Ulta Beauty delivered a standout third-quarter performance, reporting a 6.4% year-over-year increase in comparable sales—its strongest print since mid-2023. This acceleration was driven primarily by a 9% comp gain in fragrances, propelled by expanded assortments and promotional cadence, alongside a 7% lift in prestige skin care. Store traffic improved sequentially, supported by targeted marketing campaigns and refreshed loyalty-program incentives, which helped offset softer foot traffic in mall-based locations.

Building on robust Q3 results, Ulta Beauty raised its fiscal 2025 outlook, now anticipating revenue growth in the 11%–12% range and adjusted operating margin near 12.5%. The company cited stronger-than-expected holiday pre-book trends, resilient consumer demand for premium beauty, and early traction from its new private-label product launches. Management reiterated plans for 80 net new store openings next year, while forecasting incremental EBIT contribution from its expanded distribution center network and omnichannel fulfillment enhancements.

In November, Ulta Beauty launched UB Marketplace, enabling third-party beauty brands to sell through its e-commerce platform. Initial partners include five emerging skincare and hair-care labels, with plans to onboard 20 additional vendors by mid-2026. The marketplace is engineered to deepen assortment, enhance customer personalization and drive incremental digital revenue. Concurrently, the retailer invested $50 million in its mobile app this quarter, introducing AI-powered shade-matching tools and streamlined checkout flows to boost conversion rates and average basket size.