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Ulta Beauty Lifts Full-Year Outlook After Q3 Beat as Shares Climb

Stronger demand across beauty categories prompted a second guidance upgrade.

Overview

  • The company now targets roughly $12.3 billion in full-year net sales and earnings of $25.20 to $25.50 per share, marking a second consecutive raise.
  • Fiscal third-quarter results topped estimates with EPS of $5.14 and revenue of $2.86 billion versus LSEG expectations of $4.64 and $2.72 billion.
  • Comparable-sales growth for the year is now guided to 4.4% to 4.7%, up from 2.5% to 3.5%, with margins supported by lower e-commerce shipping costs and reduced inventory shrink.
  • Management credits new product assortments, enhanced store and digital experiences, and assertive marketing, with Circana data showing U.S. prestige beauty up 4% and mass beauty up 5% year to date.
  • Shares rose more than 4% in after-hours trading and are up about 23% this year, as incoming CFO Christopher DelOrefice begins Dec. 5.