Ulta Beauty reports better-than-expected Q1, warns of consumer uncertainty
Ulta Beauty is off to a strong start in its current fiscal year, with earnings that came in way ahead of Street estimates.
The beauty giant slightly lifted its full-year guidance, but it warned that while the beauty category has historically been resilient through economic downturns, it has not been immune to consumer pressure.
“The operating environment continues to be very dynamic, and the evolving global trade landscape has created more uncertainty related to consumer wallet pressures, especially for the second half of the year,” stated Ulta CFO Paula Oyibo.
Ulta reported net income of $305.1 million, or earnings per share of $6.70, for the quarter ended May 3, compared to $313.1 million, or earnings per share of $6.47, in the year-ago period. Analysts had expected earnings per share of $5.81.
Net sales role 4.5% to $2.8 billion, ahead of estimates for $2.7 billion. Comparable sales were up 2.9%, driven by a 2.3% increase in average ticket and a 0.6% increase in transactions.
Fragrance was the strongest-performing category during the quarter, with double-digit growth primarily driven by newness and women’s and gender-neutral fragrance brands.
“Fiscal 2025 is off to an encouraging start with stronger-than-expected performance,” said Kecia Steelman, who took the reins as CEO in January. “We believe our model uniquely positions us to win, and we will continue to focus on serving our guests while staying agile as we move through the year."
The company slightly lifted it full-year forecast for net sales, which it now expects to fall between $11.5 billion to $11.7 billion, compared with its previous forecast of $11.5 billion to $11.6 billion. Same-store sales growth is expected be flat to 1.5%, compared to its prior forecast of flat to 1%. Ulta expects earnings per share of $22.65 to $23.20, compared to its previous outlook of $22.50 to $22.90.
At the end of the first quarter of fiscal 2025, Ulta operated 1,451 stores.
