Core Insights - Ulta Beauty reported strong third-quarter results, with significant growth in digital engagement and eCommerce, alongside a 4% increase in loyalty membership to a record high [1][3] Digital Performance - Digital performance was a key driver of Q3 growth, with a faster app, new checkout features, and expanded ship-from-store coverage contributing to this success [3] - App penetration reached 65% of online member sales, up from 63% in the previous quarter, following the introduction of new features [3] - AI-driven personalization enhanced recommendations and promotions across digital channels, further boosting eCommerce growth [6] Financial Performance - Net sales increased by 12.9% to $2.9 billion, with comparable sales rising 6.3% due to a 3.8% increase in ticket size and a 2.4% increase in transactions [7] - Gross margin improved to 40.4%, supported by lower shrink and higher merchandise margins, while SG&A expenses rose 23.3% to $841 million [7] Loyalty and Customer Engagement - Loyalty membership grew by 4% year-over-year to 46.3 million members, enhancing the effectiveness of targeted offers [9] - Engagement metrics showed improvement, including brand engagement and app interaction, indicating a successful collective strategy [3] Market Expansion and Strategy - Ulta expanded its digital assortment through UB Marketplace, adding over 120 brands and more than 3,500 SKUs, which is part of a long-term growth strategy [5] - The company is also making international progress with new stores in Mexico and Kuwait, and continued strength at Space NK in the UK [5] Holiday Performance - Early holiday shopping results were positive, with strong performances during Black Friday and Cyber Monday, indicating steady demand [5]