Ulta Beauty lifts annual forecasts as marketing, product investments fuel growth

"Ulta's strong quarter is a testament to the work the company has done to establish itself as shoppers' preferred beauty retailer, despite growing competition from the likes of Amazon and TikTok," eMarketer analyst Rachel Wolff said.

"Shaky consumer confidence may even be working in Ulta Beauty's favor by reinforcing the 'lipstick effect' – the tendency for consumers to continue spending on smaller, affordable luxuries like beauty products," research firm Placer.ai said.

The company expects full-year sales to grow between 6.7% and 7.2%, up from its prior forecast of 6% to 7%.

Ulta expects annual earnings per share in the range of $28.70 to $29, compared with its prior forecast of $28.36 to $28.80 per share.

The company's quarterly sales of $3.04 billion beat analysts' average estimate of $2.96 billion, according to data compiled by LSEG.