Ulta Beauty beat estimates for earnings per share and sales last quarter, and has raised its full-year outlook.
Diluted earnings per share rose by US$0.23 to $6.70 year-over-year, surging past FactSet estimates of $5.80. Net sales were up 4.5% to $2.85 billion, above estimates of $2.79 billion.
“Fiscal 2025 is off to an encouraging start with a stronger-than-expected performance. Our Ulta Beauty Unleashed plan is resonating with guests, energizing our team, and fueling growth,” said Ulta CEO Kecia Steelman.
Gross profit was US$1.11 billion, growing by 4.2%. The company’s gross profit represented 39.1% of net sales, declining from 39.2% one year ago, which it said was due to deleveraging store and supply chain costs.
Operating income was US$401.9 million. This is 14.1% of net sales, down from 14.7% a year ago.
Comparable sales, which include e-commerce sales and sales at stores open for at least 14 months, rose 2.9% year-over-year. The company credited this to a 2.3% increase in the average amount spent per transaction.
Ulta saw six net new store openings last quarter, compared with 10 in Q1 2024.
Despite recent studies indicating non-essential spending may decline in the U.S. this year, Ulta lifted its full-year outlook to project net sales of US$11.5-11.7 billion, compared with the previous $11.5-11.6 billion. It predicts diluted earnings per share of $22.65-23.20, up from $22.50-22.90.
“The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve,” said Steelman. “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.”
Ulta’s share price closed at US$421.79, and jumped to $456.50 in after-hours trading following the earnings release. Its market capitalisation is $19.04 billion.
