The company now expects comparable sales to be up as much as 4.7 percent in the current fiscal year. Ulta guided in August for that figure to be up as much as 3.5 percent. It also raised its outlook for net sales and earnings per share. 

The results are the latest sign that US demand for cosmetics is weathering economic uncertainty and deteriorating consumer sentiment as a post-pandemic boom in beauty products persists.

The stock jumped 4.9 percent at 4:25 p.m. in extended trading in New York on Thursday. It has advanced 23 percent this year through Thursday’s close.

Shoppers have held on to the more elaborate skincare routines they developed during lockdowns and mobility restrictions. Fragrances, and newer trends to layer them to create new scents, are also staying popular. 

Ulta chief executive officer Kecia Steelman has seized on the moment by building out Ulta’s popular loyalty program, launching an online marketplace and expanding internationally. 

The retailer opened its first store in the Middle East, in Kuwait, in November and has plans to open locations in the United Arab Emirates and Saudi Arabia in the coming months.

Net sales rose 13 percent in the most recent quarter, boosted by greater demand for cosmetics as well as Ulta’s acquisition of Space NK, a beauty retailer in the UK and Ireland. Ulta reported market-share gains and “notable strength” in online sales in the most recent quarter, which ended on Nov. 1.

While results outpaced expectations, Steelman cautioned on Thursday that consumers remain watchful. “As we look ahead to the all-important holiday season, we know many consumers’ wallets are pressured and they are seeking value,” she said in a statement. 

While fragrances are often more expensive, relatively lower prices for many cosmetics means those items are still within shoppers’ budgets — which has helped to buoy Ulta’s growth. 

By Jeannette Neumann

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Ulta Beauty Expands to Kuwait

The American retailer is continuing its global rollout with its first store in the Middle East on Nov. 7, featuring luxury brands like Augustinus Bader and Tom Ford Beauty.