Ulta Beauty beat Wall Street forecasts on both the top and bottom lines in its third quarter, helped by fragrance, K-beauty and international expansion.

The Bolingbrook, Ill.-based retailer reported net sales increased 12.9 percent to $2.9 billion, primarily due to increased comparable sales, the acquisition of Space NK, and net new store contribution. Wall Street had penciled in $2.71 billion.

Net income was $230.9 million, compared to $242.2 million a year earlier, while diluted earnings per share were flat at $5.14, but above analysts’ estimates for $4.61.

As a result of a better than expected third quarter, Ulta is now anticipating net sales of about $12.3 billion for full-year 2025, up from its previous range of $12 billion to $12.1 billion.

“Our third-quarter results exceeded our expectations, reflecting the steady progress and momentum our team is building as we execute our Ulta Beauty Unleashed Strategy. Exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results, market share gains, and growth across all categories and channels, with notable strength in e-commerce,” said Kecia Steelman, president and chief executive officer.

Breaking down the sales numbers, fragrance remained Ulta’s strongest growing category, delivering double-digit comp sales growth in the third quarter, according to Steelman. Newness from brands like Valentino and Dolce & Gabbana, alongside new-to-market brand launches from Miu Miu in prestige and Squished Mallows in mass resonated with customers.

Skin care was its second-fastest growing category, delivering high-single-digit comp growth, helped by both mass and prestige and especially K-beauty. Its newly expanded wellness assortment also contributed positively to skin care performance.

Makeup delivered another quarter of midsingle-digit comparable sales growth, supported by growth in both mass and prestige makeup, while the hair care category rose by midsingle digits. This growth, however, was partially offset by sales declines in personal styling tools, which continue to navigate pressures from tariff-related price increases.

During the third quarter, Ulta embarked on its first international expansion, opening seven stores in Mexico through its joint venture partnership with Axo. In addition, the first Ulta Beauty store opened in the Middle East, in Kuwait last month, through its franchise partnership with Alshaya Group.

“We are encouraged by the strong, positive guest responses that we’re seeing and excited to expand our presence over time,” said Steelman.

In the U.K., following its acquisition of Space NK, the business continues to perform well, she added.

As for its new UB marketplace, which launched in October with more than 120 brands and over 3,500 stock keeping units, Steelman said she is “pleased with the initial performance and optimistic about how this new capability can help us strengthen our existing category, attract new guests, and capitalize on incremental growth opportunities in new subcategories like luxury, professional and wellness.”

Ulta’s stock price rose more than 6 percent in after-hours trading following the release of the earnings report. It had closed down 1.9 percent Thursday at $533.95.