What: After beating Wall Street estimates on the top and bottom lines in the third quarter, the beauty retailer has once again increased its full-year outlook.

Why it is important: Despite inflation, customers don’t appear to be deterred from making beauty purchases at higher prices leading Ulta to beat its Q3 estimates, ultimately raising its 2023 outlook.

Net sales rose 17.2% to USD 2.3 billion in the 13 weeks ended Oct. 29, primarily due to the favourable impact from the continued resilience of the beauty category, retail price increases, and the impact of new brands and product innovation. Cosmetics sales rose 44%, hair care 21%, skin care 16%, fragrance and bath 12%, services 4% and accessories 3%.

Net sales are now forecast to come in at between USD 9.95 billion and USD 10 billion. Diluted EPS are expected to be USD 22.60 to 22.90, compared with prior guidance of USD 20.70 to 21.20.

Ulta beats Q3 estimates and raises full-year forecast