales of approximately $12.3 billion, up from the previous estimate of $12 billion to $12.1 billion [2] Sales Performance - Net income for the third quarter was $230.9 million, down from $242.2 million year-over-year, while diluted earnings per share remained flat at $5.14, surpassing analysts' expectations of $4.61 [2] - Fragrance was the strongest growing category with double-digit comparable sales growth, supported by new brand launches [4] - Skin care achieved high-single-digit comparable sales growth, bolstered by K-beauty and an expanded wellness assortment [5] - Makeup saw midsingle-digit comparable sales growth, while hair care also rose by midsingle digits, although personal styling tools faced sales declines due to tariff-related pressures [6] Strategic Initiatives - The company is executing its "Ulta Beauty Unleashed Strategy," focusing on new product assortments, improved in-store and digital experiences, and bold marketing efforts [3] - Ulta initiated its first international expansion by opening seven stores in Mexico and a store in Kuwait through franchise partnerships [7]