After a slew of weaker than expected results from the sweetness sector, Ulta bucked the trend, raising its full-year outlook on the back of a powerful second quarter.

“Through the quarter, we drove growth across all major categories, increased the variety of loyalty members, and strengthened engagement with the Ulta Beauty brand,” said Dave Kimbell, chief executive officer. “The wonder category has continued to deliver healthy growth, as consumers maintain their post-pandemic routines and expand their definition of beauty.” 

The wonder retailer now expects net sales to are available in at a spread between $11.05 billion and $11.15 billion. Previously it had forecast $11 billion to $11.1 billion. Estimates for diluted earnings per share have been lifted to $25.10 to $25.60, from $24.70 to $25.40.

Net sales increased 10.1 percent to $2.5 billion in its second quarter ended July 29, in comparison with $2.3 billion a 12 months earlier. This was consistent with Wall Street forecasts.

Net income rose to $300.1 million in comparison with $295.7 million, while diluted earnings per share increased 5.6 percent to $6.02 in comparison with $5.70.  Analysts had estimated $5.91 per share.

Skincare continued to be certainly one of its strongest categories, with each prestige and mass components delivering double-digit growth. 

Makeup delivered low single-digit growth, driven by strong performance in mass cosmetics, although prestige makeup was challenged because it lapped the numerous impact of the Fenty launch last 12 months.

In recent months, Ulta has made a dedicated push into luxury, adding brands corresponding to Dior, Chanel, Hourglass and shortly Pat McGrath Labs into around 200 stores. Kimbell declined to reveal its performance in numbers during a call with analysts, but stressed that it’s a vital a part of overall strategy. “We all know there’s growth in the luxurious side of the business,” he said.

As for inventory shrink — the difference between a balance-sheet inventory and actual stock that is usually blamed on organized retail crime, Ulta noted that it increased throughout the quarter. But Kecia Steelman, chief operating officer, added she is already seeing progress as Ulta moves to lock up fragrance in cabinets in 70 percent of stores by the top of the 12 months.

“What we’re seeing is within the initial stores that we rolled out the locked fragrance cases for, we actually saw sales improvement because we were in stock with the product,” she said.