Ulta Beauty on Thursday beat Wall Street’s expectations for the fiscal third quarter, fending off fears of tougher competition and slowing demand for makeup and skin care.

The retailer slightly raised its full-year outlook to reflect better-than-expected results. For the fiscal year, the company now expects net sales of $11.1 billion to $11.2 billion, compared to its previous forecast of $11 billion to $11.2 billion.

The company now expects full-year profit of $23.20 to $23.75 $22.60 to $23.50.

In a press release, CEO Dave Kimbell said he was “proud of the progress” the company has made and “encouraged by early signs that our efforts to strengthen our market position and drive improved performance are gaining momentum.”

Here’s what the cosmetics retailer reported for the three-month period ended Nov. 2 compared to Wall Street’s expectations, based on an analyst survey by LSEG:

• Earnings per share: $5.14 versus expected $4.54
• Revenue: $2.53 billion versus expected $2.50 billion

Ulta shares rose about 10% in after-hours trading.

Beauty has been a strong category for many retailers, holding up in recent years even as inflation stretched families’ budgets and many shoppers pulled back on discretionary purchases. The resilience of the category has led to companies including Goal, Walmart, Kohl’s And Macy’sto expand their makeup and skin care offerings.

Still, Ulta began hinting at potential problems in April, when Kimbell warned of slowing demand for beauty products at an investor conference.

In recent quarters, Ulta’s results reflected sophisticated shoppers and increased competition. The company missed earnings results and lowered its full-year outlook in August after same-store sales fell. It was the first time in about four years that the retailer missed Wall Street’s expectations.

The company’s shares have also fallen. As of Thursday’s close, Ulta shares are down about 19% so far this year, lagging the S&P 500’s roughly 28% gains over the same period.

For the fiscal third quarter, the retailer reported net income of $242.2 million, or $5.14 per share, compared with $249.5 million, or $5.07 per share, in the year-ago quarter.

Sales rose from $2.49 billion in the same period last year.

Comparable sales, a measure that tracks sales at Ulta stores open at least 14 months along with online sales, rose 0.6% year-over-year as the retailer reported a slight increase in foot traffic and sales average ticket price recorded.

Customer transactions on the website and in-store increased 0.5% year over year and average ticket amount, the amount shoppers spend during those visits, increased 0.1% year over year.

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