Investing.com -- Ulta Beauty reported quarterly results that beat Wall Street expectations and raised its full-year outlook, sending its shares up 5% in extended trading.

The beauty retailer posted Q3 earnings of $5.14 per share, unchanged from a year earlier but ahead of analysts’ estimate of $4.52.

Revenue rose 12.9% to $2.86 billion, above expectations of $2.7 billion, helped by stronger store traffic, higher average spending and the acquisition of Space NK.

Comparable sales increased 6.3% compared with 0.6% a year earlier. The company said average ticket rose 3.8% and transactions rose 2.4%.

Gross margin improved to 40.4% from 39.7% due to lower inventory shrink and higher merchandise margins.

“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,” president and CEO Kecia Steelman said in the release.

She said new product assortments, stronger digital experiences and marketing efforts drove sales gains and noted continued pressure on consumer budgets heading into the holiday season.

The company raised its 2026 revenue forecast to a range of $12 billion to $12.1 billion from a prior $12 billion estimate. Guide of 2026 EPS of $25.20 to $25.50 is also above market expectations of $24.54.

Inventory rose 16% to $2.7 billion, driven by new brand launches, the Space NK acquisition and new stores.

The company opened 28 stores in the quarter and repurchased $224.7 million of shares. Ulta now operates 1,500 U.S. stores, excluding 84 Space NK locations in the U.K. and Ireland.