Sales declines slowed significantly in Ulta’s fiscal 2020 third quarter as consumers returned to physical stores and e-commerce gains continued, albeit at a moderated clip. But surging infections around the US and tightening government restrictions have the retailer cautious about fourth-quarter projections.

The retailer is growing its skin- and hair-care assortments to meet strong demand and highlighting “clean” with the coming launch of its Conscious Beauty certification program. Sales will remain challenged for the remainder of fiscal 2020, but longer-term prospects are optimistic, Ulta leadership said during the firm’s second-quarter earnings call.

CEO Mary Dillon noted during Ulta’s fiscal 2019 year-end call the rise of “clean beauty” at a time of growing interest in cosmetic ingredient safety. The retailer aims to provide its customers in 2020 with “a framework to help them evaluate products based on what's most important to them.”