Ulta Beauty (NASDAQ:ULTA) delivered third-quarter results that came in ahead of Wall Street expectations and lifted its full-year guidance, sending the stock more than 5% higher in Friday’s premarket session.
The beauty retailer reported Q3 earnings of $5.14 per share — flat from the prior year but comfortably above the analyst consensus of $4.52.
Revenue climbed 12.9% to $2.86 billion, topping forecasts of $2.7 billion, supported by stronger in-store traffic, increased customer spending, and the recent acquisition of Space NK. Comparable sales rose 6.3%, a sharp improvement from 0.6% a year ago. Ulta said the average ticket grew 3.8%, while transactions increased 2.4%.
Guggenheim analysts noted that Ulta’s “operating results meaningfully exceeded our expectations, driven by broad-based comp gains across channels.”
Gross margin expanded to 40.4% from 39.7%, helped by lower inventory shrink and improved merchandise margins.
“Our third quarter results exceeded our expectations, reflecting the steady progress and momentum our team is building as we execute our Ulta Beauty Unleashed Strategy,” president and CEO Kecia Steelman said. She pointed to new product offerings, enhanced digital engagement, and elevated marketing efforts as key contributors to the quarter’s performance, while also acknowledging continued consumer budget pressures heading into the holidays.
Ulta raised its fiscal 2026 revenue projection to $12.0 billion–$12.1 billion, up from its previous estimate of $12.0 billion. Its updated EPS outlook of $25.20 to $25.50 also came in ahead of market expectations of $24.54.
Inventory increased 16% to $2.7 billion, reflecting new brand rollouts, the addition of Space NK, and new store openings.