Latest news with #KeciaSteelman
Yahoo
2 days ago
- Business
- Yahoo
Ulta sees signs of improvement in Q1, but stays cautious
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. After a year of mixed performance, Ulta Beauty showed some positive momentum in the first quarter, with net sales up 4.5% to $2.8 billion. Comps in the quarter also increased 2.9% in the period, per a company press release. Ulta is seeing improvement in the performance of stores that were hit by competitive openings, like Sephora's Kohl's shop-in-shops, CEO Kecia Steelman said Thursday on a call with analysts. The retailer's stores recorded their first positive comps in more than a year. The executive added that Ulta's efforts to improve operations, including store cleanliness, appropriate staffing and fully stocked inventory, have helped as well. Total inventory was up more than 11% in the quarter, helping Ulta's in-stock positioning. Though Ulta executives expressed confidence in the beauty retailer's strategy and raised guidance slightly as a result, the company remains cautious about how consumer spending will shape up for the rest of the year. Steelman referenced beauty's recession-proof qualities, as well as shoppers' view of the category as a 'comfort and escape' from the stress of the current macro environment, as positives for Ulta. At the same time, though, she said customers are prioritizing value and warned that they may not follow through on their planned spending. 'While they tell us that they intend to prioritize beauty and wellness — that's what they say — but they could also do something very different depending on the environment,' Steelman said. 'So we're being really prudent.' CFO Paula Oyibo also stressed that while beauty is usually resilient, it's not 'immune to consumer pressure,' especially given the chaos and uncertainty caused by the Trump administration's tariff policies. 'One quarter doesn't make a trend,' Oyibo said as an explanation for why Ulta's guidance remains relatively conservative. Nevertheless, Ulta is seeing some green shoots from its operational initiatives as well. During the quarter, the retailer invested in higher staffing in stores, added more newness to stores and tweaked its marketing approach. In particular, Ulta cut back on less productive sales offers and made more distinct calls to action in communicating with shoppers. The retailer is on track to launch its marketplace in the second half of the year and will open its first stores in Mexico City, Kuwait City and the United Arab Emirates' Dubai later this year. Ulta said last year it planned to expand to Mexico. Less tangibly, Steelman also noted that Ulta is making progress on 'reenergizing our culture,' which she described as a competitive advantage. Steelman took over as CEO for Dave Kimbell in January and has since announced several leadership changes, including naming a chief merchandising and digital officer last month. This quarter marks the 'first time in a while' that Ulta drove share across the category, according to Steelman. The retailer lost share in beauty for the first time last year. 'It seems like everything the team is doing is showing signs of effectiveness, and in a fairly quick manner,' Piper Sandler analysts led by Korinne Wolfmeyer said in an analyst note. 'This undoubtedly builds on our optimism around the [long-term] opportunity here, but we still want to be prudent around competition, market volatility, and margin risks that could come.' Recommended Reading The Weekly Closeout: Coty to cut 700 jobs, Adidas sports double-digit growth Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Ulta's 45 million loyalty members will drive its personalization plans
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Ulta Beauty plans to better personalize its digital experience as the company prepares to navigate economic uncertainty, executives said on a Q1 2025 earnings call Thursday. The beauty retailer is expanding its automation and real-time content delivery capabilities across key digital channels, according to President and CEO Kecia Steelman. Ulta's loyalty program, which grew its membership 3% year over year to 45 million in the first quarter of 2025, will drive this effort, according to Steelman. 'Again, it's really taking our deep knowledge and understanding of our loyalty member base and elevating that personalization, that connectivity and communicating with them in the ways that they best feel suited,' she said on the call. Ulta Beauty wants to focus on the aspects of the business it can control, including customer experience, as it works to retain and attract customers amid economic uncertainty and increasing competition in the beauty space. 'I would just say beauty and wellness is what we do,' Steelman said. 'And when a lot of other players are trying to come into this space, this is where we are the experts. We have a leading loyalty program. Our omnichannel offering is anchored in that human connection, that in-store and that powerful digital connection — that combo really does set us apart.' Ulta's upcoming omnichannel investments will build on recently launched app features. Split Cart lets customers divide orders between multiple fulfillment methods, while Shop My Store offers users real-time visibility into store assortment and visibility. More than 60% of e-commerce sales are made through the app, according to Steelman. However, the company is exploring ways to enhance the digital experience beyond the app alone. 'We're accelerating our capabilities to deepen guest connection and drive performance,' Steelman said. 'We've expanded automation and real-time content delivery across key digital channels, allowing us to respond faster, personalize at scale and enhance the overall guest experience.' While digital is a focus, stores still account for 80% of Ulta's sales, according to Steelman. The retailer won't leave the in-store experience behind, and it's putting an emphasis on better in-stock rates. Ulta also increased the number of payroll hours in its stores in its latest quarter, according to Steelman. While this was a significant expense for the company, the additional worker hours paid off as the brand recovers from a downturn last year. 'We're just doubling down and making sure that we're giving the very best guest experience that we can in our stores, making sure that we have great marketing campaigns to drive the traffic into the store, and making sure that we have the products for the guests when they're coming in and giving a great guest experience,' Steelman said. Ulta's investments helped it achieve a solid quarter. Comparable sales rose 2.9% year over year in the first quarter of 2025, according to a company earnings report. Net sales rose 4.5% to $2.8 billion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Ulta Beauty Soars 11.2% on Earnings Beat and Upgraded Outlook
Ulta Beauty (NASDAQ:ULTA) just wrapped its first quarter with a better-than-expected finish, pushing past Wall Street's forecasts with $2.85 billion in revenue and earnings of $6.70 per share. The earning results drove the share price up 11.2% at 12.35pm today. The beauty retailer saw modest gains in foot traffic and average ticket size, but what really stood out was management's tonemeasured optimism, with a side of realism. CEO Kecia Steelman said their new "Ulta Beauty Unleashed" strategy is gaining traction, but also flagged a fluid environment that could reshape consumer demand as the year plays out. The company dialed up its full-year guidance slightly, now projecting up to 1.5% comp sales growth (up from 1%) and bumping its EPS range to $22.65$23.20. Still, some signals warrant a second look: gross margin dipped slightly to 39.1%, SG&A climbed to nearly 25% of sales, and inventories jumped 11%likely tied to new brand launches and store expansion. Ulta also maintained its full-year operating margin forecast at 11.7%11.8%, suggesting no major shifts in underlying cost dynamics. One thing that hasn't slowed down? Buybacks. Ulta scooped up nearly $359 million of its own shares this quarter, with another $2.3 billion left to deploy. The store count rose to 1,451 locations, and plans for 60 net new stores are holding steady. For now, the business looks steadybut how consumer spending evolves heading into the second half could be what defines the stock's next move. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Ulta Beauty Inc (ULTA) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amidst Margin Pressures
Net Sales: Increased 4.5% to $2.8 billion. Operating Profit: 14.1% of sales. Diluted Earnings Per Share (EPS): $6.70. Comparable Sales: Increased 2.9%. Gross Margin: Decreased 10 basis points to 39.1%. SG&A Expenses: Increased 6.7% to $711 million, 24.9% of sales. Cash and Cash Equivalents: $455 million at quarter end. Total Inventory: Increased 11.3% to $2.1 billion. Capital Expenditures: $79 million for the quarter. Share Repurchase: $359 million, 987,000 shares repurchased. New Stores: Opened six new stores, relocated two, remodeled four. Updated Fiscal 2025 Net Sales Guidance: $11.5 billion to $11.7 billion. Updated Fiscal 2025 EPS Guidance: $22.65 to $23.20 per share. Warning! GuruFocus has detected 3 Warning Signs with UVV. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ulta Beauty Inc (NASDAQ:ULTA) reported a 4.5% increase in net sales to $2.8 billion for the first quarter of fiscal 2025. The company achieved a 2.9% increase in comparable sales, driven by a 2.3% increase in average ticket and a 0.6% increase in transactions. Ulta Beauty Inc (NASDAQ:ULTA) expanded its active loyalty member base to a record 45 million, up 3% year-over-year. The company launched 19 new brands during the quarter, many of which are exclusive to Ulta Beauty Inc (NASDAQ:ULTA), contributing to strong guest engagement. E-commerce sales increased by about 10%, with more than 60% of these sales coming from the app, indicating strong digital engagement. Operating margin decreased by 60 basis points to 14.1% of sales, reflecting increased store payroll and benefits. Prestige skin care was flat for the quarter, while mass skin care decreased modestly. The hair care category was roughly flat, with growth in hair color and accessories offset by decreases in hair care tools and mass hair care. Ulta Beauty Inc (NASDAQ:ULTA) anticipates more uncertainty in the second half of the year, with potential comp sales growth ranging from down low single digits to up modestly. The company is cautious about the evolving global trade landscape and its potential impact on consumer wallet pressures, especially in the second half of the year. Q: Can you discuss the progress and any surprises with the Ulta Beauty Unleash Plan? A: Kecia Steelman, President and CEO, highlighted that the Ulta Beauty Unleash Plan is progressing well, with significant improvements in in-store execution, guest experience, and marketing efforts. The plan's focus on execution and assortment newness has resonated with guests, contributing to the positive results in Q1. Q: What are the key drivers for the full-year outlook of flat to 1.5% comp sales growth, and how do you view pricing and promotion given the tariff backdrop? A: Paula Oyibo, CFO, explained that the guidance reflects Q1 performance and uncertainty in the second half. The company expects a rational promotional environment and is focusing on optimizing promotions for profitable growth. Pricing strategies are being managed in collaboration with brand partners to mitigate potential impacts. Q: Can you elaborate on the newness and innovation pipeline for the rest of the year? A: Kecia Steelman noted that the company is optimistic about the upcoming newness and innovation, which is balanced across categories and includes exclusive offerings. The brand-building efforts and partnerships with brand partners are expected to drive continued guest engagement. Q: How do you attribute the improvements in demand and competitive intensity throughout the quarter? A: Kecia Steelman stated that while beauty remains a competitive category, Ulta's focus on differentiation through the Unleash Plan, newness, and guest engagement initiatives has helped drive market share gains. The company is confident in its ability to continue growing despite the competitive landscape. Q: What are the drivers behind the 10% growth in e-commerce, and are there any margin implications? A: Kecia Steelman attributed the e-commerce growth to enhancements like Split Cart and app engagement, with over 60% of e-commerce sales coming from the app. Paula Oyibo added that the company has been intentional about improving channel profitability, and channel mix is not the largest driver of gross margin pressure. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
3 days ago
- Business
- Business Insider
Ulta says consumers are looking to beauty products for 'a comfort and escape' from the world's stress
Retail therapy has been boosting Ulta Beauty's bottom line. On Thursday's earnings call, Ulta's CEO, Kecia Steelman, said that customers are buying beauty products to cope with big-picture concerns. "Many consumers indicate that they are leaning into beauty as a comfort and escape from the stress of macro uncertainty," Steelman said. "We expect this emotional connection will support the category's resilience going forward." She said customers are also willing to give up spending on other non-essential products so they can continue buying makeup and skincare products. "At the same time, they are cautious and value is an increasingly important priority as they navigate ongoing wallet pressures," Steelman added. Her remarks echoed what retailers across fast food, toys, and fashion have said about consumers tightening their spending in the last year. Steelman added that the amount spent per customer is fairly consistent across all income groups. Other retailers and banks have reported lower-income groups pulling back their spending more. Ulta said that first-quarter revenue rose 4.5% to $2.8 billion compared to the same period last year. The cosmetics retailer beat quarterly expectations and raised its annual profit forecast. Steelman said sales were boosted by established brands such as MAC, Estee Lauder, and Lancome, and by newly launched ones such as Tatcha, Milk Makeup, and K-beauty brand Peach & Lily. Shares of the company were up about 8% in after-hours trading. Ulta is up 9% in the past year because of resilience in the beauty category. Ulta's results were a bright spot in an earnings season that was tough on US retail. Last week, Target missed first-quarter revenue estimates as transactions fell, and the retail giant cut its full-year sales outlook. The world's largest retailer posted a similar outlook earlier this month: Walmart fell short of quarterly sales estimates, as customers pulled back on spending because of tariffs. "We're wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb," Walmart's chief financial officer, John David Rainey, said in an interview with CNBC earlier this month. He added that import duties, which for China were recently slashed to 30% for 90 days, were "still too high."
