Ulta Beauty’s K-Beauty Strategy Fuels $2.9B Sales Surge

UPDATE: Ulta Beauty’s aggressive expansion into K-beauty is driving significant sales growth, with the company reporting $2.9 billion in net sales for the third quarter—an impressive 12.9% increase compared to last year. CEO Kecia Steelman announced these developments during a Thursday earnings call, confirming that the K-beauty trend is attracting a new generation of customers.

Steelman highlighted that Ulta’s exclusive partnerships with popular K-beauty brands such as Medicube and Peach & Lily are pivotal in this success. The company has strategically expanded its K-beauty portfolio throughout 2025, introducing new brands like TIRTIR, Fwee, and Unleashia, all of which resonate with consumers and boost skincare sales.

In her remarks, Steelman noted, “We saw space for growing K-beauty trends in both skincare and makeup. We moved with agility to build a complementary and largely exclusive pipeline.” This expansion is essential as K-beauty is rapidly gaining traction in the U.S., with market research firm NielsenIQ estimating it as a $2 billion industry—a stunning 37% growth from the previous year.

During this earnings report, Ulta also revealed that same-store sales increased by 6.3% year-on-year, signaling robust customer engagement. Following the announcement, Ulta’s stock surged nearly 6% in after-hours trading, reflecting investor confidence. The company’s stock has risen approximately 33% over the past year.

In addition to exclusive partnerships, Ulta is benefiting from the viral popularity of certain K-beauty products, such as Starface, known for its whimsical pimple patches. Steelman remarked that these products have gained traction due to their unique designs and social media buzz, effectively capturing the attention of younger consumers.

As competition heats up, Ulta and rivals like Sephora are racing to secure exclusive deals with K-beauty brands before the anticipated U.S. launch of Olive Young, a leading South Korean beauty retailer. This impending competition underscores the urgent need for retailers to adapt swiftly to consumer preferences.

The K-beauty trend is making a profound impact on the beauty retail landscape in the United States, as brands continue to attract consumers looking for high-quality products at affordable prices. Anna Keller, a principal analyst at Mintel, emphasized the appeal of K-beauty: “They’re super affordable, so you’re getting high-quality, effective products without breaking the bank.”

As Ulta Beauty positions itself for future growth, the company’s focus on K-beauty is more than just a trend; it is a strategic move that aligns with shifting consumer preferences and market dynamics. The beauty retail sector is on high alert as these developments unfold, making it crucial for stakeholders to monitor Ulta’s next steps in this evolving marketplace.

Stay tuned for more updates on Ulta Beauty’s ongoing success and the broader implications for the K-beauty industry in the U.S.