Shares of Ulta Beauty Inc. were up 11.39% in the pre-market session on Friday after the beauty products retailer released its third-quarter results, lifting retail sentiment.

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Ulta posted earnings per share (EPS) of $5.14, surpassing consensus estimates of $4.53; its net sales were $2.53 billion, up 1.7% from last year and slightly above analyst estimates of $2.5 billion.

Comparable sales increased slightly by 0.6% in the third quarter compared to the same period last year. Ulta said it opened 26 new stores in Q3. Net income came in at $242.2 million compared to $249.5 million in the comparable quarter.

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Retail sentiment on Stocktwits turned ‘extremely bullish’ (79/100) from ‘bearish’ (39/100) a day ago (as of 7:30 a.m. ET)

“The Ulta Beauty team delivered better-than-expected sales and profitability reflecting improved sales trends and strong financial discipline,” Dave Kimbell, CEO said in a statement. “As we look to the remainder of fiscal 2024, we are focused on executing with excellence across our key initiatives to deliver in a dynamic environment.”

According to its updated guidance for the full year, its net sales would likely be between $11.1 billion and $11.2 billion, with EPS pegged at $23.20 to $23.75.

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Operating margin is expected at 12.9% to 13.1%, with capital expenditures totaling $400 million to $425 million with the planned 60 to 65 new stores the company will open.

Bollingbrook, Ill.-based Ulta Beauty sells cosmetics, fragrance, skin care products, hair care products and salon services.

Ulta stock is down 19.26% year-to-date.

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