Key Stats for Ulta Beauty Stock
- Today’s Price Change: 12%
- Current Share Price: $471
- 52-Week High: $491
- ULTA Stock Price Target: $429
What Happened?
Ulta Beauty (ULTA) stock surged nearly 12% on Friday, following the cosmetics retailer’s strong first-quarter earnings results and its raised full-year profit guidance. Ulta reported adjusted earnings of $6.70 per share, beating analyst estimates of $5.83 per share, while revenue of $2.85 billion exceeded expectations of $2.79 billion.
The beauty retail giant demonstrated strong operational execution under its “Ulta Beauty Unleash Plan,” with comparable sales growing 2.9%, driven by a 2.3% increase in average ticket and a 0.6% rise in transactions.
This marked the first time in over a year that Ulta achieved positive comparable sales growth in stores, reflecting improved in-store execution, better inventory management, and enhanced marketing strategies.
CEO Kecia Steelman highlighted several key drivers of performance, including successful new brand launches such as Beyoncé’s Cécred haircare line, Milk Makeup, and K-Beauty brands like Anua.
The company also benefited from lower inventory losses, improved in-stock levels, and the strong execution of promotional events, such as the 21 Days of Beauty campaign, which drove higher member engagement and traffic.
Based on the strong quarterly performance, Ulta raised its annual profit forecast to $22.65-$23.20 per share from the previous range of $22.50-$22.90 per share.
However, it maintained a cautious outlook for the remainder of the year, citing uncertainty around consumer demand and the evolving tariff environment.
See Ulta Beauty’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
What the Market Is Telling Us
The positive reaction to ULTA stock reflects investor relief that its turnaround efforts are showing tangible results after several quarters of challenging performance.
Ulta’s ability to drive market share gains in a competitive beauty landscape while improving key operational metrics demonstrates the effectiveness of its strategic initiatives under new leadership.
Investors appear encouraged by the balanced growth across categories, with fragrance delivering double-digit growth and strong performance in skin care and wellness offsetting modest declines in makeup.
The expansion of Ulta’s active loyalty member base to a record 45 million members, up 3% year-over-year, signals sustained customer engagement despite macro headwinds.
Ulta’s focus on exclusive brand partnerships and celebrity collaborations continues to resonate with younger consumers, helping differentiate Ulta from competitors like Sephora and emerging online players. Management’s emphasis on “beautytainment” experiences and authentic social media engagement has driven record social impressions and meaningful earned media value.
However, Ulta’s cautious second-half outlook reflects broader concerns about consumer spending and the impact of tariffs on the beauty industry.
While Ulta expects comps in the first half to remain in the low single-digit range, management warned of potential negative to modest positive growth in the back half, suggesting ongoing uncertainty despite the strong start to fiscal 2025.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
